Santos stalks wounded Oil Search

Original article by Perry Williams
The Australian – Page: 13 & 16 : 21-Jul-21

Allan Gray Australia’s MD Simon Mawhinney says the board of Oil Search must engage with Santos after the latter revealed on 20 July that it had proposed an all-scrip merger in late June. Oil Search rejected the offer of 0.589 new Santos shares for each of its shares, arguing that it represented a premium of just 6.8 per cent. Mark Samter of MST Marquee agrees that Oil Search directors should have engaged with Santos regarding the bid. Meanwhile, the position of Oil Search chairman Rick Lee is under scrutiny after he told an investor briefing on 19 July that it had not received any takeover approaches. Oil Search subsequently issued a clarification.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, SANTOS LIMITED – ASX STO, ALLAN GRAY AUSTRALIA PTY LTD, MST MARQUEE

CCS critical to attract investment: Santos

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 22 : 9-Jul-21

Santos hopes to make a final investment decision on its proposed $210 million carbon capture and storage project in South Australia by the end of September. The project will have the potential to capture 1.7 million tonnes of carbon a year, and Santos contends that will be the lowest-cost CCS project worldwide. CEO Kevin Gallagher contends that Australia has a competitive advantage when it comes to CCS, and that making the most of this will be vital when it comes to the resources sector continuing to attract overseas investment.

CORPORATES
SANTOS LIMITED – ASX STO

Mega projects have a future: Woodside

Original article by Perry Williams, Paul Garvey
The Australian – Page: 13 & 16 : 9-Jun-21

The Western Australian government has approved Woodside Petroleum’s proposed expansion of the Pluto LNG project, subject to a number of conditions. Woodside will be required to reduce carbon emissions at the LNG plant by 30 per cent by 2030, while the project must become carbon-neutral by 2050. The expanded plant will process gas from the Scarborough gas field; Woodside’s interim CEO Meg O’Neill contend that the company can both develop Scarborough and meet its carbon reduction targets, given that the gas field contains almost no carbon dioxide.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL

Shell plunges to $6bn loss as virus hits

Original article by Perry Williams
The Australian – Page: 13 & 16 : 26-Apr-21

Shell Australia has posted a full-year loss of $US4.9bn ($6.3bn), compared with a loss of just $US661m previously. The latest financial result was marred by a $US6.2bn writedown of the energy giant’s Australian operations due to a sharp fall in the crude oil price in 2020. The Prelude floating LNG venture was the primary cause of the big writedown. Australian LNG producers have now incurred combined writedowns of more than $25bn in the wake of the pandemic.

CORPORATES
SHELL COMPANY OF AUSTRALIA LIMITED, ROYAL DUTCH SHELL PLC

Producers to reap windfall as LNG price soars

Original article by Perry Williams
The Australian – Page: 17 : 11-Jan-21

Australia’s revenue from LNG exports is likely to rise strongly after a surge in demand for LNG in Asia boosted the price of the commodity. Industry sources have stated that a Japanese utility has paid $US37 per million British thermal units for an LNG shipment from the Gorgon project in Western Australia. The benchmark for LNG spot prices in North Asia also recently rose to $US20.70 per mbtu, compared with just $US2 per mbtu in June. Cold weather in Asia has been the key driver of the surge in demand for LNG.

CORPORATES

Santos sticks to gas, earmarking $1bn for Narrabri development

Original article by Perry Williams
The Australian – Page: 16 : 2-Dec-20

Santos CEO Kevin Gallagher says the oil and gas producer will not diversify into renewable energy or electricity generation. He contends that global demand for fuels will remain strong for a long time, while gas will play a major role in reducing carbon emissions over coming decades. Meanwhile, Santos expects to make a final investment decision on its Narrabri gas project in the first half of 2023, with the first phase of its development slated to cost $US650m. Santos has also advised that its Barossa LNG project will cost significantly less to develop than initially forecast.

CORPORATES
SANTOS LIMITED – ASX STO

China fallout hits Woodside gas sale plan

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 14 & 18 : 12-Nov-20

Woodside Petroleum CEO Peter Coleman says potential Chinese investors have abandoned talks to acquire a stake in Scarborough gas project due to the growing trade tensions between Australia and China. He adds that this contributed to Woodside’s decision to drop plans to reduce its stake in the Scarborough project and focus on selling a stake in the Pluto-2 project. Coleman has stressed that relations between Woodside and its existing Chinese customers and partners remain strong.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL

Forrest to drive gas import terminal

Original article by Perry Williams
The Australian – Page: 15 : 30-Oct-20

Mining magnate Andrew Forrest is set to proceed with a proposed LNG import terminal at Port Kembla in New South Wales. Sources have indicated that Forrest’s private company Squadron Energy is close to finalising a long-term lease at Port Kembla. Squadron recently bought out its Japanese partners in the project, and it has previously indicated that construction work could start by the end of 2020. A number of other LNG import projects have been proposed to address gas supply concerns in Australia’s eastern states.

CORPORATES
SQUADRON ENERGY PTY LTD

More may exit NW Shelf, Woodside warns

Original article by Perry Williams
The Australian – Page: 13 & 17 : 25-Jun-20

Woodside Petroleum director Ann Pickard says the North West Shelf joint venture worked very well at first, but the competing interests of the six partners have progressively gotten in the way. She says other partners could opt to join Chevron in selling out of the LNG venture, given that the NWS plant is set to begin processing third-party gas as the project’s reserves run down. Former Woodside CEO Don Voelte says Shell and BP could potentially sell their NWS stakes.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, NORTH WEST SHELF LNG PTY LTD, CHEVRON CORPORATION, BP PLC, ROYAL DUTCH SHELL PLC

NW Shelf shake-up looming

Original article by Perry Williams
The Weekend Australian – Page: 21 & 22 : 20-Jun-20

Former Woodside Petroleum CEO Don Voelte says a new model for the $34 billion North West Shelf LNG plant that would see it process gas for other firms may not suit some of its current owners. Woodside is one of six joint-venture partners who own the plant, but Chevron has decided to sell out of the plant, and BP and Shell could follow suit. Voelte says he would not surprised to see more selling of assets by major oil firms; he notes that Exxon is currently trying to sell its interest in the Bass Strait assets. He says asset sales have always been part of the majors’ strategy, but they would not get as much now as they would now.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, BP PLC, ROYAL DUTCH SHELL PLC, EXXON CORPORATION, BHP GROUP LIMITED – ASX BHP