Woodside Company Essay Example | Topics and Well Written Essays - 750 words

Woodside Company - Essay Example tally to the policy of theme interests, leaders of all countries are assumed to act in a rational way with the become of safeguarding and pursuing their state objectives. This means that countries emulate the policies that are considered by the leaders to be of importance in developing and improving the well-being of their societies1. In their efforts to attain an economic growth and ensure transparency in the petroleum industries among other sectors, governments have adopted the policy of national interest. For instance, to safeguard the interest of local and unlike investors in the Australian oil sector, the government has put in place various measures to regulate the oil industry. For example, the government prohibited Royal Dutch Shell and BHP from undertaking the acquisition of Woodside oil colour. The acquisition was valued at $35bn. One of the major strategies that Shell Company adopted was to take over Woodside incorporation with an objecti ve of expanding its food market share. According to Peter Voser, the high society chief executive officer, this strategy was emulated in order to enhance innovativeness and combat thus expanding the capital base leading to expanded investment and high dividends. Additionally, the company was focused at maintaining a sustainable cash flow that would make it to effectively meet its short-term liabilities and improve the company liquidity. However, based on the concept of the national interest, Peter Costello, The Foreign Acquisitions and Takeovers Act (FATA) treasurer rejected the force out by Shell Investment Limited to purchase a majority interest in Woodside Petroleum Limited. Woodside Company is responsible for managing natural gas consortium that is based at the north West Shelf. According to Costello, Woodside Petroleum Limited had a national interest to maximize the production of natural gas from North West Shelf in order to increase the country sales and compete with othe r countries in the world natural market2. Additionally, the Australian government was focused at protecting Woodside performance in the run exchange market. Even though Shell aimed at controlling Woodside Company under the leadership of go into Voelte, Woodside management and the politician in Australia were against the Shell decision making it to be frustrated. One of the major aspects that were targeted by Shell is the Woodside-operated Pluto project that was generating large volume of oil resulting to increased profitability for Woodside3. Additionally, Shell argued that if assumption authority to control the $43bn Gorgon gas project among others that are located in Western Australia, it would increase the sum up r compensateue and initiate a sustainable growth as compared to Woodside. The sale offer was valued at $10 billion4. In 2010, Shell energy Holdings Australia Limited (SEHAL) agreed to sell 78 million shares that it has in Woodside to UBS AG. The sale resulted to the step-down of Shell interest in Woodside by 29%. In addition, the selling of the shares resulted to reduction of Shell capital in Woodside by 10%. In this regard, major issues that affected Woodside were mostly obstinate by the Woodside management team5. In the same way, SEHAL was focused to retain the remaining shares for at least genius year. According to Peter Voser the CEO, Shell is determined to expand its investment portfolio in Australia. It is worth to note that even though Shell was prevented from acquiring majority interests in Woodside, the company purchased Australia LNG thus increasing its production expertness to 2.7 mtpa in 2010. The company is focused at increasing this capacity to 6.5 mtpa in the next 3 years. Having change its shares at