LIQUEFIED NATURAL GAS INDUSTRY – AUSTRALIA

Origin Energy strikes China LNG deal

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 18 : 2-Mar-16

Australian-listed Origin Energy has secured a preliminary agreement to supply 500,000 tonnes of LNG each year to the trading arm of China-based ENN Energy Holdings. The proposed five-year deal is the first that Origin has negotiated in its own right, rather than as part of the Australia Pacific LNG venture. Michael Dargue of Citigroup has questioned whether it is an appropriate time for Origin to become an LNG trader due to the potential risks.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, ENN ENERGY HOLDINGS LIMITED, AUSTRALIA PACIFIC LNG LIMITED, CITIGROUP PTY LTD, SINOPEC CORPORATION, KANSAI ELECTRIC POWER COMPANY INCORPORATED

Origin shareholders hit with dividend cut

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 21 : 19-Feb-16

Shares in Origin Energy closed 8.7 per cent higher at $A4.23 on 18 February 2016, despite posting a 2015-16 interim loss of $A254m. The result was marred by a sharp decline in the crude oil price, which has impacted on Origin’s LNG project in Queensland. Origin’s underlying profit for the half-year fell from $A346m to $A254m. Shareholders will receive an interim dividend of $A0.10 per share, compared with $A0.25 previously.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, CONTACT ENERGY LIMITED – ASX CEN, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, STANDARD AND POOR’S CORPORATION

Oil rout hinders Browse outlook

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Original article by Matt Chambers
The Australian – Page: 19 & 20 : 18-Feb-16

Oil and gas producer Woodside Petroleum has slashed its full-year dividend payout after posting a 2015 net profit of $US26m, compared with $US2.41bn previously. The group’s underlying profit of $US1.126bn exceeded market forecasts, although it was 53 per cent lower than in 2014. Woodside’s full-year result was marred by factors such as a $US865m write-down and the downturn in the crude oil price. Shareholders will receive a full-year dividend of $US1.09 per share.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, BP PLC, MITSUBISHI CORPORATION, MITSUI AND COMPANY LIMITED, PETROCHINA COMPANY LIMITED, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA. DEPT OF THE TREASURY

Coates plans board shake-up at Santos

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Original article by Damon Kitney, Matt Chambers
The Australian – Page: 17 & 18 : 15-Feb-16

Oil and gas producer Santos has indicated that its 2015 financial results could include write-downs of up to $A3bn. Meanwhile, chairman Peter Coates has stressed the need for board renewal, noting that some directors have been on the board for a long time. However, he says there are no plans for further board changes in 2016, although there has been speculation that several could step down before the end of the year. Coates has also identified recruiting his eventual successor as a priority.

CORPORATES
SANTOS LIMITED – ASX STO, AGL ENERGY LIMITED – ASX AGL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SCHLUMBERGER LIMITED, ASX LIMITED – ASX ASX, BLUESCOPE STEEL LIMITED – ASX BSL, ENERGYAUSTRALIA PTY LTD, COCHLEAR LIMITED – ASX COH, DEUTSCHE BANK AG, CGI GLASS LEWIS PTY LTD, STANDARD AND POOR’S CORPORATION, ORIGIN ENERGY LIMITED – ASX ORG, CONOCOPHILLIPS

IEA head warns low oil prices may threaten energy security

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 10-Feb-16

The International Energy Agency’s executive director, Fatih Birol, says investment in oil production is expected to fall by 16 per cent in 2016, following a 20 per cent downturn in 2015. He has warned that some higher-cost projects may be delayed or put on hold if the crude oil price remains at current levels. This in turn could increase reliance on oil from the Middle East, where geopolitical tensions could affect global oil supply. Birol also noted that Australia’s LNG projects will benefit global energy security in the long-term.

CORPORATES
INTERNATIONAL ENERGY AGENCY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

High LNG exports help wipe fuel import costs

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 9 : 9-Feb-16

EnergyQuest estimates that strong growth in LNG exports reduced Australia’s petroleum deficit to about $A4m in December 2015. It was the smallest petroleum deficit since August 2010, and followed the commencement of production at the three LNG processing plants at Gladstone in Queensland. Australia’s LNG production rose by 48 per cent year-on-year in December, although the downturn in the crude oil price resulted in LNG export revenue falling by 0.5 per to $A1.575bn.

CORPORATES
ENERGYQUEST PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, CONOCOPHILLIPS, CHEVRON CORPORATION

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

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

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