12/12/2014 - 11:00

Takeovers hot up in Asian oil market

12/12/2014 - 11:00

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Nido Petroleum has launched a $US108 million ($130 million) bid for Otto Energy’s share of the Galoc oil field, coming in ahead of a recent proposal by Risco Energy International.

Takeovers hot up in Asian oil market
Nido Petroleum's managing director Phil Byrne.

Nido Petroleum has launched a $US108 million ($130 million) bid for Otto Energy’s share of the Galoc oil field, coming in ahead of a recent proposal by Risco Energy International.

The Singaporean-based Risco had offered $US101.4 million for Otto’s 33 per cent interest in the project, and has waived its right to match the new sale price.

The field is located off the coast of the Philippines and produced around 7,780 barrels per day in the September quarter, Otto said.

The Otto board has unanimously recommended the sale and will use some of the proceeds to provide a capital return to shareholders.

The deal follows the partial acquisition of Nido by Thai refiner Bangchak Petroleum earlier this year, which was at a 62 per cent premium to Nido’s one month volume weighted average price.

Bangchak, which has a market capitalisation of around $1.4 billion, purchased Nido as a route to expand its upstream presence in the region.

The purchase of the Galoc field will contribute to this strategy.

Otto was up 4.5 per cent at the time of writing, to 9.3 cents per share, while Nido fell 11.1 per cent to 3.2 cents per share.

The Otto takeover action follows Carnarvon Petroleum announcing last week the sale of its remaining assets in Thailand for $US58.2 million ($A68.5 million).

It has sold its residual 20 per cent stake in oil production concessions to Berlanga Thailand.

Carnarvon sold an initial 20 per cent stake in March for $US65 million.

 

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