Woodside Petroleum chief executive Don Voelte says Australia's second-largest oil and gas producer isn't for sale, amid speculation of a possible takeover bid by BHP Billiton.
''Your question is do you plan to put the company up for sale?'' Mr Voelte said in an interview in Perth today when asked about reports of a potential offer. ''The answer is no.''
BHP, the world's largest mining company, may be interested in buying Woodside with the approval of 34 per cent shareholder Royal Dutch Shell, the Australian Financial Review said yesterday. Former treasurer Peter Costello blocked a $US3.2 billion bid by Shell in 2001 to take control of Woodside, citing national interest.
''Shell may be a willing seller because they do have some quite big projects themselves up their sleeve,'' Nick Raffan, a Sydney-based analyst at Fat Prophets, said today. ''It wouldn't surprise me, looking ahead to petroleum demand, and I'm bullish on the oil price long-term, it would probably make sense if they could do it at the right price.''
Shell, Europe's largest oil company, expects spending on two gas projects in Qatar to be as much as $21 billion by the end of next year, according to presentations posted on the company's website yesterday.
BHP is Australia's biggest oil and gas producer and has an annual target for 10 per cent growth in petroleum output.
Talks about 'business'
Woodside shares rose 31 cents, or 0.6 per cent, to close at $49.41, in line with the broader market's rise. The stock has gained 35 per cent since the start of the year, compared with the benchmark's 26 per cent advance.
Mr Voelte said he has discussions with his counterparts at BHP and Shell. ''We talk to them about business,'' he said. ''We don't talk to them about takeovers or anything like that.''
Woodside attracts interest because of its potential for growth, Mr Voelte said. ''If you go into a candy store, what jumps out first is the thing with the most chocolate and the prettiest,'' he said. ''Companies covet our assets, our capabilities and our expertise. But we don't pay attention to it.''
In an earlier interview with Bloomberg Television, Mr Voelte said Woodside was looking forward to remaining an independent company and that he hasn't held any discussions with BHP CEO Marius Kloppers lately.
'Great 55 years'
''I think the best years are in front of us, we've had a great 55 years but the next 55 years as an independent Woodside are going to be great.''
Voelte also quashed speculation that former BHP CEO Chip Goodyear may join Woodside's board.
''Every once in awhile something hits the papers and we have no absolutely no idea where it comes from, and that's one of them,'' Mr Voelte said. ''There's nothing to it.''
Temasek, Singapore's state-run investment company in July abandoned a plan to appoint Goodyear as chief executive because of differences over strategy.
