B07 Oil and Gas Extraction

Oil Search reassures on Alaskan project funding

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 15-Dec-17

Oil Search CEO Peter Botten says a recent $US400m deal to acquire stakes in several oil fields in Alaska was necessary due to the expected long delay in commencing each phase of its LNG project in Papua New Guinea. He has stressed that the investment in Alaska will have no impact on its commitment to the PNG LNG project. He has also indicated that Oil Search will not need to undertake an equity raising to finance either project.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, REPSOL SA

Gas price plunge after exporters toe PM’s line

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Original article by Matt Chambers
The Australian – Page: 1 & 2 : 13-Dec-17

A new report shows that wholesale gas prices on the east coast have fallen by up to 50 per cent since the Federal Government flagged plans to impose LNG export controls in order to boost domestic gas supplies. The Australian Competition & Consumer Commission will release the second report on its investigation into the east coast gas market on 13 December. The report notes that rather than a forecast gas shortage of up to 107 petajoules in 2018, there is the potential for a surplus of around 20 petajoules as LNG producers redirect export volumes to the domestic market.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ROYAL DUTCH SHELL PLC, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, INCITEC PIVOT LIMITED – ASX IPL, AGL ENERGY LIMITED – ASX AGL

Mineral Resources in scrip offer for AWE

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Original article by Matt Chambers
The Australian – Page: 19 : 12-Dec-17

Shares in Mineral Resources closed eight per cent lower at $A16.39 on 11 December after it launched a $A510m takeover bid for AWE Limited. The scrip bid was initially pitched at $A0.80 per share, but the downturn in Mineral Resources’ stock reduced the value of its bid to $A0.73, in line with the rival bid from China Energy Reserve & Chemical Group. Mineral Resources MD Chris Ellison says AWE’s stake in the Waitsia gas field is of primary interest to his company, both to supply its own operations and Western Australian gas users.

CORPORATES
AWE LIMITED – ASX AWE, MINERAL RESOURCES LIHIR PTY LTD, CHINA ENERGY RESERVE AND CHEMICAL GROUP, ORIGIN ENERGY LIMITED – ASX ORG, LATTICE ENERGY LIMITED, BEACH ENERGY LIMITED – ASX BPT, SHA ENERGY, QUADRANT ENERGY PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL

Suitor plots east coast for AWE’s gas

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 11-Dec-17

Kevin Gao, the Australian business manager of China Energy Reserve & Chemicals Group, stresses that supplying the Western Australian gas market will be the Chinese group’s priority if its takeover bid for AWE Limited succeeds. He has downplayed concerns that CERCG aims to primarily supply the Chinese market via its $A463m hostile bid. Gao adds that gas from the Waitsia gas field in the Perth Basin could potentially be shipped to Australia’s east coast if supply is surplus to demand in WA. CERCG is offering $A0.73 per share for AWE.

CORPORATES
AWE LIMITED – ASX AWE, CHINA ENERGY RESERVE AND CHEMICAL GROUP, UBS HOLDINGS PTY LTD, HIGHBURY PARTNERSHIP PTY LTD, ARGONAUT SECURITIES PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

LNG glut may last 10 years

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Original article by Matt Chambers
The Australian – Page: 20 : 7-Dec-17

Most analysts expect rising demand for LNG to result in a global shortage by 2023. However, Macquarie Group has forecast that the current global oversupply could potentially last until 2027. The prospect of increased output by countries such as the US, Russia and Qatar are among the factors that could contribute to the oversupply being sustained for longer than anticipated. Meanwhile, new data shows that the three LNG projects in Queensland shipped 1.704 million tonnes in November, compared with 1.68 million tonnes in October.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, ROYAL DUTCH SHELL PLC, SANTOS LIMITED – ASX STO, ENN GROUP

Gas supply at mercy of low Bass Strait fields

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Original article by Paul Garvey
The Australian – Page: 9 : 24-Nov-17

The Bass Strait gas fields are likely to start running out of gas in the medium term, according to a report to be released by the Department of ­Industry, Innovation and ­Science on 24 November. The report states the fields could start to run out even sooner if production is boosted in an effort to meet any rise in demand or deficit in supply. It notes that production in Bass Strait will increasingly move from shallow gas fields of high volume and quality to deeper fields of low volume and low quality. Federal Resources Minister Matt Canavan says the report demonstrates the need for states to lift their bans and moratoriums on on-shore gas exploration and development as soon as possible.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Browse back on Shell’s agenda

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

Shell Australia chairman Zoe Yujnovich says the company remains committed to the development of the Browse gas fields off Western Australia. There had been speculation that Shell’s sale of its remaining 13.5 per cent stake in Woodside Petroleum may see its interest in having the Browse fields developed decrease. The Browse fields were discovered over 40 years ago, with the latest plan to develop them involving linking them to the North West Shelf LNG plant by an undersea pipeline. The cost of the plan is put at $US25 billion ($A33 billion)

CORPORATES
SHELL COMPANY OF AUSTRALIA LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, CREDIT SUISSE (AUSTRALIA) LIMITED, CHEVRON CORPORATION, BG GROUP PLC

BHP to look for kicker on US shale sale

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Original article by James ThomsonMatthew Stevens
The Australian Financial Review – Page: 23 & 28 : 16-Nov-17

BHP Billiton is believed to be looking to either divest its entire US shale business in a single transaction or sell its five shale fields separately. BHP has invested more than $US20bn in the shale assets, so it will be hoping to achieve good value from the transaction. As a result, any deal could potentially include contingency payments based on the future price of crude oil. ExxonMobil is among the companies whose recent oil field acquisitions have included so-called "kicker" payments.

CORPORATES
BHP BILLITON LIMITED – ASX BHPEXXONMOBIL CORPORATIONHILCORP GROUPCONOCOPHILLIPSCARRIZO OIL AND GASJEFFERIES AND COMPANYDEUTSCHE BANK AG

US energy investors lining up $11b tilt for Santos

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Original article by Matthew Stevens
The Australian Financial Review – Page: 1 & 38 : 16-Nov-17

A global consortium of energy investors is said to be preparing to make a takeover bid for Australian-listed oil and gas producer Santos. The consortium is believed to intend to make an indicative bid of about $A5.30 per share, compared with Santo’s 2017 peak of $A4.78. Santos shares closed at $A4.38 on 15 November. The consortium, which is headed by Royal Dutch Shell’s former executive director Linda Cook, is understood to have make an initial approach to the Santos board in September. Santos had rejected a takeover bid from Scepter Partners in 2015, priced at $A6.88 per share.

CORPORATES
SANTOS LIMITED – ASX STOROYAL DUTCH SHELL PLCHARBOUR ENERGY LIMITEDENN GROUPHONY CAPITALEIG GLOBAL ENERGY PARTNERSSENEX ENERGY LIMITED – ASX SXYCHENIERE ENERGY INCORPORATEDCHRYSAORBOEING COMPANYCARGILL INCORPORATEDMARATHON OIL CORPORATIONTHE BANK OF NEW YORK MELLON CORPORATIONSCEPTER PARTNERSBHP BILLITON LIMITED – ASX BHP

China’s foot on the gas as exports boom

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Original article by Matt Chambers
The Australian – Page: 17 & 24 : 15-Nov-17

The spot price of LNG has risen by 53 per cent in the last two months, amid growing demand as China attempts to address air quality concerns by promoting alternatives to coal as an energy source. This in turn has resulted in a sharp rise in shipments from Queensland’s three LNG projects. Meanwhile, some market observers forecast that a global LNG shortage will occur earlier in the next decade than previously anticipated.

CORPORATES
SANTOS LIMITED – ASX STOROYAL DUTCH SHELL PLCORIGIN ENERGY LIMITED – ASX ORGCONOCOPHILLIPSWOODSIDE PETROLEUM LIMITED – ASX WPLENERGY EDGEENN GROUPAUSTRALIAN ENERGY MARKET OPERATOR LIMITEDAUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET