Shell Sells Out of Woodside Petroleum for $2.7 Bln
Royal Dutch Shell on Monday sold its entire stake in Australia's largest independent oil and gas company Woodside Petroleum Ltd for $2.7 billion as it pushes ahead with its vast disposal programme. Shell, which has been slowly divesting its Woodside holding, initially said its Shell Energy Holdings Australia Limited (SEHAL) unit had struck a deal with two investment banks to sell 71.6 million Woodside shares for A$31.10 ($23.79) apiece.
Australia Ramps Up LNG Exports
Australia LNG exports tipped to rise to 74 mt in 2018-19; Australia's share of Japan, Korea LNG imports seen growing. Australia expects to increase exports of liquefied natural gas (LNG) by 16 percent from mid-2018 as $180 billion in new projects hit their stride, nearly catching up with Qatar, the world's top supplier. Rising LNG exports coupled with higher prices for steel-making commodities and thermal coal should see Australia's overall resource and energy export earnings increase 2 percent in the year to end-June 2018…
BHP Profit Surges, but Looks to Exit U.S. Shale
Underlying net profit jumps to $6.7 bln from $1.2 bln. BHP Billiton, the world's largest miner, reported a surge in underlying full-year profits on Tuesday and said it would exit its underperforming U.S. shale oil and gas business, pleasing disgruntled shareholders who had called for a sale. The Anglo-Australian mining giant, which is under pressure from U.S. hedge fund Elliott Management to rethink its investment in oil and boost shareholder returns, was buoyed by a recovery in industrial commodities markets.
Glencore Buys Hunter Valley Coal Stake
Deal follows bidding war; Glencore also seeking Mitsubishi stake. Glencore on Thursday bought a 16.6 percent stake in assets in Hunter Valley, Australia, for $429 million from China's Yancoal, gaining some of the coal operations it had sought in a bidding war which Yancoal won. Rio Tinto last month confirmed Yancoal Australia was the preferred bidder for its Australian Coal & Allied unit after the company added an 11th-hour sweetener. But on Wednesday…
Australia Cuts Resources Export Revenue Forecast on Iron Ore Outlook
Australia has revised down the value of its resources and energy export earnings in the year to end-June 2017 by 4.6 percent, or nearly A$10 billion ($7.6 billion), due largely to falling prices for iron ore, its most valuable export. The downward revision to A$205 billion mainly reflects an earlier than expected decline in iron ore prices since the previous forecasts were published three months ago, the Department of Industry, Science and Innovation said.
BHP Chairman Calls $20 Bln Shale Investment a Mistake
BHP Billiton's Chairman Jac Nasser said on Thursday BHP's $20 billion investment in U.S. shale oil and gas six years ago was, in hindsight, a mistake. BHP entered the shale business at the height of the fracking boom in 2011 and invested billions more developing the operations. The fall in oil prices since then has led to pre-tax writedowns of about $13 billion on the business. Activist shareholder and hedge fund Elliott Management, holding 4.1 percent of BHP's London-listed shares…
Rio Picks Yancoal for Coal Sale
Rio sticks with Yancoal over Glencore for coal mine sale. Rio Tinto on Monday confirmed Yancoal Australia as the preferred buyer for its Australian Coal & Allied unit after the China-backed company added an eleventh-hour sweetener to top a rival bid from Glencore. Yancoal, increased its offer to $2.69 billion from $2.45 billion, adding $240 million in unconditional guaranteed royalty payments to a cash offer of $2.45 billion. "The revised…
Rio Tinto recommends Yancoal coal offer over Glencore
Rio says Yancoal deal could be agreed more quickly; says Yancoal has improved offer. Rio Tinto selected Yancoal on Tuesday to buy its Coal & Allied division in Australia for $2.45 billion, surprising commodities trading giant Glencore which had put in a higher bid. Earlier this month, Glencore offered $2.55 billion cash for Rio's coal mines in the Hunter Valley region of New South Wales, beating a previous offer from Yancoal, which is based in Australia and owned by China's Yanzhou Coal Mining Company.
Elliott Presses BHP to Shed Petroleum
BHP petroleum business has value of more than $20 billion. Activist investor Elliott Management raised the pressure for strategic changes at BHP on Tuesday, calling for an independent review of the mining giant's petroleum business. Elliott, which has built up a 4.1 percent stake in BHP's London-listed arm and is urging changes to boost shareholder value, said there were clear signs the market was receptive to a new strategy for BHP. "There…
Elliott to Court BHP's Australian Shareholders
Elliott to meet BHP shareholders in Australia; focus on U.S. oil division. Elliott Management will meet with BHP Billiton's Australian shareholders this week as the activist investor pushes for strategic changes at the world's biggest miner, two sources familiar with the matter said on Monday. The sources, who could not be named because they were not authorised to speak publicly about the issue, told Reuters that Elliott was seeking feedback from other investors about its proposed overhaul of BHP. Elliott's U.S.
Aurizon Coal Loss to Feed Coal Prices
Aurizon cuts profit guidance after cyclone. Australian coal railway line operator Aurizon Holdings Ltd on Tuesday unveiled a bigger-than-expected estimate for lost coal haulage from Cyclone Debbie, which analysts said will help underpin coal prices in coming weeks. Aurizon's first forecast for lost shipments for the year to June 30 since the cyclone flooded out much of its rail network matched or exceeded the high-end of analysts' estimates.
Glencore to Restart Australia Coal Mine as Prices Surge
Glencore said on Tuesday it would restart a coking coal mine in southeastern Australia that was shuttered more than two years ago, with a resurgence in prices for the commodity breathing new life into the sector. Less than a year after the coal industry was declared to be in terminal decline, markets for coal used to generate power and make steel have surged - boosted by moves in China to mine less of its own coal and import more. Glencore acquired the underground Integra mine…
BHP: GoM Mad Dog Project Viable with sub-$50 Oil
BHP Billiton said the second phase of its Mad Dog offshore joint venture with BP in the Gulf of Mexico was economical at oil prices below $50 per barrel. Originally slated for development in 2013, the project has been deferred due to low oil prices and moves to reduce construction costs. After losing three-quarters of its value from mid-2014 to early 2016, the price of benchmark U.S. crude has rallied more than 80 percent since February to nearly $50 per barrel. Reporting by James Regan
BHP, Vale to Fight Reinstated $6 bln Claim for Samarco Disaster
BHP Billiton and Vale SA said on Friday they would appeal against a Brazilian court's decision to reinstate a $6 billion public civil claim from Brazilian authorities over last year's Samarco iron ore mine disaster. Samarco, along with BHP and 50-50 joint-venture partner Vale, had agreed in March to settle that claim with staggered payments over a 15-year period, with the total amount dictated by the clean-up and repairs. Brazil's government expected the cost of the work to reach 20 billion reais…
BHP boosts exploration spend as focus narrows to oil, copper
BHP ups exploration budget to $900 mln; focus on oil and copper. BHP Billiton plans to lift exploration spending by 29 percent next year, allocating nearly all its $900 million budget to finding oil and copper, as big miners bet on a narrow pick of commodities to drive future growth. Miners fret about future production even in years of huge oversupply. But the move by the world's biggest miner to lift exploration spending signals a shift…
Technip, FMC Target Oil Services 'Big League' with Merger Deal
France's Technip on Thursday announced an all-stock merger with U.S. rival FMC Technologies, as it seeks to offset weaker spending on exploration and production by cash-strapped oil companies. The new group, to be domiciled in London, would have combined revenue of $20 billion and the merger is expected to deliver annual pretax savings of at least $400 million by 2019, as well as boost earnings per share significantly, the companies said in a statement.
Australia State Bans Underground Coal Gas Drilling
Australia's Queensland state on Monday banned underground coal gasification, a controversial process used to convert coal into gas. Unlike fracking, which involves pumping fluid into coal seams to cause fractures, the method by which unearthed coal, known as underground coal gasification, or UCG, takes place entirely below the surface, raising concerns over water contamination and greenhouse gas emissions. The ban on UCG was initiated by the state's mines minister…
Total to Broaden LNG Cooperation with Korea Gas
French oil and gas company Total said on Wednesday that it signed an agreement with Korea Gas to extend the cooperation in their liquefied natural gas (LNG) businesses. The agreement is designed to jointly identify and pursue opportunities to develop the LNG market in Asia and in new importing countries, Total said in a statement. The French group added that the firms would also cooperate in LNG trading and terminal optimisation. Total and…
Monaco Raids Unaoil Offices Over Global Oil Corruption Probe
Monaco authorities raided the offices of Unaoil, an energy services company, and the homes of its directors after Britain asked for help investigating alleged corruption in the global oil industry. Monaco's government said on its website that it acted after receiving an urgent request for international judicial assistance in criminal matters from Britain's Serious Fraud Office (SFO). Unaoil directors were questioned by Monaco police on Tuesday and Wednesday, the government said.
Total Denies in Talks to Buy Engie Exploration and Production Unit
French oil major Total denied on Thursday that it was in talks about buying domestic rival Engie's exploration and production (E&P) activities. Sources familiar with the situation told Reuters that Total had held talks to buy all or part of Engie's E&P business, worth about 5 billion euros ($5.58 billion). "Total categorically denies any negotiations about buying Engie's exploration-production activities," Total said in an emailed statement.
