B07 Oil and Gas Extraction

Warning over gas glut: Oil Search

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Original article by Andrew White
The Australian – Page: 23 : 22-Aug-18

Oil Search has posted a 2018 interim net profit of $US79.2m ($107.7m), which is 39 per cent lower than previously. Production fell by 31 per cent to 10.24 million barrels of oil equivalent after its Papua New Guinea operations were disrupted by an earthquake in February. Oil Search expects full-year output of 24 million to 26 million boe. Meanwhile, CEO Peter Botten has questioned whether all four of the proposed LNG import terminals in the eastern states would be economically viable.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, AGL ENERGY LIMITED – ASX AGL, FORTESCUE METALS GROUP LIMITED – ASX FMG, EXXONMOBIL CORPORATION

BHP sells US onshore oil and gas assets for heavy loss

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Original article by Stephen Letts
abc.net.au – Page: Online : 27-Jul-18

BHP Billiton has advised that it has sold its US onshore oil and gas assets for a total of $US10.8 billion ($14.6 billion). BP is to acquire BHP’s Eagleford, Haynesville and Permian fields, while Merit Energy will buy the remainder of BHP’s Fayetteville assets. BHP has invested $50 billion in its US onshore oil and gas assets since 2011. BHP CEO Andrew MacKenzie said the sale would help to reduce its debt, with the net proceeds to be returned to its shareholders.

CORPORATES
BHP BILLITON LIMITED – ASX BHP BP PLC MERIT ENERGY

Imports the only cure for gas headache

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 25-Jul-18

Mark Samter of MST Marquee says industrial gas users on Australia’s east coast should support plans to build LNG import terminals, as gas prices will keep rising. Samter has downplayed a recent report from the Australian Energy Market Operator which suggested that the gas crisis on the east coast is likely to ease due to higher production in coming years. He argues that gas prices are unlikely to fall without the proposed import terminals.

CORPORATES
MST MARQUEE, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED

Browse fields deal looms for Woodside

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 20-Jul-18

The partners in the North West Shelf venture have agreed to allow the LNG plant at Karratha to process third-party gas. This will include gas from Woodside Petroleum’s Browse LNG project. The North West Shelf’s gas reserves are expected to be exhausted some time after 2021, and the deal for third-party gas processing will extend the life of the Karratha plant. Meanwhile, Woodside has advised that it produced 22.1 million barrels of oil equivalent in the June quarter, while its sales totalled $US1.08bn.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, JP MORGAN AUSTRALIA LIMITED

Carnarvon soars 50pc after big oil discovery

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Original article by Paul Garvey
The Australian – Page: 20 : 19-Jul-18

Carnarvon Petroleum has advised that its Dorado-1 well off the coast of Western Australia has struck oil over a depth of 96.1 metres, including a net pay thickness of 79.6 metres. MD Adrian Cook has described the oil find as "transformational" for the oil and gas explorer, which holds a 20 per cent stake in the Dorado-1 well. Shares in Carnarvon closed 57.1 per cent higher at $0.275 on 18 July.

CORPORATES
CARNARVON PETROLEUM LIMITED – ASX CVN, QUADRANT ENERGY PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, BROOKFIELD ASSET MANAGEMENT INCORPORATED, WESFARMERS LIMITED – ASX WES

Warning on rush to build LNG terminals

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Original article by Paul Garvey
The Australian – Page: 20 : 17-Jul-18

Four LNG import terminals are currently mooted for Australia; two in Victoria, and one each in New South Wales and South Australia. However, Nicholas Browne from Wood Mackenzie says Australia does not need that many terminals, based on its current market forecasts. Of the four terminals currently flagged, Browne says AGL’s proposed terminal at Crib Point in Victoria is most likely to be developed first.

CORPORATES
WOOD MACKENZIE, AGL ENERGY LIMITED – ASX AGL, EXXONMOBIL AUSTRALIA PTY LTD, MITSUBISHI CORPORATION

Twiggy, Santos battle over gas developments

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Original article by Perry Williams
The Australian – Page: 17 & 27 : 10-Jul-18

Macquarie has suggested that Santos could find it hard to secure New South Wales government approval for its Narrabri coal-seam gas project if Australian Industrial Energy builds an LNG import terminal. AIE CEO James Baulderstone claims that the facility would be able to supply gas to NSW much faster and at much lower cost. However, Santos CEO Kevin Gallagher argues that gas from Narrabri would be much cheaper. The AIE consortium’s members include iron ore magnate Andrew Forrest.

CORPORATES
SANTOS LIMITED – ASX STO, AUSTRALIAN INDUSTRIAL ENERGY, MACQUARIE GROUP LIMITED – ASX MQG, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT

Oil surge to drive $8.1bn LNG windfall

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Original article by Matt Chambers
The Australian – Page: 17 & 21 : 3-Jul-18

A quarterly report from the Office of the Chief Economist shows that Australia’s resources and energy exports are forecast to top $238.18bn in 2018-19, compared with $226.32bn in 2017-18. Revenue from LNG exports is expected to rise by 12 per cent to $43.5bn, while revenue from coking and thermal coal exports is tipped to be $58.1bn. Iron ore export revenue is forecast to be $57.7bn in 2018-19, while revenue expectations for 2017-18 have been scaled back from $65.3bn to $61.8bn.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE. OFFICE OF THE CHIEF ECONOMIST, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, ROYAL DUTCH SHELL PLC, CHEVRON CORPORATION, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Australia to slip in LNG ranking

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 19 : 27-Jun-18

The International Energy Agency’s latest gas market report notes that global demand for natural gas increased by three per cent in 2017. This was primarily due to rising gas consumption in China as part of the nation’s strategy to improve air quality. Meanwhile, the IEA forecasts that the global LNG market will grow by nearly 30 per cent over the next five years. Much of this growth will be due to higher production by the US, which is forecast to supplant Australia as the second-largest LNG exporter by 2023.

CORPORATES
INTERNATIONAL ENERGY AGENCY

Caltex tips profit rise despite downturn

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 13-Jun-18

Caltex Australia has advised that its 2018 interim net profit is expected to be within the range of $A295m to $A315m, compared with $A294m previously. Caltex has also forecast that its fuels and infrastructure division will post half-year EBIT growth of nine per cent. However, its convenience retail division’s EBIT is expected to be 17 per cent lower than previously. This has been attributed to factors such as lower fuel margins and costs associated with dismantling its franchise model.

CORPORATES
CALTEX AUSTRALIA LIMITED – ASX CTX, SEAOIL, WOOLWORTHS GROUP LIMITED – ASX WOW, GULL PETROLEUM (NZ) LIMITED