Page 9 - AsianOil Week 32
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AsianOil                                        OCEANIA                                             AsianOil


       Woodside mulls acquisition opportunities





        FINANCE &        AUSTRALIA’S Woodside Petroleum has said  analysts. “We’re clearly scanning the landscape
        INVESTMENT       it is looking to acquire distressed oil and gas  very closely looking for opportunities.”
                         assets after reporting a 28% slide in its first-half   Woodside said in June that it was interested
                         adjusted profit.                     in Chevron’s planned sale of its one-sixth stake
                           Woodside said its underlying net profit  in the North West Shelf (NWS) liquefied natural
                         amounted to $303mn in the first six months of  gas (LNG) project. Woodside operates the pro-
                         the year, down from the $419mn it reported in  ject, in which BHP, BP, Royal Dutch Shell and a
                         the same period of 2019.             joint venture consisting of Japan’s Mitsubishi and
                           The company reported a half-year net loss of  Mitsui & Co are also partners.
                         $4.07bn as a result of a post-tax impairment loss   The NWS partners signed an initial deal
                         of $3.92bn that it announced on July 14.  in 2018 on processing gas from Woodside’s
                           Production climbed to a record 50.1mn bar-  Browse development under a tolling agree-
                         rels of oil equivalent from 39mn boe in the same  ment, but there has been no sign of a final deal
                         period of 2019. Lower oil and gas prices, how-  on that front, with repeated reports of mount-
                         ever, saw operating revenue decline to $1.91bn  ing friction between the partners. Indicative
                         from $2.26bn a year earlier.         bids for the NWS project are due by the end
                           Woodside CEO Peter Coleman said his com-  of this year.
                         pany was interested in either projects close to   Woodside is also weighing up whether to
                         existing assets or stakes in fields that were close  exercise its right to match Lukoil’s $400mn offer
                         to or in production.                 for Cairn Energy’s 40% stake in the Rufisque,
                           While noting that the conditions created by  Sangomar and Sangomar Deep (RSSD) project
                         the coronavirus (COVID-19) pandemic and  off Senegal. If Woodside does pre-empt the sale
                         the global oil and gas oversupply were the most  its stake will climb from 35% to 75%.
                         difficult “I’ve seen in nearly four decades in the   Coleman told Reuters that his company was
                         industry”, Coleman was upbeat about the future.  also seeking legal advice on whether Lukoil’s par-
                           “We’re optimistic that the worst of the sup-  ticipation in the project could expose the part-
                         ply and demand shocks are behind us,” he told  ners to US sanctions against Russia.™





















       Neptune eyes Eni’s Australian assets





        FINANCE &        NEPTUNE Energy is reportedly the latest party  Development Area in the Timor Sea and the
        INVESTMENT       to express interest in buying Italian major Eni’s  undeveloped Evans Shoal gas field, which could
                         Australian oil and gas portfolio.    be a potential backfill for Darwin LNG.
                           Neptune will join Macquarie Capital and   Reports emerged in May that the Italian
                         Beach Energy as frontrunners in the chase to  major wanted to sell its Australian assets to raise
                         secure the assets, local daily The Australian  cash amid the coronavirus (COVID-19) driven
                         reported on August 6, noting that other poten-  global economic downturn, which has seen
                         tial suitors included Santos, Cooper Energy and  international oil and gas prices collapse.
                         a range of infrastructure investors.   Eni is understood to be working with invest-
                           Eni’s prized assets include a 10.99% stake  ment bank Citi on the sale, which is to be held
                         in Darwin LNG and the plant’s feedstock field  over two round and is expected to raise an esti-
                         Bayu-Undan and its wholly owned Blacktip  mated $700-900mn. Blacktip is understood to
                         natural gas field and attached Yelcherr process-  account for the bulk of this valuation, given that
                         ing plant. Eni also owns stakes in four explo-  the field has a long-term gas supply agreement
                         ration licences, including the Joint Petroleum  with domestic buyers.



       Week 32   13•August•2020                 www. NEWSBASE .com                                              P9
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