B07 Oil and Gas Extraction

Energy exports at risk as oil prices slump

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 27 : 26-Nov-14

The price of Brent crude oil is trading at $US0.7945 per barrel, having fallen to $US77.92 in mid-November 2014. David Hewitt of Credit Suisse notes that a number of market watchers are particularly bearish about the outlook for the crude oil price, with some warning that it could fall below $US60. He also says Australian-listed LNG producers would be adversely affected by continued weakness in the crude oil price, as the price of LNG is linked to the crude oil price

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, INTERNATIONAL MONETARY FUND, RBC CAPITAL MARKETS, REUTERS HOLDINGS PLC, LUPUS ALPHA COMMODITY INVESTMENT FUND, BLOOMBERG LP, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

BHP to live within its means

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 19 : 25-Nov-14

BHP Billiton has indicated that its focus will be on maximising production at its existing assets rather than pursuing large acquisitions. CEO Andrew Mackenzie has told an investor briefing that any future acquisitions are likely to be restricted to conventional oil and gas assets. BHP will also continue to seek productivity improvements and reduce capital expenditure, with plans to scale back the latter by $US600m in 2014-15 and $US1bn in 2015-16

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, HESS CORPORATION, CHEVRON CORPORATION, CITIGROUP PTY LTD

Nexus investors lash ASIC inaction

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Original article by Leo Shanahan
The Australian – Page: 23 : 20-Nov-14

Piper Alderman lawyer Amanda Banton, who represents investors in Nexus Energy opposed to its acquisition by Seven Group Holdings, has criticised the Australian Securities & Investments Commission. The watchdog has taken no action after Seven made a low offer of $A0.02 and then moved to buy the collapsed Nexus following the rejection by stockholders of the original bid. A major issue is the dual role of Don Voelte as Seven CEO and Nexus chair

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NEXUS ENERGY LIMITED – ASX NXS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PIPER ALDERMAN, AZURE CAPITAL PTY LTD, LIBERAL PARTY OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES

Gas sector buoys economy

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 9 : 13-Nov-14

PricewaterhouseCoopers forecasts that Australia’s oil and gas industry will be worth $A67bn to the national economy by 2029-30, compared with just $A32bn in the 2012-13 financial year. The firm’s report was prepared on behalf of the Australian Petroleum Production & Exploration Association (APPEA), and notes that the sector contributes more value to the economy than any other industry. APPEA CEO David Byers says the report demonstrates that gas supplies should not be reserved for domestic use

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, ENERGY SUPPLY ASSOCIATION OF AUSTRALIA LIMITED, BUSINESS COUNCIL OF AUSTRALIA

Shareholders target Voelte in Nexus bid

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Original article by Matt Chambers, Sharri Markson, Leo Shanahan
The Australian – Page: 23 : 12-Nov-14

Conglomerate Seven Group Holdings plans to take over Nexus Energy for $A180m, following the latter’s collapse after its board rejected an offer by Seven worth just $A0.02 a share. The fact that Seven CEO Don Voelte also had the role of chair at the gas group has sparked complaints by Nexus investors to the Australian Securities & Investments Commission. Legal action is being launched by stockholders such as Bechtel CEO Andrew Greig, ­Liberal Party president Richard Alston, Karoon Gas executive chair Bob Hosking and Michael Fowler, another ex-Nexus chair

CORPORATES
NEXUS ENERGY LIMITED – ASX NXS, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, KAROON GAS AUSTRALIA LIMITED – ASX KAR, BECHTEL PTY LTD, LIBERAL PARTY OF AUSTRALIA

Woodside mulls regasification to meet domestic obligation

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Original article by Paul Garvey
The Australian – Page: 19 : 10-Nov-14

The Western Australian (WA) Government currently imposes a domestic gas reservation policy on producers such as Woodside Petroleum and its joint venturers in the Browse floating LNG development. The companies are set to continue their lobbying effort against this, but are also preparing for the maintenance of the policy by considering a regasification plant in the South West region of WA. This would help them meet the mandated target of 15% of LNG output to be available to local users

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, BP PLC, PETROCHINA COMPANY LIMITED, MITSUBISHI CORPORATION, MITSUI AND COMPANY LIMITED, AGSO-GEOSCIENCE AUSTRALIA

LNG exports to quadruple in five years

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Original article by Scott Parker
The Australian Financial Review – Page: 31 : 22-Oct-14

The Commonwealth Bank’s Lachlan Shaw is upbeat about the outlook for Australia’s LNG industry, forecasting strong growth in exports over the next five years. However, he warns that high capital costs in Australia may jeopardise future LNG projects, while the price of LNG being linked to the crude oil price presents another headwind for the industry. The oil price recently reached a low of $US82.60 per barrel

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WOODSIDE PETROLEUM LIMITED – ASX WPL, ORIGIN ENERGY LIMITED – ASX ORG, EXXONMOBIL CORPORATION, FACTS GLOBAL ENERGY GROUP OF COMPANIES, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Householders’ bills tipped to soar as gas exports begin

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Original article by Esther Han
The Sydney Morning Herald – Page: 3 : 20-Oct-14

Tony Wood, director of the energy program at the Grattan Institute, says households along the eastern seaboard will pay as much as $A435 per annum more for gas, once feedstock is diverted to the emerging LNG exporting industry in Queensland. Wholesale prices are tipped to grow 100% to $A9 a gigajoule. Australian Council of Social Service CEO Cassandra Goldie warns that the increases will affect those users the most who have the lowest incomes. However Wood argues that job creation and other benefits mean governments should not intervene, and should instead compensate low-wage earners

CORPORATES
GRATTAN INSTITUTE, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, BIS SHRAPNEL PTY LTD, ENERGY AND WATER OMBUDSMAN (NSW) LIMITED

MUA strike threatens Gorgon gas project

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Original article by Andrew Burrell
The Australian – Page: 22 : 14-Oct-14

Talks on a new enterprise bargaining agreement between Mermaid Marine and the Maritime Union of Australia (MUA) have become deadlocked, triggering a strike. The MUA says members will take protected industrial action for five days from 15 October 2014. A 10-day strike had been cancelled by the MUA in July, when it appeared that progress could be made. Among the operations that could be affected are the Gorgon LNG project and iron ore shipments by BHP Billiton, Rio Tinto and Fortescue Metals Group

CORPORATES
MERMAID MARINE AUSTRALIA LIMITED – ASX MRM, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, MARITIME UNION OF AUSTRALIA, GORGON JOINT VENTURE, CHEVRON AUSTRALIA PTY LTD, CHEVRON CORPORATION, MOBIL AUSTRALIA RESOURCES COMPANY PTY LTD, EXXONMOBIL CORPORATION, SHELL DEVELOPMENT (AUSTRALIA) PTY LTD, ROYAL DUTCH SHELL PLC, ASX LIMITED – ASX ASX

Glencore tilts at Rio expansion

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 11 : 8-Oct-14

Takeover speculation prompted a rally in the Australian-listed shares of Rio Tinto on 7 October 2014, with the stock rising 4.3 per cent to $A60.07. The resources group rebuffed a takeover approach from Glencore in August, and has indicated that it is not holding any merger talks with the commodities trader and miner. However, Glencore CEO Ivan Glasenberg is believed to be keen to pursue a merger with Rio Tinto

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, XSTRATA AG, BHP BILLITON LIMITED – ASX BHP, LONDON STOCK EXCHANGE, UBS HOLDINGS PTY LTD, ALUMINIUM CORPORATION OF CHINA LIMITED