Woodside has signed a Sales and Purchase Agreement (SPA) with Shell Development Australia Pty Ltd to acquire its North West Shelf oil interests for US$398.5 million, effective 1 August 2007. Shell’s North West Shelf oil assets include its share in the Cossack, Wanaea, Lambert and Hermes oil fields (including the Cossack Pioneer production facility), the Egret oil discovery and remaining active oil exploration portfolio within a tieback distance to the Cossack Pioneer.
The North West Shelf oil asset transfer is subject to standard regulatory and joint venture participant approvals, and additional approvals by the Woodside Board and company shareholders, as well as the Board of Shell.
The sale will increase Woodside’s participating interest in the Cossack, Wanaea, Lambert and Hermes fields to 33.33%. The company’s interests in the Egret oil discovery area and remaining active oil exploration portfolio within a tieback distance to the Cossack Pioneer will increase to 50%.
The agreement covers estimated proved and probable reserves of 21.3 million barrels of oil equivalent, and an additional 9.3 million barrels of contingent resources, as at 1 August 2007.
The purchase price is equivalent to US$18.71 per barrel of oil equivalent for proved and probable reserves. In a related agreement, Shell will have a “right of final offer” for Woodside's assets in Libya should Woodside agree to proceed with a sale.
As previously advised, Woodside is examining its options in relation to its remaining African assets, which may include further sales of these assets. Any sale of Woodside’s Libyan interests would be subject to an acceptable offer being received, any preemption rights of the company’s Libyan joint venture participants and required approvals by Libyan Government authorities.
