ARD NEWS

Second ARD business breakfast with the Ambassador of Russian Federation to Australia, HE Mr Grigory Logvinov, took place in Perth on April, 3 at Perth Convention and Exhibition Centre. It followed the first business breakfast that took place on August, 1, 2017.


Photo: ARD Business Breakfast participants with the Russian Ambassador to Australia HE Mr Grigory Logvinov

The April, 3 event was attended by representatives of companies who are doing business in Russia or are intending to expand their business connections with Russia. Representatives of Curtin University, Australian Petroleum Production and Exploration Association (APPEA), Orica Limited, Moly-Cop Australasia were among the participants. The meeting from their perspective was very informative, intimate and relaxed. A lot of insight was gained from the Ambassador’s speech and informal dialogues. Topics discussed included continuity of Russia’s ‘rebalance’ towards Asia- Pacific, formation of the new Russian government that will take place soon after the inauguration of the President on May, 7, and new Russian Government tax and foreign investment initiatives that may be announced afterwards.

Practicalities of the ARD business breakfast on the sidelines of the St-Petersburg International Economic Forum (SPIEF) on May,23, 2018 were also discussed, including visas for Australian participants and registration costs. Planning for this event is coordinated with ARD Partner, Roscongress Foundation, who is the organizer of SPIEF. This business breakfast will be a ‘by invitation only’ event. The title of the event is “Australia-Russia business re-connection: how and why?”

According to one of the participants, it was a very interesting and enjoyable event all round.

ARD would like to make business breakfasts with the Russian Ambassador in Russia, and with Australian Ambassador in Moscow regular events for its members and guests.

Companies and organizations interested in hosting such an event in the future are invited to contact ARD at ard@iinet.net.au.

Woodside Petroleum is raising $2.5 billion from shareholders to fund its purchase of an additional stake in Western Australia’s Scarborough gas field and expansion of other gas projects.


Woodside will take majority control of the gas field, located off the coast of WA about 220 kilometres north west of Exmouth, by acquiring ExxonMobil’s 50 per cent stake for $US444 million, plus a future payment of $US300 million contingent on a final investment decision to develop the field. The energy giant already holds a 25 per cent stake in Scarborough after snapping up half of BHP Billiton’s interest in 2016.

The deal was announced as Woodside reported an 18 per cent increase in its full year net profit to $US1.02 billion ($A1.3 billion), due to improved market conditions and higher oil prices. Revenue for the year to December 31 declined 4.1 per cent as volumes dropped, and Woodside’s final dividend remains unchanged. Chief executive Peter Coleman said the Scarborough deal would allow the company to develop new supply that is likely to materially add value.

“The acquisition of the additional interest in Scarborough provides greater alignment, control and certainty over a low-cost, high value opportunity ahead of a global LNG supply gap,” he said. The deal takes Woodside closer to a plan to pipe gas from the Scarborough field to its Pluto liquefied natural gas plant at the onshore Burrup Hub in WA.

“Our Burrup Hub concept is advanced by our announcement today,” Mr Coleman said. Woodside said it will raise $2.5 billion to help fund the acquisition and early development of Scarborough by offering about 94 million new shares in an entitlement offer to shareholders. The offer will also provide funding for a second production unit at the Pluto LNG plant near Karratha, progress on its plan to pipe gas from the Browse field to the North West Shelf LNG plant in WA, and first-stage development of the SNE oilfield in Senegal. RBC Capital Markets analyst Ben Wilson said the large equity raising appeared to be designed to head off future requirements for funds, but questioned the nature of the Scarborough acquisition. “We have remaining questions as to why Woodside is deepening its portfolio of longer-dated undeveloped contingent resources when a liquids acquisition would better balance its portfolio,” he said.

The institutional portion of the equity raising is expected to be completed on Thursday, and Woodside shares are expected to remain in a trading halt until February 19.


Source: News.com



By Vivian Nereim, Wael Mahdi and Elena Mazneva on 2/14/2018


RIYADH, KUWAIT and MOSCOW (Bloomberg) — Russia and Saudi Arabia are seeking ways to amplify the success they’ve had working together to manage the oil market by reaching new energy agreements, including one on liquefied natural gas.


The two energy giants, which orchestrated an oil-cuts agreement that helped crude prices recover to a three-year high, may announce an LNG pact later on Wednesday, Saudi Arabian Energy Minister Khalid Al-Falih told reporters in Riyadh before a planned meeting with his Russian counterpart. It would be “a big announcement” from Saudi Aramco on a partnership in the super-chilled fuel, Kirill Dmitriev, chief executive officer of the state-run Russian Direct Investment Fund, said in the Saudi capital. Neither gave further details.

Russian President Vladimir Putin made a priority of expanding the nation’s LNG industry last year, and the country is seeking new partners in projects to overtake the fuel’s biggest producers, including Qatar and Australia. Saudi Arabia is looking from Russia to East Africa and the U.S. for natural gas assets as state-owned Aramco, known formally as Saudi Arabian Oil Co., hunts for ways to meet soaring domestic demand.


The Saudis target doubling their own gas production in the next decade, Al-Falih said Wednesday in Riyadh. Russia last year offered the kingdom an opportunity to join a planned $20 billion LNG project in northern Siberia called Arctic LNG-2 which may start in 2022 or 2023. No decisions on such a partnership have been announced. Al-Falih didn’t rule out buying LNG from Russia, in an interview in December, though he said at the time it wasn’t the most economical option. Russian companies are interested in building regasification terminals in Saudi Arabia because the kingdom will need these projects if it decides to import LNG, Russian Energy Minister Alexander Novak said earlier this month. Novak is holding meetings today in the Saudi capital.


Source: World Oil 2018