Woodside investors approve merger with BHP upstream arm

Woodside investors approve merger with BHP upstream arm

London, 19 May (Argus) — Shareholders in Australian independent Woodside Petroleum have approved a merger with the petroleum arm of Australian resources firm BHP to create Australia's largest oil and gas producer.

The A$41bn ($28.7bn) all-share transaction is expected to be completed on 1 June. More than 98pc of the proxy and direct votes were in favour of Woodside merging with BHP's oil and gas operations to create a producer with an output of around 550,000 b/d of oil equivalent (boe/d).

BHP shareholders will receive Woodside shares rather than cash and existing Woodside shareholders will own 52pc of the enlarged company. BHP shareholders will own the remaining 48pc. BHP will focus on mining activities in iron ore, coking coal, copper, nickel and potash once the merger is complete.

Woodside earlier this week received its last outstanding regulatory condition for the merger when the National Offshore Petroleum Titles Administrator (Nopta) approved the merger. Nopta is Australia's regulator responsible for issuing exploration and upstream development permits for offshore areas overseen by the federal government.

When the merger was first unveiled in August, Woodside said the combined production of the merged company will be 46pc LNG, 29pc oil and condensate and 25pc domestic gas and liquids.

Production assets