ENERGY INDUSTRIES – AUSTRALIA

Harbour raises bid for Santos to $14.5bn

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Original article by Matt Chambers
The Australian – Page: 19 : 22-May-18

Shares in Santos closed 1.8 per cent higher on 21 May at $A6.36, in response to an improved takeover bid from Harbour Energy. The US group increased its bid from the initial offer of $US4.98 per share to $US5.21, which equates to $A6.95 based on the current exchange rate. Harbour Energy has advised that its new offer is "best and final", and it is conditional on Santos agreeing to hedge its oil production. Santos has told shareholders to take no action until its board considers the revised offer.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ARGO INVESTMENTS LIMITED – ASX ARG, KATANA ASSET MANAGEMENT LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, EIG GLOBAL ENERGY PARTNERS, ROYAL DUTCH SHELL PLC

Santos shares slip as Harbour stands firm

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 18-May-18

Analysts differ on the merits of Harbour Energy’s bid for Santos, after the suitor submitted a binding offer for the oil and gas group. Harbour Energy has formally offered $US4.98 per share, which equates to about $A6.63 per share and is the same price as it had initially proposed. James Byrne of Citigroup and Andrew Hodge of Macquarie Equities expect Santos directors to reject the bid, although the Hayberry Global Fund’s Matthew Blumberg says the bid is "probably fair". Santos shares closed 1.9 per cent lower at $A6.20 on 17 May.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, CITIGROUP PTY LTD, MACQUARIE EQUITIES LIMITED, HAYBERRY GLOBAL FUND, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, EIG GLOBAL ENERGY PARTNERS, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

No deal on takeover, says Santos

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 18 : 17-May-18

Santos has downplayed media reports which suggested that Harbour Energy has struck a deal with two Chinese investors in the oil and gas group. Santos has indicated that the incorrect media reports were based on a mistranslation of ENN Holdings’ Shanghai Stock Exchange announcement. ENN and Hony Capital have a combined stake of 15.1 per cent in Santos. Harbour Energy has yet to make a formal offer for Santos, although it has undertaken due diligence.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, SHANGHAI STOCK EXCHANGE, WOOD MACKENZIE, MORGAN STANLEY AND COMPANY INCORPORATED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Co-operative Harbour advances Santos bid

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Original article by Matt Chambers
The Australian – Page: 20 : 16-May-18

Harbour Energy has secured an indirect stake in Santos of 15.1 per cent after striking an agreement with the oil and gas group’s Chinese shareholders, ENN and Hony Capital. Santos CEO Kevin Gallagher has advised that Harbour Energy has completed due diligence, although it has yet to make a formal offer for the oil and gas group. Santos shares closed at $A6.23 on 15 May, and analysts say Harbour Energy may need to increase its initial offer if it opts to make a formal bid.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, CITIGROUP PTY LTD, EIG GLOBAL ENERGY PARTNERS, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Barossa fires up Santos hopes of Darwin LNG

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Original article by Paul Garvey
The Australian – Page: 20 : 24-Apr-18

The partners in the Barossa gas field have committed to undertaking front-end engineering and design work on the project, with a view to making a final investment decision by the end of 2019. The partners propose to process gas from Barossa at the Darwin LNG plant, which will be underutilised when the Bayu-Undan gas field is depleted in coming years. Santos has a 25 per cent stake in the Barossa gas field and an 11.5 per cent stake in the Darwin LNG project.

CORPORATES
SANTOS LIMITED – ASX STO, CONOCOPHILLIPS, SK GROUP, HARBOUR ENERGY LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC

Woodside cool on play for rival Santos

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 16 : 19-Apr-18

Woodside Petroleum has advised that its sales rose by 18 per cent to $US1.169bn in the March 2018 quarter. The oil and gas group’s production rose from 21.4 million barrels of oil equivalent in the March 2017 quarter to 22.2 million boe, with the result being boosted by the contribution from its 13 per cent stake in the Wheatstone LNG project. CEO Peter Coleman has downplayed speculation that Woodside could bid for Santos, stressing that the Browse and Scarborough gas fields are its priorities.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, CHEVRON CORPORATION, HARBOUR ENERGY LIMITED, JP MORGAN AUSTRALIA LIMITED

NT gives the go-ahead for gas fracking

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 18-Apr-18

Santos and Origin Energy have advised that they will resume gas exploration in the Northern Territory after Chief Minister Michael Gunner agreed to scrap a ban on hydraulic fracturing. However, fracking will still be prohibited within 49 per cent of the Northern Territory, while individuals and groups will be able to oppose any applications for exploration or production licences. A government-commissioned inquiry recently concluded that the environmental risks of fracking can be mitigated.

CORPORATES
SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, JEMENA LIMITED, NORTHERN TERRITORY. DEPT OF THE CHIEF MINISTER, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, GREENPEACE

Policy uncertainty hits oil and gas juniors

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Original article by Paul Garvey
The Australian – Page: 17 & 18 : 16-Apr-18

Fund managers argue that the share prices of smaller oil and gas producers are underperforming due to lack of certainty regarding energy policy in Australia. They say the positive outlook for east coast gas prices is not being reflected in share prices in the sector, which is expected to experience a supply deficit in coming years. Cooper Energy MD David Maxwell says there is strong evidence to suggest that east coast gas prices will remain at elevated levels for some time.

CORPORATES
COOPER ENERGY LIMITED – ASX COE, FLINDERS ASSET MANAGEMENT PTY LTD, BEACH ENERGY LIMITED – ASX BPT, LATTICE ENERGY LIMITED, SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, AWE LIMITED – ASX AWE, MITSUI AND COMPANY LIMITED, TAYLOR COLLISON LIMITED

Key PNG gasfield upgraded: Oil Search

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Original article by Paul Garvey
The Australian – Page: 21 : 13-Apr-18

Oil Search and ExxonMobil have upgraded the contingent resource for the P’nyang gas field in Papua New Guinea to 3.51 trillion cubic feet of gas. Andrew Hodge of Macquarie Group says the upgrade makes it more likely that an expansion of the PNG LNG project will proceed. Oil Search has a 38.5 per cent stake in the P’nyang gas field, and MD Peter Botten notes that the PNG LNG project’s partners now have access to an estimated 11 trillion cubic feet of gas when the undeveloped Elk-Antelope field is taken into account.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, EXXONMOBIL CORPORATION, MACQUARIE GROUP LIMITED – ASX MQG

Cook tries to ease Santos bid tax concerns

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Original article by Matt Chambers
The Australian – Page: 19 & 30 : 6-Apr-18

Harbour Energy CEO Linda Cook has given her assurance that Santos will remain an Australian company if Harbour Energy’s $A13.5 billion bid for the oil and gas company succeeds. Responding to concerns that Harbour Energy is registered in the Cayman Islands and that corporate tax from Santos might be reduced if Harbour Energy assumes control of it, Cook stressed that the company Harbour Energy has established to acquire Santos is Australian, and therefore subject to the same amount of tax that Santos pays at the moment.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN GROUP, HONY CAPITAL, ROYAL DUTCH SHELL PLC, CHRYSAOR, MORGAN STANLEY AUSTRALIA LIMITED, JP MORGAN AUSTRALIA LIMITED