GAS INDUSTRY – AUSTRALIA

LNG import terminal remains a live option

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 5-Sep-18

Australian Industrial Energy CEO James Baulderstone says it still plans to make a final decision on its proposed LNG import terminal at Port Kembla by the end of 2018. Baulderstone believes LNG imports will still be competitive under federal Labor’s proposed gas measures. AIE’s LNG import project is expected to cost around $500 million. AGL, which is planning a similar project at Crib Point in Victoria, is not yet in a position to state how Labor’s proposals could impact on its project.

CORPORATES
AUSTRALIAN INDUSTRIAL ENERGY, AGL ENERGY LIMITED – ASX AGL, AUSTRALIAN LABOR PARTY, MACQUARIE EQUITIES LIMITED, HAYBERRY INVESTMENTS PTY LTD

Twiggy, Santos battle over gas developments

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Original article by Perry Williams
The Australian – Page: 17 & 27 : 10-Jul-18

Macquarie has suggested that Santos could find it hard to secure New South Wales government approval for its Narrabri coal-seam gas project if Australian Industrial Energy builds an LNG import terminal. AIE CEO James Baulderstone claims that the facility would be able to supply gas to NSW much faster and at much lower cost. However, Santos CEO Kevin Gallagher argues that gas from Narrabri would be much cheaper. The AIE consortium’s members include iron ore magnate Andrew Forrest.

CORPORATES
SANTOS LIMITED – ASX STO, AUSTRALIAN INDUSTRIAL ENERGY, MACQUARIE GROUP LIMITED – ASX MQG, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT

Santos and ENN in an awkward spot after Harbour bid rejected

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Original article by Simon Evans, Michael Smith
The Australian Financial Review – Page: 17 : 25-May-18

Oil and gas producer Santos announced on 22 May that it had rejected a $A14.4 billion takeover bid from private equity firm Harbour Energy. Chinese gas firm ENN, which is a major shareholder in Santos, did not take part in the board’s decision to reject Harbour’s bid, as it had backed the Harbour offer. Santos CEO Kevin Gallagher says he does not expect there to be any tension on its board as a result of the decision to reject the offer, while Macquarie Capital has described the decision as a "bold move".

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, MACQUARIE CAPITAL PTY LTD, HONY CAPITAL, ENERGYQUEST PTY LTD

Santos share price now at right level

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Original article by Simon Evans
The Australian Financial Review – Page: 17 & 28 : 24-May-18

Troy Angus of Paradice Investment Management says Santos’s rejection of a takeover offer from Harbour Energy was justified, saying it did not reflect the growth potential of some assets. Santos CEO Kevin Gallagher has also defended the decision to spurn the $A14.4bn bid, after Harbour Energy questioned the oil and gas group’s medium-term growth opportunities. Santos shares closed 8.4 per cent lower at $A5.90 on 23 May, but Gallagher says the stock is now at an appropriate after rising in recent months.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, PARADICE INVESTMENT MANAGEMENT PTY LTD, CONOCOPHILLIPS, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, AUSTRALIAN LABOR PARTY

Industry baulks at Pauline’s gas pact

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Original article by Matt Chambers
The Australian – Page: 4 : 23-May-18

The Australian Petroleum Production & Exploration Association has warned that oil and exploration costs would rise under proposals put forward by One Nation leader Pauline Hanson. The Federal Government had agreed to a number of concessions in return for One Nation’s support for its company tax package, including changes to the Petroleum Resource Rent Tax and a gas reservation scheme in Western Australia. One Nation subsequently withdrew its support for the tax package, although LNG producers still anticipate some changes to the PRRT.

CORPORATES
AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, ONE NATION PARTY, CHEVRON AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Santos rejects $14.5bn Harbour bid

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Original article by Matt Chambers, Scott Murdoch
The Australian – Page: 17 & 22 : 23-May-18

Santos has terminated discussions with Harbour Energy after its board deemed that the suitor’s "best and final" offer of $US5.21 ($A6.95) per share did not reflect the oil and gas group’s full value. The deal would have required approval by 75 per cent of Santos shareholders, as well as the Foreign Investment Review Board. It is believed that Santos CEO Kevin Gallagher and most of its board supported the deal, but chairman Keith Spence is said to have opposed it from the outset. Santos shares closed $A0.08 higher at $A6.44 on 22 May.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

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