B07 Oil and Gas Extraction

Woodside tests patience on Scarborough

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 20-Nov-19

The recently-announced 52 per cent increase in the resource estimate for the Scarborough gas field may prompt Woodside Petroleum to retain more of its stake in the project. Woodside had previously flagged plans to reduce its 75 per cent stake in Scarborough. However, CEO Peter Coleman says Woodside still intends to reduce its stake in the Pluto 2 LNG plant by up to 50 per cent, although it is not an immediate priority. A deal with BHP to process gas from the Scarborough field via the Pluto plant is expected to be finalised by March.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP GROUP LIMITED – ASX BHP, CHEVRON CORPORATION, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, ALLAN GRAY AUSTRALIA PTY LTD, FAR LIMITED – ASX FAR, CONOCOPHILLIPS

Santos seizes Australian oil and gas crown

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Original article by Paul Garvey
The Australian – Page: 19 : 15-Oct-19

Santos expects a $US1.39bn deal to acquire the northern Australia assets of ConocoPhillips to boost its earnings by about 16 per cent. The deal includes the US group’s controlling stake in the Darwin LNG plant, as well as its interests in the Bayu-Undan, Barossa and Poseidon gas fields. Santos will now surpass Woodside Petroleum as Australia’s biggest oil and gas producer. ConocoPhillips still has a 37.5 per cent stake in the Australia Pacific LNG project in Queensland.

CORPORATES
SANTOS LIMITED – ASX STO, CONOCOPHILLIPS, WOODSIDE PETROLEUM LIMITED – ASX WPL, QUADRANT ENERGY PTY LTD, RBC CAPITAL MARKETS, WOOD MACKENZIE, JP MORGAN AUSTRALIA LIMITED

BHP’s still pumped about petroleum

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Original article by Nick Evans
The Australian – Page: 20 : 11-Oct-19

BHP’s head of petroleum Geraldine Slattery has told a recent question and answer session in London that oil and gas will remain an integral part of the group’s portfolio. However, whether its historical Australian oil and gas assets remain part of that portfolio is uncertain, with analysts suggesting it may seek to divest its interests in the North West Shelf and Bass Strait. Slattery added that BHP is upbeat about its long-term prospects in Mexico, where it has a stake in the Trion oil field.

CORPORATES
BHP GROUP LIMITED – ASX BHP

BP’s grim warning on carbon emissions

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 7-Oct-19

BP’s chief economist Spencer Dale says everyone has a responsibility when it comes to steering the world towards a goal of zero net carbon emissions. He says energy companies like BP have a role to play in achieving cleaner energy, but that they cannot get too far ahead of governments and society. Dale adds that investing in new oil and gas fields is still important in terms of meeting energy demand in developing nations, while he says there is a growing mismatch between current emissions output and the wishes of society.

CORPORATES
BP PLC

Oil Search taps Wulff as legend Botten retires

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 16 & 22 : 2-Oct-19

Oil Search’s incoming CEO Keiran Wulff has downplayed suggestions that the Papua New Guinea-focused LNG producer may become a takeover target after Peter Botten steps down. Wulff says that succession planning has been in the works for some time, given that Botten has been at the helm for 25 years. Wulff, who currently heads Oil Search’s operations in Alaska, will succeed Botten in February. However, Botten will remain at Oil Search until August to ensure a smooth transition.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, CREDIT SUISSE (AUSTRALIA) LIMITED, RBC CAPITAL MARKETS, ALLAN GRAY AUSTRALIA PTY LTD, EXXONMOBIL CORPORATION

Activists call for blanket cap on Qld LNG exports

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 : 26-Sep-19

The Australia Institute and the Lock The Gate Alliance are among the activist groups that have urged the federal governance to impose a cap on Queensland’s LNG exports. They contend that such a cap would put downward pressure on domestic gas prices. Another option that has been advocated by some activists is to amend the Australian Domestic Gas Security Mechanism to include a price trigger. The federal government is reviewing the ADGSM, which has not been utilised to date.

CORPORATES
THE AUSTRALIA INSTITUTE LIMITED, LOCK THE GATE ALLIANCE INCORPORATED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, ENERGY USERS ASSOCIATION OF AUSTRALIA, ORIGIN ENERGY LIMITED – ASX ORG, AGL ENERGY LIMITED – ASX AGL, ESSO AUSTRALIA PTY LTD, BHP GROUP LIMITED – ASX BHP, REMAPAK PTY LTD, CLAYPAVE PTY LTD

ExxonMobil to exit Bass Strait gas and oilfields

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Original article by Perry Williams
The Australian – Page: 17 : 19-Sep-19

Oil major ExxonMobil is to put its 50 per cent stake in the Gippsland Basin Joint Venture on the market. ExxonMobil holds its 50 per cent interest in the GBJV through Esso, with BHP owning the other 50 per cent. It has been suggested that ExxonMobil could secure up to US2.5 billion ($3.65 billion) for its share of the GBJV, which houses offshore oil and gas assets in Bass Strait and the Longford and Long Island Point plants in Victoria. There is speculation that BHP might seek to put its share of the GBJV up for sale as well as a result of ExxonMobil’s announcement.

CORPORATES
EXXONMOBIL CORPORATION, ESSO AUSTRALIA PTY LTD, BHP GROUP LIMITED – ASX BHP

Saudi attack to send oil prices soaring

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Original article by Vesna Poljak,{SHARE}Peter Ker
The Australian Financial Review – Page: 1 & 13 : 16-Sep-19

Federal energy minister Angus Taylor has stated there are no immediate threats to Australia’s oil supplies, following attacks on Saudi Arabia’s energy infrastructure on 14 September. The drone attacks, by Iranian-backed Yemen Houthi rebels, are the most serious thus far on Saudi oil infrastructure, according to Ben Cleary from the Tribeca Global Natural Resources Fund. Saudi Arabia reported that over five million barrels oil production a day would be foregone immediately following the attacks, equivalent to between five and six per cent of global output. The attacks are tipped to spark a surge in oil prices when trading resumes on 16 September.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Gas find off Victoria lifts hopes for supply from late 2021

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: Online : 7-Sep-19

Cooper Energy and Mitsui have reported a new gas find off the coast of Victoria, with the Annie-1 discovery being located near to an existing gas plant and pipeline. Cooper Energy MD David Maxwell indicated that drilling results indicated a discovery in line with expectations before the well was drilled, which suggests a ‘best estimate’ of 70.5 billion cubic feet, and possibly as much as 137 bcf. Supply from Annie-1 could commence as soon as late 2021.

CORPORATES
COOPER ENERGY LIMITED – ASX COE, MITSUI AND COMPANY (AUSTRALIA) LIMITED

Potential $50b wave of gas M&A deals around the corner

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 27 : 30-Aug-19

David Low of Wood Mackenzie says mergers and acquisitions activity in Australia’s oil and gas sector could increase in coming years. He identifies Cooper Energy and Senex Energy as being among the smaller companies that could become takeover targets, while Oil Search could also potentially attract suitors following its recent share price weakness. Low adds that international companies such as ConocoPhillips and Eni could opt to divest some or all of their assets in Australia.

CORPORATES
WOOD MACKENZIE, COOPER ENERGY LIMITED – ASX COE, SENEX ENERGY LIMITED – ASX SXY, OIL SEARCH LIMITED – ASX OSH, CONOCOPHILLIPS, ENTE NAZIONALE IDROCARBURI SPA, COMET RIDGE LIMITED – ASX COI, GALILEE ENERGY LIMITED – ASX GLL, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, QUADRANT ENERGY PTY LTD