B07 Oil and Gas Extraction

Bass gas in Exxon’s frame due to onshore constraint

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Original article by Matt Chambers
The Australian – Page: 20 : 3-Oct-17

The rising price of gas on Australia’s east coast and restrictions on onshore production has prompted renewed exploration activity in Bass Strait. ExxonMobil, Origin Energy and Cooper Energy intend to undertake new drilling programs. ExxonMobil will drill two deepwater wells in the Dory prospect in the offshore Gippsland Basin. The company has previously warned that production at the Longford gas plant will fall in 2018 as its current output is not sustainable.

CORPORATES
EXXONMOBIL CORPORATION, ORIGIN ENERGY LIMITED – ASX ORG, COOPER ENERGY LIMITED – ASX COE, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, LIBERTY PETROLEUM

Beach bulks up with $1.6bn Lattice deal

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 29-Sep-17

Beach Energy’s oil and gas production will be increased by about 150 per cent as a result of its deal to acquire the Lattice Energy assets of Origin Energy. Beach will significantly increase its debt to finance the $A1.585bn acquisition of the conventional oil and gas assets, but MD Matt Kay is confident that the company will be net cash positive by 2021. Origin had been weighing up both an IPO and trade sale of Lattice Energy, and CEO Frank Calabria says an IPO had remained under consideration until the deal with Beach was finalised.

CORPORATES
BEACH ENERGY LIMITED – ASX BPT, ORIGIN ENERGY LIMITED – ASX ORG, LATTICE ENERGY LIMITED, RBC CAPITAL (AUSTRALIA) LIMITED, WOOD MACKENZIE, SEVEN GROUP HOLDINGS LIMITED – ASX SVW

India-Exxon deal to cut gas price bodes ill

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Original article by Paul Garvey
The Australian – Page: 20 : 12-Sep-17

The global oversupply of LNG has prompted India-based Petronet to renegotiate its 20-year Gorgon LNG supply contract with ExxonMobil. Petronet is believed to have secured a deal to reduce the price it pays by $US1.10 to $US1.30 per unit. Industry analysts say other Gorgon buyers may also seek to renegotiate their supply contracts, as part of a global trend for LNG buyers to do so. Saul Kavonic of Wood Mackenzie analyst says the biggest risk for Australian LNG producers will be if major Asian buyers such as Japan and China seek to renegotiate supply contracts.

CORPORATES
EXXONMOBIL CORPORATION, PETRONET INDIA LIMITED, GORGON JOINT VENTURE, WOOD MACKENZIE, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, RBC CAPITAL MARKETS

Santos to divert gas

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 & 28 : 8-Sep-17

Santos has pre-empted the Federal Government’s decision on triggering the Australian Domestic Gas Security Mechanism by agreeing to redirect 30 petajoules of gas from the Gladstone LNG export project to the domestic market in 2018 and 2019. The LNG buyer that has agreed to accept reduced exports is believed to be either Petronas or Korea Gas Company, which are partners in the GLNG project. Santos also recently struck a deal to supply gas to the Pelican Point power station in South Australia. Wood Mackenzie estimates that the latest deal will ensure that the gas shortfall on the east coast will be minimal in 2018.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, PETRONAS GAS BHD, KOREA GAS CORPORATION, WOOD MACKENZIE, TOTAL SA, SHELL COMPANY OF AUSTRALIA LIMITED, QUEENSLAND CURTIS LNG PTY LTD, ENGIE SA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Shell chief expects gas export clampdown

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Original article by Andrew White
The Australian – Page: 17 & 20 : 7-Sep-17

Shell Australia chair Zoe Yujnovich says the Federal Government is likely to implement its Australian Domestic Gas Supply Mechanism in 2018. She forecasts that the Australian Energy Market Operator will announce a structural shortfall of gas in the next few weeks, although she adds that the ADGSM is unlikely to have much impact on Shell’s LNG exports. Yujnovich adds that there are indications of downward pressure on gas prices.

CORPORATES
SHELL COMPANY OF AUSTRALIA LIMITED, SANTOS LIMITED – ASX STO, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Santos to cap Gladstone gas exports

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Original article by Matt Chambers
The Australian – Page: 22 : 25-Aug-17

Oil and gas producer Santos has posted a 2017 interim net loss of $US506m ($A642m), following a $US1.1bn loss for the previous corresponding period. However, it has booked an underlying profit of $US156m, compared with a $A5m loss previously. Revenue rose from $US1.21bn to $US1.5bn. MD ‘Kevin Gallagher says Santos is poised to announce additional domestic gas supply contracts, while it intends to limit the Gladstone LNG project’s annual export volumes to six million tonnes until the mid-2020s.

CORPORATES
SANTOS LIMITED – ASX STO

Shareholders to get shale sale cash within two years, says BHP

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Original article by Matt Chambers
The Australian – Page: 27 : 24-Aug-17

BHP Billiton will aim to divest its US shale assets within two years, according to CFO Peter Beaven. CEO Andrew Mackenzie had previously indicated that the assets would be sold "relatively quickly". Beaven also said the proceeds of the sale are likely to be distributed to shareholders. Analysts differ regarding the valuation of the shale assets, with sale price forecasts generally ranging from $US7bn to $US10bn. The shale assets currently have a book value of $US14bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MORGANS FINANCIAL LIMITED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, ELLIOTT MANAGEMENT CORPORATION, TUDOR PICKERING HOLT AND COMPANY LLC, ANADARKO PETROLEUM CORPORATION

Woodside has offshore platform lithium-ion battery breakthrough

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 : 22-Aug-17

Oil and gas producer Woodside Petroleum will reduce its energy costs and carbon emissions by installing a lithium-ion battery storage system on one of the North West Shelf’s offshore platforms. CEO Peter Coleman says Woodside considered renewable energy options before opting to replace one of the gas turbine generators on the Goodwyn offshore platform with battery storage. The battery system is expected to reduce the platform’s carbon emissions by around five per cent, and Woodside may roll out the technology at other NWS platforms if it proves to be successful.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ABB GROUP

Shake-up looming for North West Shelf

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Original article by Paul Garvey
The Australian – Page: 19 : 17-Aug-17

Woodside Petroleum has posted a 2017 interim net profit of $US507m, which is 49 per cent higher than previously. Shareholders will receive a half-year dividend of $US0.49 per share, an increase of 44 per cent. Meanwhile, CEO Peter Coleman has indicated that Woodside would be interested in increasing its stake in the North West Shelf project if some of its partners opt to sell down their interest in it as the LNG plant begins shifting its focus to toll-treating gas from third parties.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, MACQUARIE GROUP LIMITED – ASX MQG

Santos deflated by $880m in impairments

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Original article by Matt Chambers
The Australian – Page: 19 : 16-Aug-17

Santos has advised that its 2017 half-year accounts will include after-tax impairment charges totalling $US690m ($A880m). This includes a $US870m write-down in the value of its 30 per cent stake in the Gladstone LNG project, which was prompted by a downgrade in the group’s oil price assumptions for the next five years. The write-downs will be offset by a $US330m after-tax write-back associated with its Cooper Basin assets. Deutsche Bank expects Santos to post an underlying interim net profit of $US121.6m.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, DEUTSCHE BANK AG, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, AWE LIMITED – ASX AWE, RBC CAPITAL MARKETS, MACQUARIE GROUP LIMITED – ASX MQG, ENGIE SA