ENERGY INDUSTRIES – AUSTRALIA

Mega-project days over: Exxon

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 1-Dec-16

ExxonMobil Australia chairman Richard Owen says the energy giant will consider options for undertaking a staged development of the Scarborough gas field. He has told a business lunch in Sydney that ExxonMobil is likely to examine ways to start delivering cash flows from new oil and gas projects at an earlier stage of their development, rather than the so-called "mega-project" approach of recent years. The Gorgon LNG has commenced shipments more than six years after construction commenced.

CORPORATES
EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, GORGON PTY LTD

Resources rent tax will face a ‘sober’ review

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Original article by Joanna Mather, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 1-Dec-16

Treasurer Scott Morrison has revealed plans for an inquiry into Australia’s Petroleum Resources Rent Tax. Government revenue from the tax has fallen sharply in the wake of a downturn in the crude oil price, which has made oil and gas projects less profitable. Shell Australia chairman Andrew Smith argues that revenue from the "super profits"-based tax naturally fluctuates with commodity price changes, and lower government revenue does not mean the PRRT is flawed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SHELL COMPANY OF AUSTRALIA LIMITED, EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Mega-project days over: Exxon

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 1-Dec-16

ExxonMobil Australia chairman Richard Owen says the energy giant will consider options for undertaking a staged development of the Scarborough gas field. He has told a business lunch in Sydney that ExxonMobil is likely to examine ways to start delivering cash flows from new oil and gas projects at an earlier stage of their development, rather than the so-called "mega-project" approach of recent years. The Gorgon LNG has commenced shipments more than six years after construction commenced.

CORPORATES
EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, GORGON PTY LTD

Resources rent tax will face a ‘sober’ review

roymorgansocial Leave a comment

Original article by Joanna Mather, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 1-Dec-16

Treasurer Scott Morrison has revealed plans for an inquiry into Australia’s Petroleum Resources Rent Tax. Government revenue from the tax has fallen sharply in the wake of a downturn in the crude oil price, which has made oil and gas projects less profitable. Shell Australia chairman Andrew Smith argues that revenue from the "super profits"-based tax naturally fluctuates with commodity price changes, and lower government revenue does not mean the PRRT is flawed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SHELL COMPANY OF AUSTRALIA LIMITED, EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

LNG giants face bill for underpaid royalties

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 29-Nov-16

The royalty regime for the North West Shelf LNG project is under scrutiny following a review by the Australian National Audit Office. Amongst other things, the ANAO concluded that there are deficiencies in the way royalty payments are calculated, while the project’s partners may not be entitled to all of the deductions which they have claimed. A spokeswoman for Woodside Petroleum says the company has strict compliance procedures regarding royalty payments, and any underpayment is unlikely to exceed $A11.6m.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, NORTH WEST SHELF LNG PTY LTD, AUSTRALIAN NATIONAL AUDIT OFFICE, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, BHP BILLITON LIMITED – ASX BHP, BP PLC, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, JAPAN AUSTRALIA LNG PTY LTD, MITSUBISHI CORPORATION, MITSUI AND COMPANY LIMITED

AGL mulls gas import to beat supply crunch

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 15-Nov-16

The high domestic price of gas in Australia’s southeastern states and supply constraints may prompt AGL Energy to source natural gas from regions such as Asia, Europe or the Middle East. AGL will undertake a feasibility study on the proposal to build an LNG import terminal and processing facility, which would capitalise on a global oversupply of LNG. Shell Australia chairman Andrew Smith put forward a similar suggestion earlier in 2016.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, SHELL COMPANY OF AUSTRALIA LIMITED

Forrest branches into oil and gas

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Original article by Paul Garvey
The Australian – Page: 19 & 20 : 2-Nov-16

Goshawk Energy and a company owned by Fortescue Metals Group founder Andrew Forrest have applied for oil and gas exploration permits covering about 220,000 square kilometres in Western Australia’s onshore Canning Basin. Forrest has applied for the permits via Squadron Energy, which is a subsidiary of Minderoo. A spokeswoman for Minderoo says the company is not currently considering the use of fracking in the Canning Basin, but environmental groups have urged Forrest to rule out using the technology.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, SQUADRON ENERGY, MINDEROO PTY LTD, GOSHAWK ENERGY PTY LTD, BURU ENERGY LIMITED – ASX BRU, ENVIRONS KIMBERLEY, HANCOCK PROSPECTING PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, AUSTRALIAN LABOR PARTY, CONOCOPHILLIPS, APACHE CORPORATION, HESS CORPORATION, PETROCHINA COMPANY LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, LAKES OIL NL – ASX LKO, EMPIRE OIL AND GAS NL – ASX EGO

Woodside plays down $US5 billion Wheatstone cost blowout

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 : 1-Nov-16

Woodside Petroleum has advised that a 17 per cent increase in the cost of the Wheatstone LNG project will have limited effect on the capital expenditure guidance it issued in early 2016. The oil and gas producer has a 13 per cent stake in the Chevron-led project, whose total cost has risen by $US5bn ($A6.6bn) to $US34bn. Saul Kavonic of Wood Mackenzie says he had already anticipated a cost over-run of at least 15 per cent.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, WOOD MACKENZIE, RBC CAPITAL MARKETS

Santos sells last Victorian asset

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Original article by Matt Chambers
The Australian – Page: 32 : 25-Oct-16

Australian-listed Cooper Energy will assume full ownership of the Sole gas project in the Gippsland Basin after securing a deal to acquire Santos’s 50 per cent stake for $A82m. Cooper Energy will undertake a $A63m capital raising to help finance the deal, and it will then seek a joint venture partner for the project. Santos has now offloaded all of its assets in Victoria. Its shares closed $A0.11 lower at $A3.73 on 24 October 2016.

CORPORATES
SANTOS LIMITED – ASX STO, COOPER ENERGY LIMITED – ASX COE

Perth fundies see more upside in resources

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 : 24-Oct-16

Australia’s S&P/ASX 300 Metals & Mining Index has gained 45.3 per cent so far in 2016, while the benchmark S&P/ASX 200 has risen by just 6.2 per cent. The rebound in the share prices of resources and energy stocks has rewarded investors who capitalised on a sell-off in the sector earlier in the year. WestOZ Funds Management has been progressively lifting its funds’ weightings toward the sector over recent months, while scaling back their exposure to cash.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 300 METALS AND MINING INDEX, WESTOZ FUNDS MANAGEMENT PTY LTD, WESTOZ INVESTMENT COMPANY LIMITED – ASX WIC, PACKER AND COMPANY INVESTIGATOR TRUST, NORILSK NICKEL, CAMECO CORPORATION, BELL POTTER SECURITIES LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, INDEPENDENCE GROUP NL – ASX IGO, WESTERN AREAS LIMITED – ASX WSA, SANDFIRE RESOURCES NL – ASX SFR