B07 Oil and Gas Extraction

Petrol demand still on rise, but peak prediction is 2030

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 27 : 13-Jun-18

FACTS Global Energy chairman Fereidun Fesharaki expects growth in global consumption of crude oil to average 0.7 per cent a year until 2040. However, Fesharaki expects global demand for petrol to peak in 2030, while demand in Asia will peak in 2040. Fesharaki also says Woodside Petroleum’s Scarborough LNG project is certain to proceed, although he warns that other projects are doubtful due to LNG buyers’ aversion to long-term supply deals.

CORPORATES
FACTS GLOBAL ENERGY GROUP OF COMPANIES, WOODSIDE PETROLEUM LIMITED – ASX WPL, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, CREDIT SUISSE AG

BHP’s US shale gets low-ball bid

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Original article by Matt Chambers
The Australian – Page: 20 : 7-Jun-18

A Bloomberg News report has suggested that BHP Billiton is seeking at least $US10bn for its US shale oil and gas assets if they are sold as a package, and up to $US13bn if they are broken up. However, the report claims that the initial offers have been within the range of $US7bn to $US9bn. Peter O’Connor of Shaw & Partners stresses that first-round bids are typically low and will be increased when final bids are submitted. Some analysts expect the recent rise in the crude oil price to boost the sale price of the shale assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BLOOMBERG LP, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, ELLIOTT MANAGEMENT CORPORATION, PETROHAWK ENERGY CORPORATION, BP PLC, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, THE BLACKSTONE GROUP LP

Santos in $400m bid to lift gas supply

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 1-Jun-18

Santos has confirmed that it will proceed with the Arcadia gas project in Queensland’s Bowen Basin, which will boost coal-seam gas supplies to the Gladstone LNG plant by 75 terajoules a day. Santos drilled 13 gas wells in a pilot project at Arcadia, and the full project will comprise 137 wells and associated infrastructure. About 300 jobs are expected to be created during the construction phase, while Santos MD Kevin Gallagher says Arcadia should help put downward pressure on east coast gas prices.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, PETRONAS GAS BHD, TOTAL SA, KOREA GAS CORPORATION, QUEENSLAND. DEPT OF NATURAL RESOURCES AND MINES

Woodside vows to defend SNE oil site

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Original article by Matt Chambers
The Australian – Page: 20 : 31-May-18

The legal dispute over a stake in the SNE oilfield in Senegal was a key issue on the agenda at FAR Limited’s 2018 AGM. Chairman Nic Limb told shareholders that the company will have the right to buy a 35 per cent stake in the oilfield at the same price that Woodside Petroleum paid for it if an arbitration court rules in FAR’s favour. He has also not ruled out seeking a partner to buy the stake if Woodside’s deal with ConocoPhillips is overturned. A Woodside spokeswoman has described the arbitration as "frivolous" and without merit.

CORPORATES
FAR LIMITED – ASX FAR, WOODSIDE PETROLEUM LIMITED – ASX WPL, CONOCOPHILLIPS, INTERNATIONAL COURT OF ARBITRATION

Santos and ENN in an awkward spot after Harbour bid rejected

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Original article by Simon Evans, Michael Smith
The Australian Financial Review – Page: 17 : 25-May-18

Oil and gas producer Santos announced on 22 May that it had rejected a $A14.4 billion takeover bid from private equity firm Harbour Energy. Chinese gas firm ENN, which is a major shareholder in Santos, did not take part in the board’s decision to reject Harbour’s bid, as it had backed the Harbour offer. Santos CEO Kevin Gallagher says he does not expect there to be any tension on its board as a result of the decision to reject the offer, while Macquarie Capital has described the decision as a "bold move".

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, MACQUARIE CAPITAL PTY LTD, HONY CAPITAL, ENERGYQUEST PTY LTD

LNG shortage to hit soon, says Woodside

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Original article by Matt Chambers
The Australian – Page: 17 & 28 : 24-May-18

Woodside Petroleum now expects a global shortage of LNG to occur in 2021, with CEO Peter Coleman warning that supply and demand could be in deficit even earlier. Woodside had previously flagged an LNG shortage in 2023, but it has revised this forecast due to factors such as rising demand in Asian countries other than China. Coleman also says contract prices for LNG buyers on Australia’s east coast are likely to rise.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, CHEVRON CORPORATION

Santos share price now at right level

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Original article by Simon Evans
The Australian Financial Review – Page: 17 & 28 : 24-May-18

Troy Angus of Paradice Investment Management says Santos’s rejection of a takeover offer from Harbour Energy was justified, saying it did not reflect the growth potential of some assets. Santos CEO Kevin Gallagher has also defended the decision to spurn the $A14.4bn bid, after Harbour Energy questioned the oil and gas group’s medium-term growth opportunities. Santos shares closed 8.4 per cent lower at $A5.90 on 23 May, but Gallagher says the stock is now at an appropriate after rising in recent months.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, PARADICE INVESTMENT MANAGEMENT PTY LTD, CONOCOPHILLIPS, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, AUSTRALIAN LABOR PARTY

Industry baulks at Pauline’s gas pact

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Original article by Matt Chambers
The Australian – Page: 4 : 23-May-18

The Australian Petroleum Production & Exploration Association has warned that oil and exploration costs would rise under proposals put forward by One Nation leader Pauline Hanson. The Federal Government had agreed to a number of concessions in return for One Nation’s support for its company tax package, including changes to the Petroleum Resource Rent Tax and a gas reservation scheme in Western Australia. One Nation subsequently withdrew its support for the tax package, although LNG producers still anticipate some changes to the PRRT.

CORPORATES
AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, ONE NATION PARTY, CHEVRON AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Santos rejects $14.5bn Harbour bid

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Original article by Matt Chambers, Scott Murdoch
The Australian – Page: 17 & 22 : 23-May-18

Santos has terminated discussions with Harbour Energy after its board deemed that the suitor’s "best and final" offer of $US5.21 ($A6.95) per share did not reflect the oil and gas group’s full value. The deal would have required approval by 75 per cent of Santos shareholders, as well as the Foreign Investment Review Board. It is believed that Santos CEO Kevin Gallagher and most of its board supported the deal, but chairman Keith Spence is said to have opposed it from the outset. Santos shares closed $A0.08 higher at $A6.44 on 22 May.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Harbour raises bid for Santos to $14.5bn

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Original article by Matt Chambers
The Australian – Page: 19 : 22-May-18

Shares in Santos closed 1.8 per cent higher on 21 May at $A6.36, in response to an improved takeover bid from Harbour Energy. The US group increased its bid from the initial offer of $US4.98 per share to $US5.21, which equates to $A6.95 based on the current exchange rate. Harbour Energy has advised that its new offer is "best and final", and it is conditional on Santos agreeing to hedge its oil production. Santos has told shareholders to take no action until its board considers the revised offer.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ARGO INVESTMENTS LIMITED – ASX ARG, KATANA ASSET MANAGEMENT LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, EIG GLOBAL ENERGY PARTNERS, ROYAL DUTCH SHELL PLC