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Business |
OSL gas assets attract Chinese
groups
Proposals on gas reserves devt: Botten
Oil Search Ltd has had “direct
approaches” from Chinese companies and others wanting to be
involved in its development of gas reserves in Papua New Guinea,
managing director Peter Botten said yesterday.
But he denied any companies had made overtures to take over the
Australian oil and gas explorer and producer.
Shares in Oil Search soared last Monday as speculation was
reignited that the company’s highly valued gas resource in Papua
New Guinea was attracting Chinese interest.
Reports in Hong Kong said a Chinese joint venture was
considering a bid for the group of about US$5 billion (K15.24
billion).
“There are lots of people, lots of companies that are expressing
interest to become involved,” Botten told Sky News yesterday.
“We’ve had direct approaches from Chinese, from Japanese, from
North American and European companies to play some form of role
in the development of gas in that country.”
But asked to comment directly on the takeover speculation,
Botten said: “There’s been no approaches to us around that
issue”.
Last Monday, Oil Search shares surged 11.7% after a newspaper
reported that CNPC Exploration, a joint venture company between
China National Petroleum Corp and its subsidiary PetroChina, was
considering a bid.
Nevertheless, Botten dismissed suggestions the speculative A$5
billion bid price was an “overpayment”.
“What is the right price depends on the person who’s buying and
the timing of when they make that,” he said.
The Oil Search boss said at least three Chinese groups had come
through Port Moresby showing an interest in gas development.
The PNG Government, which holds a 17.6% stake in Oil Search, had
had talks with some Chinese groups, he said.
Meanwhile, the resources company was wary of directing its own
investment into overpriced acquisitions.
“We continue to look for acquisitions, but in this market, which
we see as an expensive market, we’re extremely disciplined about
how we acquire things.” – AAP
 
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