PETROLEUM INDUSTRY AND TRADE

Profits easier offshore: O’Neill

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Original article by Colin Packham
The Australian – Page: 13 & 17 : 6-Nov-25

Woodside Energy has forecast that its net cash flow from operations will rise to around $US9bn by 2032, compared with about $US5bn in 2024. CEO Meg O’Neill says this growth will be driven by factors such as the start-up of projects such as Scarborough LNG in Western Australia and Trion oil in Mexico, as well as tighter capital management. O’Neill has also warned that the regulatory burden in Australia is making countries such as the US and Mexico more attractive as investment destinations, which is why Woodside is directing more capital to them.

CORPORATES
WOODSIDE ENERGY GROUP LIMITED – ASX WDS

Petrol demand still on rise, but peak prediction is 2030

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 27 : 13-Jun-18

FACTS Global Energy chairman Fereidun Fesharaki expects growth in global consumption of crude oil to average 0.7 per cent a year until 2040. However, Fesharaki expects global demand for petrol to peak in 2030, while demand in Asia will peak in 2040. Fesharaki also says Woodside Petroleum’s Scarborough LNG project is certain to proceed, although he warns that other projects are doubtful due to LNG buyers’ aversion to long-term supply deals.

CORPORATES
FACTS GLOBAL ENERGY GROUP OF COMPANIES, WOODSIDE PETROLEUM LIMITED – ASX WPL, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, CREDIT SUISSE AG

BHP could spin off petroleum: analyst

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Original article by James Thomson
The Australian Financial Review – Page: 19 : 6-Jul-17

Bernstein analyst Paul Gait says BHP Billiton could potentially divest its petroleum and potash assets under incoming chairman Ken MacKenzie. Several institutional investors support a proposal by activist hedge fund Elliott Management for BHP to spin off its US petroleum division. Gait suggests that MacKenzie may be more objective about BHP’s future strategy given his lack of experience in the mining sector.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, ELLIOTT MANAGEMENT CORPORATION, TRIBECA GLOBAL NATURAL RESOURCES FUND, ABERDEEN ASSET MANAGEMENT LIMITED

BHP’s growth prospects still linked to oil

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 22 : 6-Feb-17

BHP Billiton’s announcement in 2016 that it would seek to increase annual coking coal production in Queensland by four million tonnes has proven to be an astute move, given the rebound in the price of coal. The Peak Downs mine achieved record output in the December quarter. BHP also advised that maintenance work on railway lines serving its Pilbara iron ore operations will be completed nine months ahead of schedule. Meanwhile, BHP is ramping up investment in its petroleum division in order to arrest a decline in production.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, MITSUBISHI CORPORATION

BHP keeps the faith in US shale business

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Original article by Peter Ker
The Australian Financial Review – Page: 19 & 24 : 6-Oct-16

The head of BHP Billiton’s petroleum division, Steve Pastor, is upbeat about the group’s US shale operations. He is particularly bullish about the Permian shale field in West Texas, noting that it could potentially become the division’s biggest source of production and cash flow within five years. Meanwhile, Pastor says BHP will consider acquisitions that add value, but it will only pursue deals that are appropriately priced. He has also forecast a global oil shortage in 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BP PLC

Drones, digital tech offer savings for oil firms

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 26 : 15-Apr-16

Unscheduled downtime at LNG projects is estimated to cost about $US11m per day, according to General Electric. Lorenzo Simonelli, the CEO of the conglomerate’s GE Oil & Gas division, says technology can be utilised to minimise such disruptions. This could include the use of drones to monitor the condition of offshore oil or gas platforms and detect leaks, and the use of predictive analysis to determine the likelihood that oil and gas equipment will break down.

CORPORATES
GENERAL ELECTRIC COMPANY, GE OIL AND GAS, CONOCOPHILLIPS, SIEMENS AG, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, WOODSIDE PETROLEUM LIMITED – ASX WPL

Energy M&A on rise as new players emerge

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 24 : 3-Mar-16

Herbert Smith Freehills partner Rob Merrick says expectations that the downturn in the crude oil price will be sustained may prompt consolidation in the global oil and gas industry. Many Australian-listed energy groups announced asset writedowns during the February 2016 reporting season, but Merrick says they are at less risk of being forced sellers of assets than their overseas peers. The law firm says private equity firms, pension funds and infrastructure funds may actively pursue oil and gas industry acquisitions.

CORPORATES
HERBERT SMITH FREEHILLS PTY LTD, ROYAL DUTCH SHELL PLC, BG GROUP PLC, WOODSIDE PETROLEUM LIMITED – ASX WPL, SENEX ENERGY LIMITED – ASX SXY, SANTOS LIMITED – ASX STO, MITSUI AND COMPANY LIMITED, APACHE CORPORATION, FIRST OIL EXPRO LIMITED, THE BLACKSTONE GROUP LP, THE CARLYLE GROUP, OAKTREE CAPITAL MANAGEMENT LLC, NATIONAL GRID TRANSCO

Oil and gas on U-shape recovery, says AMEC

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 23 : 10-Apr-15

AMEC Foster Wheeler CFO Ian McHoul expects difficult conditions in the oil and gas sector for another 1-2 years. He suggests that the eventual upturn in the sector is more likely to be U-shaped rather than V-shaped. The UK-based engineering group’s growing clean energy business is helping to offset falling demand for oil and gas industry services. The group is interested in Australian acquisitions

CORPORATES
AMEC FOSTER WHEELER PLC, WORLEYPARSONS LIMITED – ASX WOR, KBR INCORPORATED, FLUOR CORPORATION, AECOM, JACOBS ENGINEERING GROUP INCORPORATED, UBS HOLDINGS PTY LTD

Lively second half tipped for oil, gas M&A

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 40 : 2-Apr-15

Wood Mackenzie has forecast an upturn in mergers and acquisitions activity in the oil and gas sector in the second half of 2015, due to the downturn in the crude oil price. The price of Brent crude oil was trading at around $US55 per barrel on 1 April, compared with $US115 in mid-2014. Wood Mackenzie also expects growth in demand for LNG in Asia to slow in response to the falling price of oil

CORPORATES
WOOD MACKENZIE, WOODSIDE PETROLEUM LIMITED – ASX WPL