Woodside Energy Group Ltd. CEO Meg O’Neill has emphasized the need for regulatory reform in Australian LNG projects to ensure domestic supply and attract foreign investment. O'Neill's statement comes as the company's expansion project for LNG exports is nearing completion. However, a recent court ruling has invalidated a seismic survey for the Scarborough project, although it has not impacted the company's shipping timeline. On a related note, Halliburton Co. CEO Jeff Miller has expressed optimism about the recent mega-mergers in the US natural gas and oil industry, seeing them as beneficial for business and indicative of the sector's long-term value. Meanwhile, Origin Energy, a member of the east coast gas export cartel, is in talks to import liquefied natural gas (LNG) through a proposed terminal in South Australia. This move contradicts the purpose of the terminals, which was to introduce global competition and prices to the gas export cartel. Additionally, an $18.7 billion takeover bid for Origin Energy is unlikely to succeed, as the company's largest shareholder, AustralianSuper, plans to reject the offer. The bid is considered below fair value due to Origin's ownership of the Eraring coal-fired power station, which will continue to operate and receive significant public subsidies as it lacks affordable gas to support the transition away from coal power in New South Wales. [678d896f][f61cac3e][912450c2]
Origin Energy's biggest investor, AustralianSuper, has offered to provide capital to help the company transition to lower carbon energy after a $20 billion takeover deal from two North American bidders was blocked by shareholders. The buyout of Origin by Brookfield and EIG fell short of the minimum 75% required for the transaction. AustralianSuper, which owns more than 17% of the register, led the resistance to the deal. Shares in Origin fell sharply after the vote. Origin's chairman and CEO stated that the failure of the deal does not put pressure on the company to alter its strategy or change its transition plan.
In a separate development, Indian Oil's acquisition of Mercator Petroleum has been delayed beyond the National Company Law Tribunal (NCLT) timeline due to the lack of approval from the Department of Investment and Public Asset Management (DIPAM). The deal, which marked a rare acquisition by a public sector company through the insolvency process, has faced delays in securing government approvals. Creditors to Mercator are considering approaching the NCLT to direct Indian Oil to complete the deal. The Mumbai bench of the NCLT had approved Indian Oil's acquisition of Mercator in November 2023. The acquisition is valued at Rs 148 crore, with secured creditors set to receive Rs 135 crore and operational creditors to receive Rs 5.40 crore. The acquisition is seen as beneficial for Indian Oil as Mercator has oil and gas search blocks near its Koyali refinery block in Gujarat. The block has an estimated 4.55 crore barrels of oil reserves. [07b57f13]
TotalEnergies has awarded $3.7 billion in contracts for the Kaminho project, which will develop the Cameia and Golfinho fields located 100 kilometers offshore Angola. The project has been greenlit and is expected to proceed. The contracts were awarded by TotalEnergies, and the chief executive of TotalEnergies is Patrick Pouyane. [e28cd94f]
TC Energy's planned oil pipeline spin-off, South Bow, aims to supply more Canadian crude to U.S. Gulf of Mexico refiners but faces competition from Enbridge. South Bow will have access to third-party marine facilities, limiting its Gulf export options. The spin-off will issue C$7.9 billion ($5.75 billion) in debt and expects to carry debt below five times its EBITDA at spin. South Bow plans to deliver 2-3% compound annual growth, underpinned by a 16-mile crude pipeline tying into International Petroleum Corp's Blackrod oil sands project by 2026. [191b329e]
ExxonMobil has agreed to sell its Malaysian oil and gas assets to state energy firm Petronas, exiting the country's upstream sector where it used to be a dominant producer. The US major has been trying to sell its aging upstream assets in the country since 2020. Petronas has taken over operations of Exxon's assets, including the country's flagship Tapis oilfield in Terengganu which began production in 1978. Exxon's staff would be transferred to Petronas as part of the deal. The terms of the deal were not immediately known. Exxon operates 35 oil and gas platforms in 12 fields offshore Terengganu, and has a working interest in another 10 platforms in five fields in the South China Sea. The combined operations produce about 15 percent of Malaysia's crude oil and condensate of 600,000 barrels a day, and more than half of Peninsular Malaysia's natural gas of more than 2 billion cubic feet per day. [bc409459]
Zachry Holdings, the primary contractor for the construction of the $10 billion Golden Pass LNG project in Texas, jointly owned by QatarEnergy and Exxon Mobil, filed for Chapter 11 bankruptcy protection on Tuesday. The company cited challenges at the project site as the main reason for this move. Exxon Mobil, holding a 30 per cent stake, plans to review the project's timeline and provide updates in due course. Zachry Holdings, which held a $5.8 billion stake in the project, announced it was pursuing a "structured exit" from the project. Despite the bankruptcy, rival LNG developer Venture Global LNG stated that Zachry's bankruptcy would not materially impact work at its Plaquemines LNG export facility in Louisiana. [5983edc8]
Western pension funds, including those managed by the states of Washington, New York, and California, have indirectly invested in Russia's Yamal LNG through a New York-based alternative investment manager, Stonepeak, and its $14 billion Infrastructure Fund IV. Stonepeak's purchase of Seapeak LLC, a major owner of gas carriers, included ownership stakes in six of the 16 ice-class vessels that have exported fuel from Yamal this year. The Novatek PJSC-led Yamal operation is Russia's largest active gas export terminal and a vital piece of its efforts to replace its lucrative trade with Europe. European buyers take a sizeable portion of Yamal's gas, and European insurers continue to underwrite the sector. California Public Employees' Retirement System (Calpers) has raised concerns with Stonepeak about its Russian investments and has taken actions to remove these assets from its portfolio. There are calls for increased transparency from investment funds to allow better due diligence. [ab28d26f]