Investing.com - Crude oil prices rose in Asia on Friday as investors looked ahead to a meeting of OPEC and allied nations to review efforts to curb output and U.S. rig count later in the day as they digested an alarming report that North Korea could test a nuclear weapon over the Pacific Ocean.
The proposed sale by the Papua New Guinea (PNG) government of its remaining stake in Oil Search (OSH.AU) enhances the appeal of the Australian-listed liquefied natural gas supplier as an M&A target, according to analysts. The Australian Financial Review reported on Thursday that UBS and JPMorgan are offering 31.3 million Oil Search shares via a block trade at a floor price of AUD6.55 a share, a 3.8% discount to the last closing price of AUD6.81 a share. The 2.1% stake is the last remaining of the almost 10% stake that the PNG government acquired in 2014, financed by a AUD1.2 billion loan from UBS, which was later refinanced by UBS and JPMorgan. Facing cash flow problems, the PNG government terminated the funding agreement, which has led to the sale of the remaining shares.
The North Sea oil industry has seen a surge of investments due in part to significant drilling cost reductions