Page 13 - AsianOil Week 13

AsianOil
NEWS IN BRIEF
AsianOil
it difficult to ensure last-mile delivery of gas to households for daily hot water, cooking, hospital needs, industry, and other commercial uses. Outskirts of cities are more severely affected because many of these areas are not connected to city gas distribution networks. CGH has maintained gas supplies to ensure uninterrupted service to existing customers and to make gas available for new needs on an expedited basis during the emergency response and recovery. ASIAN DEVELOPMENT BANK, March 31, 2020
OCEANIA
COVID-19 – Beetaloo Project Update
Falcon Oil & Gas provides the following operational update on the Beetaloo project in the Northern Territory, Australia in light of COVID-19.
Following the successful completion of drilling operations, including cementing and casing of the horizontal well section of the
Kyalla 117 N2-1H ST2 well (the “Kyalla Well”), the JV has completed the installation of water monitoring bores and preparatory work has continued towards the next phase of operations, which will include the fracture stimulation of the Kyalla Well.
Given the unprecedented circumstances brought about by COVID-19 in recent weeks, the JV has made changes to its operations to protect the health and well-being of Origin Energy Limited employees, contractors and communities across the Northern Territory. Adhering to the latest guidelines and advice from the Northern Territory and Federal Government on health and safety and social distancing are of the utmost importance to the JV and all present on site are observing health authority requirements.
Following the implementation of the necessary control procedures, the JV has now elected to temporarily pause activities at the Kyalla Well site, reducing those on site to essential personnel only, whilst ensuring the required regulatory and environmental management conditions to monitor and
maintain the site can be met. The JV plans
to resume activities in the latter half of 2020
and during this interim period the JV will
use Northern Territory based employees and contractors to undertake civil and other works in preparation for the resumption of activities.
The JV remains committed to the Beetaloo project which, if successful, has the potential
to deliver long-term economic and social benefits for the Northern Territory, Australia and is encouraged by the positive results to date. However, the circumstances presented by COVID-19 have led the JV to conclude that the focus at this time must be to protect the people and communities of the Northern Territory. FALCON OIL & GAS, March 26, 2020
Senex business update
Senex is in a strong financial position
with resilient cashflows from its low-cost
oil and gas operations. Further, Senex’s transformational Surat Basin work program is to be completed in the coming months, with the Company retaining full discretion as to growth capital expenditure through its 100% operated asset position and disciplined approach.
Senex’s oil and gas portfolio generates revenue from fixed price domestic gas contracts, oil-linked gas contracts and oil production with material downside hedging in place. A summary of Senex’s price exposure is provided below.
In the Cooper Basin, over 500,000 barrels of oil production is hedged for the 18-month period to 30 June 2021 at prices between A$90- 95/bbl.
At Roma North, the oil-linked gas sales agreement with GLNG has downside price protection built into the contract and delivers positive operating cashflow at below US$15/bbl and gas revenue of more than A$5/GJ at current spot oil prices (US$27/bbl) and exchange rates (AUD/USD 0.60).
At Atlas, over 60% of expected gas production through to the end of calendar year 2022 is contracted at strong fixed prices.
95% of Surat Basin gas production is contracted for calendar year 2020.
As at 29 February 2020, Senex had strong liquidity with cash reserves of $105 million and
drawn debt of $125 million. Senex’s debt facility was sized to deliver our transformational Surat Basin gas projects, with peak net debt of less than $80 million expected in Q1 FY21 upon completion of the work programs and at the commencement of free cash flow generation. Senex continues to enjoy strong banking syndicate support.
SENEX ENERGY, March 27, 2020
Woodside’s response to market conditions
The current uncertain global investment environment arising from the spread of COVID-19, combined with oversupply of crude oil and LNG, has led to significant decline in prices, requiring decisive and swift action. Woodside’s priority is to protect the health and safety of our people, contractors and communities, while ensuring the operational and financial integrity of our business.
Woodside is taking a prudent approach to cash flow management, given the considerable uncertainty in the near-term investment environment and the magnitude of forward capital investment decisions. We will take appropriate actions to ensure our credit rating remains robust, and that we are well prepared to invest when market conditions stabilise
and improve. We are focused on creating differentiating shareholder value.
Key features of Woodside’s response are:
Implementation of strategies to reduce the risk of transmission of COVID-19 to Woodside’s people, contractors and communities and its potential impact on Woodside’s business
Changes to Woodside’s 2020 work plan resulting in an approximately 50% reduction in forecast 2020 total expenditure
Review of all non-committed activities supporting Woodside’s growth activities resulting in an approximately 60% reduction in Woodside’s 2020 guided investment expenditure
Deferral of targeted final investment decisions (FID) for Scarborough, Pluto Train 2 and Browse
Continuing to progress capital investments in Sangomar Field Development Phase 1 (Sangomar), Pyxis Hub and Julimar-Brunello Phase 2
Woodside’s production guidance remains unchanged.
These actions bolster the financial resilience that Woodside has developed in recent years in preparation for growth and position the company to maximise opportunities after the simultaneous impact of demand and supply shocks passes.
WOODSIDE PETROLEUM, March 27, 2020
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