LIQUEFIED NATURAL GAS INDUSTRY – AUSTRALIA

Oil Search sued for bullying CFO from job

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Original article by Jemima Whyte,Michael Roddan
The Australian Financial Review – Page: 1 & 8 : 17-Nov-21

Oil Search has advised that it will fully defend itself against allegations that its incoming CFO had been forced to resign due to bullying and harassment. Ayten Saridas joined Oil Search in August 2020 and was to succeed incumbent CFO Stephen Gardiner in 2021. However, she resigned after just four months and the oil and gas group, claiming that she had been subjected to bullying and harassment by both Gardiner and former CEO Keiran Wulff. The latter subsequently resigned in July; Oil Search attributed this to health reasons but said there had been several complaints about his conduct.

CORPORATES
OIL SEARCH LIMITED – ASX OSH

Downgrades fuel Scarborough doubts

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 19 : 11-Nov-21

Woodside Petroleum’s proposed $16bn Scarborough LNG project is under renewed scrutiny in the wake of the oil and gas group’s recent downgrading of the reserves at its Wheatstone and Pluto gas fields. Woodside is slated to make a final investment decision on Scarborough by the end of 2021, and some analysts have scaled back their gas reserve estimates for Scarborough in the wake of the Wheatstone and Pluto downgrades. There may also be implications for the valuation of Woodside if its proposed merger with BHP’s petroleum division proceeds.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP GROUP LIMITED – ASX BHP

Origin pockets $2b for clean energy plans

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Original article by Elouise Fowler
The Australian Financial Review – Page: 13 & 18 : 26-Oct-21

Origin Energy has reduced its stake in the Australia Pacific LNG project to 27.5 per cent after striking a $2.12bn deal with EIG Global Energy Partners. The private equity group will acquire a 10 per cent stake in the project; EIG CEO R. Blair Thomas says the deal reflects the importance of LNG as a "critical enabler" of the transition to clean energy. Origin Energy has signalled that some of the expected net proceeds of $2bn from the deal may be reinvested in clean energy and storage projects, in addition to reducing debt.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, EIG GLOBAL ENERGY PARTNERS

Beach Energy in LNG deal with BP Singapore

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Original article by Elouise Fowler
The Australian Financial Review – Page: 16 : 28-Sep-21

Beach Energy will become Australia’s biggest LNG exporter after securing a five-year deal to supply 3.75 million tonnes of gas from its Waitsia project to BP’s Singapore unit. The deal will account for the entire expected output from the second stage of the onshore project in Western Australia. The spot price of LNG in Asia has surged in recent months, and Beach MD Matt Kay says the company had held back on selling its gas early in the COVID-19 pandemic as prices fell. Gas from Waitsia will be processed via the North West Shelf LNG plant.

CORPORATES
BEACH ENERGY LIMITED – ASX BPT, BP SINGAPORE PTE LTD, BP PLC

PNG hits Santos with log of claims over Oil Search merger

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 & 22 : 6-Aug-21

The proposed merger between Santos and Oil Search would have to be in Papua New Guinea’s national interest, says Prime Minister James Marape. He has outlined a number of conditions that may have to be met for his government to approve the deal. They include a commitment to retaining corporate offices in PNG and to continue to employ and train PNG nationals. Saul Kavonic of Credit Suisse says the PNG government may seek to leverage its veto power to secure a better merger deal.

CORPORATES
SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, PAPUA NEW GUINEA. OFFICE OF THE PRIME MINISTER, CREDIT SUISSE (AUSTRALIA) LIMITED

Santos could sell PNG gas stake to thwart rival bid: analysts

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Original article by Perry Williams
The Australian – Page: 17 : 4-Aug-21

Santos will have a 42.5 per cent stake in the Papua New Guinea LNG project if its proposed merger with Oil Search proceeds. Tom Allen of UBS has flagged the possibility that Santos could reduce its current stake of 13.5 per cent in the project by 10 per cent; he notes that this would align Santos with its joint venture partners and reduce the risk of that a counterbid for Oil Search will emerge. PNG LNG partners ExxonMobil and Total have been touted as potential bidders for Oil Search.

CORPORATES
SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, UBS HOLDINGS PTY LTD, EXXONMOBIL CORPORATION, TOTALENERGIES SE

Santos stalks wounded Oil Search

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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

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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

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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

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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