B07 Oil and Gas Extraction

Miner’s spin-off has bumpy birth

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 11 : 20-Aug-14

BHP Billiton has reported a 2013-14 underlying profit of $US13.4bn, which is 10 per cent higher than previously but lower than most analysts had expected. Meanwhile, UK investors have responded negatively to the group’s proposal to spin off non-core assets into a new listed company. A large sell-off of the new company’s shares is expected, as UK investors are concerned by the fact that it will be listed in Australia and South Africa, rather than the UK

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BILLITON PLC

Energy report urges job reform

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Original article by Amos Aikman
The Australian – Page: 18 : 18-Aug-14

A new study, "Heading North: The Importance of Labour Mobility in Developing Northern Australia", has been commissioned by the Australian Petroleum Production & Exploration Association special interest group. It will argue before the federal parliament’s Joint Select Committee on Northern Australia on 18 August 2014 that state and federal governments must do more to support flexible staffing solutions. These include "fly in, fly out" rosters, more skilled immigration and the use of "457" visas. Such measures could unlock a potential $A180bn in capital investments

CORPORATES
AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, AUSTRALIA. JOINT SELECT COMMITTEE ON NORTHERN AUSTRALIA

A leaner BHP is taking shape

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Original article by Barry FitzGerald, Sarah-Jane Tasker
The Australian – Page: 17 : 18-Aug-14

BHP Billiton CEO Andrew Mackenzie is rolling out his "four pillars" strategy of concentrating on the core iron ore, coal, copper and petroleum divisions. A potential hiving-off of other assets into a separately-listed entity will be discussed at the 2013-14 results presentation on 19 August 2014, at which BHP is also tipped to unveil a profit rise of 27% to $US13.8bn ($A14.8bn). The 12-month distribution is forecast to be lifted to above $US1.20 from $US1.16 previously. However a stock repurchasing scheme worth up to $US5bn is now less likely, due to the spin-off move

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CITIGROUP PTY LTD, PENGANA CAPITAL LIMITED

AGL granted CSG fracking licence

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Original article by Geoff Winestock
The Australian Financial Review – Page: 9 : 7-Aug-14

The New South Wales (NSW) Government in 2012 ended a ban on hydraulic fracturing for coal seam gas wells that had been imposed in 2011, provided that companies use new and safer technology. The first such approval has now been issued by NSW Energy Minister Anthony Roberts to AGL Energy, which must also however relinquish the licence it held for a quarter of the previous exploration area

CORPORATES
AGL ENERGY LIMITED – ASX AGK, NEW SOUTH WALES. DEPT OF ENERGY, UTILITIES AND SUSTAINABILITY, METGASCO LIMITED – ASX MEL, THE GREENS NSW INCORPORATED

Fosun’s cash offer wins Roc Oil

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Original article by Matt Chambers
The Australian – Page: 18 : 5-Aug-14

Fund management firm Allan Gray, which has a 19% stake in Australian-listed Roc Oil, has given its support to a takeover offer worth $A474m. The suitor is private Chinese group Fosun, which will pay $A0.69 a share in cash. Allan Gray had previously lobbied against an attempt by Roc to stage a merger of equals with Horizon Oil that required no stockholder vote, and it motivated 51% of Roc’s investors to demand a say on the proposal. Roc will now be delisted by Fosun, and on 4 August 2014 the stock closed $A0.045 higher at $A0.675. Horizon shares fell $A0.025 to $A0.345

CORPORATES
ROC OIL COMPANY LIMITED – ASX ROC, HORIZON OIL LIMITED – ASX HZN, FOSUN INTERNATIONAL LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, OSAKA GAS COMPANY, ASX LIMITED – ASX ASX

Strike threat to Qld $70b LNG debut

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 4-Aug-14

Three separate LNG exporting plant projects worth a combined $A70bn are being pursued in the Gladstone region of Queensland by consortia led respectively by Santos, Origin Energy and BG Group. The latter has made the most progress, but is now also likely to be the most affected by potential strikes as the Construction, Forestry, Mining & Energy Union has applied for protected industrial action. Workers may down tools from 7 August 2014 over talks on a new enterprise bargaining agreement. They seek a "four weeks on, one week off" roster instead of the current "three weeks on, one week off’

CORPORATES
BG GROUP PLC, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, QUEENSLAND CURTIS LNG PTY LTD, AUSTRALIA PACIFIC LNG LIMITED, GLADSTONE LNG PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, BECHTEL PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

Woodside buyback in doubt

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 & 23 : 31-Jul-14

Woodside Petroleum shareholders will vote on a proposed share buyback at an extraordinary general meeting on 1 August 2014. The deal to buy $US2.68bn ($A2.85bn) worth of shares from Royal Dutch Shell must be supported by 75 per cent of votes, but a number of superannuation funds are expected to oppose it. There is concern that the selective buyback treats Shell more favourably than other Woodside shareholders

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, PLATO INVESTMENT MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, ISS PROXY AUSTRALIA, OWNERSHIP MATTERS PTY LTD, CGI GLASS LEWIS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, WESTFIELD CORPORATION – ASX WFD, STANDARD AND POOR’S ASX 300 INDEX

Woodside gains the backing of ASA

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Original article by Barry FitzGerald
The Australian – Page: 17 : 28-Jul-14

Investors in Woodside Petroleum will on 1 August 2014 vote on the proposed stock repurchasing move worth $A2.85bn that has been triggered by Royal Dutch Shell’s partial divestment. The latter is reducing its stake from 23.1% to 4.5%, and Woodside wants to buy back 9.5% at $A36.49 a share. The company has gained the backing, with some qualifications, of the Australian Shareholders Association. However it must still address concern by institutional investors such as superannuation funds at the lack of franking credits. On 25 July the stock closed at $A42.70

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

BHP surge sets stage for buyback

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Original article by Amanda Saunders
The Australian Financial Review – Page: 19 & 24 : 24-Jul-14

BHP Billiton expects its iron ore output for 2014-15 to top 245 million tonnes, after production in the Pilbara region of Western Australia for 2013-14 rose to about 225 million tonnes. Most analysts had forecast that output for 2014-15 will be around 230 million tonnes. Glyn Lawcock of UBS says the upbeat production forecast could prompt BHP to reveal a share buyback program when its 2013-14 financial results are released in August 2014

CORPORATES
BHP BILLITON LIMITED – ASX BHP|UBS HOLDINGS PTY LTD|RIO TINTO LIMITED – ASX RIO|FORTESCUE METALS GROUP LIMITED – ASX FMG|VALE SA|DEUTSCHE BANK AG|PENGANA CAPITAL LIMITED

PNG project pumps up Oil Search

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Original article by Matt Chambers
The Australian – Page: 18 : 23-Jul-14

Peter Botten, MD of Australian-listed Oil Search, on 22 July 2014 issued its output data for the second quarter of calendar 2014. Production was up 120% to 3.69 million barrels of oil equivalent, mainly due to the first shipments by the $US19bn ($A20bn) Papua New Guinea LNG project in which the energy group partners Santos and lead operator ExxonMobil. Oil Search’s revenue also rose some 100% to reach $US339.7m in the three months. On the day its stock closed $A0.04 higher at $A9.54

CORPORATES
OIL SEARCH LIMITED – ASX OSH|SANTOS LIMITED – ASX STO|PAPUA NEW GUINEA LNG PROJECT|EXXONMOBIL CORPORATION|DEUTSCHE BANK AG|INTEROIL CORPORATION|TOTAL SA