ENERGY INDUSTRIES – AUSTRALIA

Beach watchful amid AWE takeover war

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 : 1-Feb-18

The board of AWE Limited has given Mineral Resources three days to match the $A602m cash offer from rival suitor Mitsui. Meanwhile, Beach Energy CEO Matt Kay has declined to comment on whether his company could join in the bidding war for AWE. The two companies jointly own the Waitsia onshore gas field in Western Australia, and Kay says Beach has no preference regarding its future partner in the project. However, he adds that Beach is monitoring the takeover battle to ensure that the interests of its shareholders are protected.

CORPORATES
AWE LIMITED – ASX AWE, MINERAL RESOURCES LIMITED – ASX MIN, BEACH ENERGY LIMITED – ASX BPT, MITSUI AND COMPANY LIMITED, CHINA ENERGY RESERVE AND CHEMICAL GROUP COMPANY LIMITED, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NETWORK INVESTMENT HOLDINGS PTY LTD, DEUTSCHE BANK AG, LATTICE ENERGY LIMITED, ORIGIN ENERGY LIMITED – ASX ORG

AWE expected to hand MinRes rejection notice

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Original article by Paul Garvey
The Australian – Page: 20 : 31-Jan-18

AWE Limited’s board is tipped to declare its support for Mitsui’s cash offer of $A0.95 per share on 31 January. Rival suitor Mineral Resources will then have three days to lift its cash and scrip bid of $A0.83 per share. AWE shares closed at $A0.975 on 30 January, after rising to $A0.99 on the previous day. The third bidder for AWE, China Energy Reserve & Chemicals Group, is not expected to increase its offer.

CORPORATES
AWE LIMITED – ASX AWE, MITSUI AND COMPANY LIMITED, MINERAL RESOURCES LIMITED – ASX MIN, CHINA ENERGY RESERVE AND CHEMICAL GROUP COMPANY LIMITED, CANACCORD GENUITY (AUSTRALIA) LIMITED

Santos’ full-year sales up 20pc

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 38 : 25-Jan-18

Oil and gas group Santos has advised that its sales rose 14 per cent in the December 2017 quarter, to $US861bn ($A1.07bn), while sales for the calendar year were up 20 per cent to $US3.1bn. Total production for the year was 3.4 per cent lower than previously at 59.5 million barrels of oil equivalent, although it was at the higher end of the company’s guidance. Santos still expects its output for 2018 to be within the range of 55 million to 60 million boe.

CORPORATES
SANTOS LIMITED – ASX STO, JP MORGAN AUSTRALIA LIMITED, HARBOUR ENERGY LIMITED

Woodside revs up China gas push

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 19 : 19-Jan-18

Woodside Petroleum has advised that it produced 21.9 million barrels of oil equivalent during the December 2017 quarter, which is 7.9 per cent lower than the previous corresponding period. Revenue fell by 6.9 per cent year-on-year to $US939m ($A1.2bn). Meanwhile, some analysts say Woodside’s production guidance of 85 million to 90 million boe for 2018 is lower than expected. CEO Peter Coleman has indicated that Woodside will expand its LNG marketing office in China amid growing Chinese demand for gas.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, PETROCHINA COMPANY LIMITED, JP MORGAN AUSTRALIA LIMITED, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Oil Search reassures on Alaskan project funding

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 15-Dec-17

Oil Search CEO Peter Botten says a recent $US400m deal to acquire stakes in several oil fields in Alaska was necessary due to the expected long delay in commencing each phase of its LNG project in Papua New Guinea. He has stressed that the investment in Alaska will have no impact on its commitment to the PNG LNG project. He has also indicated that Oil Search will not need to undertake an equity raising to finance either project.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, REPSOL SA

Gas price plunge after exporters toe PM’s line

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Original article by Matt Chambers
The Australian – Page: 1 & 2 : 13-Dec-17

A new report shows that wholesale gas prices on the east coast have fallen by up to 50 per cent since the Federal Government flagged plans to impose LNG export controls in order to boost domestic gas supplies. The Australian Competition & Consumer Commission will release the second report on its investigation into the east coast gas market on 13 December. The report notes that rather than a forecast gas shortage of up to 107 petajoules in 2018, there is the potential for a surplus of around 20 petajoules as LNG producers redirect export volumes to the domestic market.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ROYAL DUTCH SHELL PLC, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, INCITEC PIVOT LIMITED – ASX IPL, AGL ENERGY LIMITED – ASX AGL

Mineral Resources in scrip offer for AWE

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Original article by Matt Chambers
The Australian – Page: 19 : 12-Dec-17

Shares in Mineral Resources closed eight per cent lower at $A16.39 on 11 December after it launched a $A510m takeover bid for AWE Limited. The scrip bid was initially pitched at $A0.80 per share, but the downturn in Mineral Resources’ stock reduced the value of its bid to $A0.73, in line with the rival bid from China Energy Reserve & Chemical Group. Mineral Resources MD Chris Ellison says AWE’s stake in the Waitsia gas field is of primary interest to his company, both to supply its own operations and Western Australian gas users.

CORPORATES
AWE LIMITED – ASX AWE, MINERAL RESOURCES LIHIR PTY LTD, CHINA ENERGY RESERVE AND CHEMICAL GROUP, ORIGIN ENERGY LIMITED – ASX ORG, LATTICE ENERGY LIMITED, BEACH ENERGY LIMITED – ASX BPT, SHA ENERGY, QUADRANT ENERGY PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL

Suitor plots east coast for AWE’s gas

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 11-Dec-17

Kevin Gao, the Australian business manager of China Energy Reserve & Chemicals Group, stresses that supplying the Western Australian gas market will be the Chinese group’s priority if its takeover bid for AWE Limited succeeds. He has downplayed concerns that CERCG aims to primarily supply the Chinese market via its $A463m hostile bid. Gao adds that gas from the Waitsia gas field in the Perth Basin could potentially be shipped to Australia’s east coast if supply is surplus to demand in WA. CERCG is offering $A0.73 per share for AWE.

CORPORATES
AWE LIMITED – ASX AWE, CHINA ENERGY RESERVE AND CHEMICAL GROUP, UBS HOLDINGS PTY LTD, HIGHBURY PARTNERSHIP PTY LTD, ARGONAUT SECURITIES PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Shell in $2.2bn energy selldown

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Original article by Bridget Carter, Matt Chambers
The Australian – Page: 17 : 14-Nov-17

Royal Dutch Shell is no longer a substantial shareholder in Woodside Petroleum, after selling a $A2.23bn parcel of shares in the oil and gas group. The transaction has reduced Shell’s stake from around 13 per cent to 4.8 per cent, and was part of its strategy of divesting $A30bn worth of assets over three years. Shell’s stake in Woodside has been progressively reduced from about 34 per cent since 2010, and the latest sell-down has capitalised on a rally in the crude price in recent months. Woodside shares closed $A0.33 lower at $A32.24 on 13 November.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, BHP BILLITON LIMITED – ASX BHP, BG GROUP PLC

Santos places Narrabri gas back in frame

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 10-Nov-17

Santos has advised that the Narrabri coal-seam gas project is among three growth options for the listed oil and gas producer. The $A3.6bn project had been declared a non-core asset in 2016, but Santos has advised that it is now one of six core assets. MD Kevin Gallagher says the Narrabri project has become viable given concerns about domestic gas supply and prices, although he adds that it may take until late 2018 or early 2019 to secure environmental approval from the New South Wales government. Santos is also considering an expansion of the Papua New Guinea LNG plant and development of the Caldita-Barossa field in the Timor Sea.

CORPORATES
SANTOS LIMITED – ASX STO, EASTERN STAR GAS LIMITED, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, RBC CAPITAL MARKETS, CONOCOPHILLIPS, EXXONMOBIL CORPORATION, OIL SEARCH LIMITED – ASX OSH