Sydney

WOODSIDE Petroleum Ltd abandoned its US$8 billion offer for Papua New Guinea-focused Oil Search Ltd almost three months after the bid was rejected, dropping plans for what would have been the biggest energy takeover in Asia. Oil Search tumbled 16 per cent at the close in Sydney, the most in seven years, while Woodside slumped to the lowest in a decade. Woodside, Australia's second-largest oil producer, isn't pursuing any alternative deals to combine the businesses, the Perth-based company said on Tuesday.

Woodside ditched the plan as crude traded near the lowest level in more than six years amid speculation a global glut will persist. Oil has fallen about 40 per cent over the past year as the Organization of the Petroleum Exporting Countries boosted supply in a battle for market share with producers outside the group, including Russia and US shale drillers.