ENERGY INDUSTRIES – AUSTRALIA

Woodside takes $1.7bn hit as oil prices slump

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Original article by Matt Chambers
The Australian – Page: 17 : 22-Jan-16

Oil and gas producer Woodside Petroleum has reported revenue of $US1.105bn for the December 2015 quarter, which is 37 per cent lower than the same period in 2014. Revenue for the full year also fell by 37 per cent to $US4.5bn, due to the downturn in the crude oil price. Woodside has advised that its full-year accounts will be marred by asset write-downs of up to $US1bn ($A1.2bn). Its shares closed $A0.39 lower at $A25 on 21 January 2016.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, OIL SEARCH LIMITED – ASX OSH, APACHE CORPORATION, DEUTSCHE BANK AG

More oil, gas write-downs set to follow BHP’s lead

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

The downturn in the crude oil price prompted a number of Australian-listed energy groups to announce write-downs in 2015. The price of Brent crude oil closed at $US28.94 per barrel on 15 January 2016, coinciding with BHP Billiton’s announcement that its 2015-16 interim results are likely to include a $US7.2bn impairment charge on its oil and gas assets. Mark Busuttil of JP Morgan has forecast that Santos could announce a pre-tax write-off of about $A2bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, JP MORGAN AUSTRALIA LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, ORIGIN ENERGY LIMITED – ASX ORG, BEACH ENERGY LIMITED – ASX BPT, SENEX ENERGY LIMITED – ASX SXY, AWE LIMITED – ASX AWE, DRILLSEARCH ENERGY LIMITED – ASX DLS, RBC CAPITAL MARKETS, BLOOMBERG LP, STANDARD AND POOR’S CORPORATION, BG GROUP PLC, GLADSTONE LNG PTY LTD, AUSTRALIA PACIFIC LNG LIMITED

Origin ships first LNG from Gladstone

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 18 : 12-Jan-16

Bulk cargo carrier "Methane Spirit" has left Gladstone with the first shipment from Origin Energy’s Australia Pacific LNG project in Queensland. The first shipment had been slated for late December 2015, but the tanker eventually left Curtis Island on 9 January 2016. The majority of gas from the $A24.7bn project has been bought by Sinopec, while other customers include Kansai Electric. APLNG was the last of the three Gladstone LNG projects to commence production.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, KANSAI ELECTRIC POWER COMPANY INCORPORATED, SANTOS LIMITED – ASX STO, BG GROUP PLC, BECHTEL INTERNATIONAL INCORPORATED, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, CONOCOPHILLIPS

Origin finally nears first APLNG shipment

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 8-Jan-16

Bulk cargo carrier "Methane Spirit" will shortly leave the Port of Gladstone with the first shipment from Origin Energy’s Australia Pacific LNG project on Curtis Island in Queensland. Origin has pushed back the deadline for commencing exports from the $A24.7bn project several times. The first shipment was originally slated for mid-2015, but production did not start until December and Origin subsequently advised that exports would begin by the end of 2015.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, CONOCOPHILLIPS, GLADSTONE PORTS CORPORATION LIMITED, SINOPEC CORPORATION, SANTOS LIMITED – ASX STO, BG GROUP PLC

Green light for Origin gas venture

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 16 : 6-Jan-16

Origin Energy and AWE Limited will proceed with the first stage of the Waitsia gas project in Western Australia. The joint venture partners will invest $A17.5m in the first stage of the Perth Basin project, after Alinta Energy secured a deal to buy 10 terajoules of gas per day over 2.5 years. The project will initially have a daily production capacity of 10 terajoules, although this could eventually be lifted to around 100 terajoules a day.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AWE LIMITED – ASX AWE, ALINTA ENERGY (AUSTRALIA) PTY LTD, CITIC PACIFIC, WOOD MACKENZIE, UBS HOLDINGS PTY LTD

Chevron slashes 1200 jobs from Gorgon project

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Original article by Andrew Burrell, Rebecca Puddy
The Australian – Page: 1 & 4 : 23-Dec-15

Chevron and its contractors are reducing the workforce at the Gorgon LNG project in Western Australia, with more job cuts expected as the construction phase of the project winds down. About 1,200 jobs have been cut at the Gorgon gas plant on Barrow Island in recent weeks, while Chevron is also believed to have downsized the workforce at its Australian head office in Perth. Data from the Australian Bureau of Statistics shows that the state economy shed about 10,000 jobs in November 2015.

CORPORATES
CHEVRON CORPORATION, GORGON PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, ROY HILL IRON ORE PTY LTD, ACIL TASMAN PTY LTD, ELECTRICAL TRADES UNION, AUSTRALIAN MANUFACTURING WORKERS’ UNION, CHICAGO BRIDGE AND IRON COMPANY NV, KENTZ (AUSTRALIA) PTY LTD, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE

Woodside cuts spending, lifts production guidance

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 26 : 18-Dec-15

Woodside Petroleum has advised that its total production for 2015 will be within the range of 91 million to 93 million barrels of oil equivalent. Its previous forecast was 88 million to 93 million boe. The oil and gas group has also indicated that capital expenditure for the calendar year will be $US100m lower than previously forecast, and its exploration budget has been cut by $US70m. Woodside’s shares closed 0.85 per cent lower at $A26.82 on 17 December.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, APACHE ENERGY LIMITED, CHEVRON CORPORATION

Woodside drops Oil Search bid

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Original article by Barry FitzGerald
The Australian – Page: 20 : 9-Dec-15

Woodside Petroleum has advised that it will no longer pursue a $A10.2bn takeover bid for Oil Search. Woodside had never convinced investors and the Papua New Guinea Government – which has a 10.1 per cent stake in Oil Search – of its one-for-four scrip offer’s merits. Suhas Nayak of Allan Gray notes that Oil Search could not be classified as a "distressed asset", but says Woodside’s relatively healthy balance sheet means it can pursue such assets if appropriate opportunities arise.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, ALLAN GRAY AUSTRALIA PTY LTD, EXXONMOBIL CORPORATION

Santos pitches value of shares in long term

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 23-Nov-15

Retail investors will be offered shares in Santos at $A3.85 apiece in the oil and gas producer’s entitlement offer. Santos is seeking to raise $A1.375bn from retail investors and $A2.5bn overall. The rights issue is part of a broader strategy aimed at reducing group debt. Neil Beveridge of Bernstein suggests that Santos could attract another private equity buyer, after the group rebuffed a bid from Scepter Partners in October 2015.

CORPORATES
SANTOS LIMITED – ASX STO, BERNSTEIN AND ASSOCIATES, SCEPTER PARTNERS, HONY CAPITAL LIMITED, BLOOMBERG LP

Chinese rescue Santos

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Original article by Simon Evans, Angela Macdonald-Smith, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 12 : 10-Nov-15

China-based Hony Capital will initially acquire a 9.9 per cent stake in Santos for $A500m, although its participation in a $A2.5bn rights issue means the private equity firm will invest about $A700m in the oil and gas group in total. Santos investors will be offered new shares at $A3.85 apiece, compared with the group’s closing price of $A5.91 on 6 November 2015. Meanwhile, Clough CEO Kevin Gallagher will become CEO of Santos in early 2016.

CORPORATES
SANTOS LIMITED – ASX STO, HONY CAPITAL LIMITED, CLOUGH LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, PIZZA EXPRESS, SWISSE WELLNESS PTY LTD, BIOSTIME INTERNATIONAL HOLDINGS LIMITED, SCEPTER PARTNERS, BERNSTEIN AND ASSOCIATES, DEUTSCHE BANK AG, LAZARD PTY LTD, LEGEND GROUP LIMITED, TEMASEK HOLDINGS (PTE) LTD