Papua New Guinea's prime minister is taking a hands-off approach to a Woodside takeover move for Oil Search.
The Oil Search board this week unanimously rejected Woodside's all-scrip bid, valued at $11.6 billion, saying it grossly undervalued the PNG-focused energy producer.
Peter O'Neill confirmed he'd met with Woodside chief executive Peter Coleman in Port Moresby this week.
His government has a 10 per cent stake in Oil Search and a 17 per cent holding in the PNG LNG gas project.
But Mr O'Neill is reluctant to get involved in nutting out a deal.
"We have no intention whatsoever to interfere in the discussions that are taking place," Mr O'Neill told AAP in Port Moresby.
"It is unfair for any of the other shareholders, either in Oil Search or Woodside, for us to engage in any of those discussions."
Mr O'Neil wants the boards of Woodside and Oil Search to recommend the next course of action.
"We welcome any investment coming into the country," he said.
"We look forward to (Woodside) investing in either Oil Search or any other projects."
The PNG LNG project has performed above expectations and Oil Search holds stakes in the Elk and Antelope gas fields in the country.
Woodside has said it was surprised and disappointed that Oil Search's board had rejected the proposal without meeting with the company to understand the benefits or to negotiate the terms.
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