B07 Oil and Gas Extraction

Gas explorers respond to PM’s demands

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Original article by Paul Garvey
The Australian – Page: 17 : 6-Jun-17

New data shows that Australian gas producers spent $A118.5m on onshore gas exploration during the March 2017 quarter, which is 20 per cent higher than previously. However, expenditure on offshore oil and gas ­exploration fell to $A221.8m, which is the lowest level since late 2005. Spending on mineral exploration rose to its highest level in two years, although the gold sector’s expenditure fell by nearly 15 per cent.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, ROYAL DUTCH SHELL PLC, PETROCHINA COMPANY LIMITED, QUEENSLAND GAS COMPANY LIMITED, WORLEYPARSONS LIMITED – ASX WOR, AGL ENERGY LIMITED – ASX AGL

AGL bid to import LNG heats up

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Original article by Matt Chambers
The Australian – Page: 17 & 18 : 5-Jun-17

AGL Energy is expected to name the preferred site for its proposed LNG import terminal within a matter of weeks. Sites in South Australia, New South Wales and Victoria are all said to be under consideration for the terminal, which is expected to cost between $200 million and $A300 million, with Western Port Bay in Victoria considered a possible option. AGL CEO Andy Vesey is understood to want to commence construction of the terminal in 2019, and for it to be operational in 2020-21.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, COUNCIL OF AUSTRALIAN GOVERNMENTS, CHENIERE ENERGY INCORPORATED, QIC LIMITED, ENERGYAUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

ExxonMobil shareholders rebel on climate costs

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Original article by Steven Mufson
The Australian Financial Review – Page: 27 : 2-Jun-17

ExxonMobil shareholders have voted in favour of a motion that requires the oil and gas company to disclose the impact that measures aimed at addressing climate change are having on its business model. Thomas Napoli, of the New York Common Retirement Fund, which co-sponsored the motion, says that climate change is one of the biggest "long-term risks" to investments within its portfolio. BlackRock and State Street Global Advisors are both understood to have voted in favour of the motion. Originally published in "The Washington Post".

CORPORATES
EXXONMOBIL CORPORATION, NEW YORK COMMON RETIREMENT FUND, BLACKROCK INCORPORATED, STATE STREET GLOBAL ADVISORS INCORPORATED, THE VANGUARD GROUP INCORPORATED, BP PLC, TOTAL SA, CONOCOPHILLIPS, ROYAL DUTCH SHELL PLC

Trump’s eyes on Alaskan riches

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Original article by Jim Carlton
The Australian – Page: 31 : 2-Jun-17

ConocoPhillips and other oil companies have welcomed a move by US President Donald Trump to undertake a review of exploration and production in protected areas of Alaska. The Trump administration has commissioned new geological assessments of Alaska’s National Petroleum Reserve and part of a wildlife refuge, although it will face opposition from environmentalists. Originally published in "The Wall Street Journal".

CORPORATES
CONOCOPHILLIPS, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED STATES. DEPT OF THE INTERIOR, ALASKA WILDERNESS LEAGUE

Santos cuts intake of gas amid export curb threat

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Original article by Matt Chambers
The Australian – Page: 20 : 1-Jun-17

The Gladstone LNG project reduced its average daily gas intake to 723 terajoules in May 2017, to the lowest level in a year, while the intake was 20 per cent lower than in March. However, GLNG operator Santos has declined to comment on whether the Federal Government’s proposal to impose LNG export controls contributed to the reduced gas intake. Meanwhile, Nik Burns of UBS says GLNG is unlikely to meet the most bullish forecasts for total exports of six million tonnes in 2017.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, UBS HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, TOTAL SA, PETRONAS GAS BHD, KOREA GAS CORPORATION

BHP should sell its US shale assets if price is right: analyst

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Original article by Peter Ker
The Australian Financial Review – Page: 11 : 9-May-17

Deutsche Bank’s Paul Young values BHP Billiton’s US shale assets at around $US6.3bn at present. However, he adds that based on the value of recent deals in the sector, BHP could potentially gain around $US9bn for its Eagle Ford and Permian shale assets. He suggests that BHP should hold off divesting the assets until it can get such a price for them. Young favours using the proceeds of such a sale to reduce debt and invest in conventional oil assets and mining projects. Tribeca Investment Partners also recently advocated the sale of BHP’s US shale assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, TRIBECA INVESTMENT PARTNERS PTY LTD, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION

Export rules will hit investment: Barnett

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Original article by Paul Garvey
The Australian – Page: 20 : 4-May-17

Former Western Australian premier Colin Barnett has questioned the merits of the Federal Government’s plans to impose LNG export controls. He warns that the policy will do little to address the energy crisis on the nation’s east coast. Barnett argues that it will instead harm Australia’s international reputation and increase sovereign risk, which will in turn impact on future investment in Australia.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, AUSTRALIAN LABOR PARTY, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Chevron tax ruling to ‘hit investment’

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Original article by Matt Chambers
The Australian – Page: 22 : 3-May-17

Chevron’s chief financial officer, Patricia Yarrington, has told investors in the US that the oil and gas group may appeal a Federal Court of Australia ruling on the tax status of a $A2.5bn inter-company loan. She warned that the ruling will have implications for international transfer pricing guidelines, while it is likely to impact on future investment in Australia. However, Chevron’s Stephen Green has welcomed the findings of a review which recommended that any changes to the Petroleum Resource Rent Tax should not be retrospective.

CORPORATES
CHEVRON CORPORATION, CHEVRON AUSTRALIA PTY LTD, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN TAXATION OFFICE

WA minister slams gas pipeline

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 26-Apr-17

Prime Minister Malcolm Turnbull recently signalled that the Federal Government is considering a proposal to build a gas pipeline linking Western Australia to the east coast. The transcontinental gas pipeline was mooted by former state premier Colin Barnett, but WA Mines Minister Bill Johnston says it would require other states to introduction policies requiring a certain proportion of gas to be reserved for domestic use. Johnston also says the State Government is open to discussions with the mining sector regarding the iron ore levy, although he has ruled out abolishing it.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, HIGH COURT OF AUSTRALIA, VIMY RESOURCES LIMITED – ASX VMY, TORO ENERGY LIMITED – ASX TOE, CAMECO CORPORATION, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIAN LABOR PARTY

Energy giants to be grilled over tax minimisation tactic

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Original article by Ben Butler
The Australian – Page: 17 & 20 : 26-Apr-17

Executive from major oil and gas producers will appear before the Senate economics reference committee on 28 April 2017. They include executives from Chevron, which recently lost a transfer pricing dispute with the Australian Taxation Office regarding a $A2.5bn inter-company loan. The case centered on the interest rate on the loan made by US-based Chevron to its Australian subsidiary, which is expected to prompt the ATO to issue new guidelines regarding interest rates for such loans.

CORPORATES
CHEVRON CORPORATION, CHEVRON AUSTRALIA PTY LTD, AUSTRALIAN TAXATION OFFICE, EXXONMOBIL CORPORATION, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, BP PLC, ROYAL DUTCH SHELL PLC, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, TAX JUSTICE NETWORK, GETUP LIMITED, MINTER ELLISON, FEDERAL COURT OF AUSTRALIA, HIGH COURT OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, CLAYTON UTZ