Woodside Petroleum

Street Talk revealed Woodside was looking at raising debt to help boost its $11.6 billion all scrip offer, with straight bridge financing believed to be the preferred option.

A $3 billion cash sweetener would equate to an extra $1.97 per share, on top of the $7.65 a share scrip offer, taking the total bid to $9.62.

This would signal Woodside was serious in its pursuit of Oil Search, after analysts and investors suggested a bid nearing the $10 mark would be necessary to get a deal over the line.

The PNG based energy producer says the offer grossly undervalues it.

Woodside's chief executive, Peter Coleman, is set to hold talks with the PNG Prime Minister Peter O'Neill this week.

The government holds a 10 per cent stake in Oil Search and has significant sway over whether a deal could proceed, given it also owns 17 per cent in PNG's foundation LNG gas project.