Decision soon on Shell's Woodside bid

Shell has extended the deadline for its Woodside bid

By CNN's Ian McMinn

SYDNEY, Australia (CNN) -- The fate of Shell's latest bid for control of Woodside Petroleum now rests with the Australian Treasurer, Peter Costello, and will be known within a week.

"The deadline cannot be extended past April 24, when he will announce his decision," a Costello aide told CNN.

Costello is taking advice on Shell's $5 billion takeover bid from the Australian Foreign Investment Review Board.

Woodside Petroleum operates Australia's largest export earner -- the North West Shelf oil and gas fields off the coast of Western Australia.

There are six equal partners in the North West Shelf project -- BHP, Woodside, Japan Australia LNG (MiMi) and local units of Chevron, BP Amoco and Royal Dutch/Shell.

Earlier this month the partners approved a $780 million expansion of the LNG project, including the addition of a fourth gas processing train.

Shell made its original takeover offer for Woodside on November 24. Subject to the treasurer's announcement, Shell has already extended its offer to May 9, the fourth time since it was originally due on January 15.

Shell is offering A$14.80 plus a call option, subject to an asset transfer proposal, to lift its stake in Woodside from 34 to 56 percent.

Woodside management says price is inadequate

The asset transfer is in exchange for 333.3 million Woodside shares.

The assets include a 16.67 percent interest in the North West Shelf project; a 25 percent interest in the Corallina oil field and the Northern Endeavour floating production facility; a 22.5 percent interest in the Laminaria oil field, in the offshore Timor Basin; other interests in West Australian gas fields and oil and gas fields in the Gulf of Mexico.

Some industry analysts see the Shell offer reflecting a need to rationalize the management structure and labor costs at the North West Shelf project, in particular, and Woodside generally.

However Woodside management say the price is inadequate and has urged shareholders to reject the offer.

Te Australian Competition and Consumer Commission has already said it would not intervene in Shell's bid for Woodside.

Observers says the government is likely to approve the bid, but may attach strict conditions.

Woodside Petroleum Ltd
Shell offer

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