Australian shares rise as energy stocks and banks shine
Investors digested and assessed the impact of the latest U.S. Inflation print on global interest rate outlooks. As of 1236 GMT, the S&P/ASX 200 was up 0.6% to 8,035.1 points. The benchmark closed Wednesday's session 0.3% lower. Market watchers have ruled out a Federal Reserve rate cut of 50 basis points (bp) next week and instead bet on a reduction of 25 bp. Most sub-indices in Sydney traded in positive territory. The "Big Four" banks saw a 0.8% increase in their rate-sensitive financials. Energy stocks are trading near 1% higher, with major sector players Woodside Energy and Paladin Energy both up nearly 1%.
Financials drag Australia's shares down; US inflation data is in focus
Australian shares finished marginally lower on Tuesday, as losses among financial stocks outweighed gains by miners. Investors were cautious in advance of an important U.S. inflation report that could affect the Federal Reserve's next interest rate decision. The S&P/ASX 200 ended 0.4% lower, at 7978.7. The markets are weighing up whether the Fed will opt for a 25 basis point rate cut or a 50 basis point reduction during its policy meeting on September 17-18. Mathan Somasundaram is the CEO of DeepData Analytics. He said that Australian markets are closely correlated with the U.S., and are particularly influenced by U.S.
Britain announces that the Trans-Pacific Trade Agreement will come into effect by December 15
The British Government announced on Thursday that its agreement to join Comprehensive and Progressive Agreement for Trans-Pacific Partnership will enter into effect by December 15th this year, after receiving the final ratification needed. CPTPP, or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, is a free-trade agreement signed in 2018 by 11 countries: Australia, Brunei (Burma), Canada, Chile, Japan Malaysia, Mexico New Zealand, Peru Singapore, Vietnam. The UK is the sole European member of CPTPP, and it was the first country to join the agreement since its creation.
New Zealand passes law to reverse oil and gas exploration ban
New Zealand announced on Monday that it will pass laws before the end of the year to reverse an offshore oil and natural gas exploration ban and to take urgent steps to eliminate regulatory hurdles for importing liquefied gas (LNG), amid energy shortages. The right-of centre government wants to attract investment into the oil and gas industry in the country. This law will end the ban on exploration that has been in place since 2018 outside of onshore Taranaki. Energy prices have risen to the highest level among developed economies due to severe shortages in the past few weeks, according to Prime Minister Christopher Luxon.
New Zealand Refiner to Shrink. May Turn into Fuel Import Terminal
Refining NZ said on Thursday it is considering shutting New Zealand's only oil refinery and turning it into a fuel import terminal in the long run, but first will reduce its operations to cut costs and breakeven into 2021.Refining NZ's Marsden Point refinery has been under pressure due to competition from mega refineries in Asia and rising power and gas costs in New Zealand. Its woes worsened this year as COVD-19 lockdowns hammered fuel demand for planes and ships.In an update on a strategic review on the plant's future…
New Offshore Acreage Licensing to Drop 60% in 2020, Rystad says
Newly licensed offshore oil and gas exploration acreage is likely to fall by about 60% and onshore acreage by 30% compared with 2019 levels, Rystad Energy has said, as the Norwegian energy market analytics company expects more than half of the world’s planned licensing rounds to be canceled this year due to the combined effect of the COVID-19 pandemic and the low oil prices."This year was slated to be another remarkable year for exploration with about 45 countries launching at least 52 lease rounds, about 60% of them in offshore areas.
Brent, WTI Fall as Coronavirus Spreads
Brent fell by 10% on Monday, and U.S. crude to below $30, as emergency rate cuts by the U.S. Federal Reserve and its global counterparts failed to tame markets and China's factory output plunged at the sharpest pace in 30 years amid the spread of coronavirus.Brent crude was down $3.58, or 10.6%, to $30.27 a barrel by 1231 GMT. The front-month price had risen $1 earlier in the session.U.S. West Texas Intermediate (WTI) crude was at $29.24, down $2.49 or 7.8%.To combat the economic fallout of the pandemic, the Fed on Sunday cut its key rate to near zero…
Beach Energy Eyes Offshore New Zealand
Australian oil and gas exploration and production company Beach Energy Limited has signed an agreement with OMV GSB Oil Exploration to acquire a 30% participating interest in exploration permit (EP) PEP50119 in the Great South Basin, offshore New Zealand.Under the agreement, Beach will acquire a 30% participating interest in the permit in exchange for funding a 30% share of the Tawhaki-1 well cost and the associated work program and budget. The estimated capital exposure is approximately $25 million net to Beach.The transaction is subject to New Zealand government and regulator approval…
Airswift Eyes APAC Growth
Airswift, the global workforce solutions provider for the energy, process and infrastructure sectors, announced two senior hires to build upon recent successes in the Asia Pacific (APAC) region. Fueled by the region’s energy and infrastructure markets, the appointments follow 20% year-on-year growth for the company.Based in Brisbane, Ryan Carroll has been appointed as Regional Director, Australia & New Zealand, where he will be responsible for all in-country operations. Carroll has four years’ recruitment experience in Australia across industries such as civil engineering…
Xodus Hires Rivers
Energy consultancy Xodus Group said it has appointed Stephen Rivers as Subsea & Pipelines Manager for Asia-Pacific as the company targets strategic growth and new projects in the region. He will be based in in Perth, Australia.Rivers’ previous roles have included Engineering Director for Peritus International Pty Ltd and Senior Vice President for INTECSEA for Australia and New Zealand.With more than 30 years' in the oil and gas industry, Rivers commenced his career in subsea pipeline construction in the North…
How to Determine Which Countries Have the Best Energy Policies
Which countries have the best energy policies? This is an interesting, and rather obvious, question, considering that every country’s energy practices impact the world in one way or another. But it’s one you don’t often hear asked.That is probably because it’s hard to compare countries in any sensible and fair way, given the differences in population, size, economy and resources.Still, the world needs to know who does it best. The challenge is to measure performance against a set of agreed indicators, that governments…
July: Earth's Hottest Month Ever Recorded
According to the latest monthly climate report from the U.S. National Oceanic and Atmospheric Administration (NOAA), July 2019 was hottest month on record for the planet and Polar sea ice melted to record lows.Much of the planet sweltered in unprecedented heat in July, as temperatures soared to new heights in the hottest month ever recorded. The record warmth also shrank Arctic and Antarctic sea ice to historic lows.The average global temperature in July was 1.71 degrees F above the 20th-century average of 60.4 degrees…
EM&I Bags Japanese FPSO Operator Contract
International asset integrity specialist EM&I Group received an order from a major Japanese FPSO operator for an FPSO based offshore New Zealand.The order initially for tank inspection during which time EM&I’s ‘NoMan’ robotic tank inspections that avoid confined space entry and working at height while increasing tank availability and achieving a 90% reduction in the man hours normally required.The provider of asset integrity, inspection and repair & maintenance services to the oil, gas and energy industries, said in a press release that if the tank inspection reveals a requirement for repairs, EM&I will be invited to undertake thes
Subsea Integration Alliance Wins Esso Contract
Exxon Mobil subsidiary Esso Australia Pty Ltd. awarded integrated subsea engineering, procurement, construction, installation and commissioning (EPCIC) contracts to Subsea Integration Alliance, which comprises OneSubsea, a Schlumberger company, and Subsea 7.The work scope includes engineering, procurement, construction and installation of two production wells in a water depth of approximately 45m that will be tied-back to the Longford onshore gas plants. Project management and engineering will be provided by OneSubsea and Subsea 7 from local offices in Perth and Melbourne, Australia.
OMV Buys Shell's NZ Assets
Royal Dutch Shell plc announced Friday it has completed the sale of its New Zealand upstream oil and gas assets, marking the supermajor's exit from the Oceania country.The $578 million sale to Austrian integrated oil and gas company OMV includes the Māui, Pohokura, and Tank Farm assets, as well as Shell’s interest in (and operatorship of) the Great South Basin venture, which was subject to a separate agreement.OMV has been partner in the acquired assets, formerly with a 26 percent stake in Pohokura and 10 percent in Maui…
OMV, Sapura Energy Sign Pact
Malaysia’s Sapura Energy has entered into a heads of agreement with Austria’s OMV to form a strategic partnership and acquire half of Sapura Upstream for $1.6 billion."Under the agreements, OMV Exploration and Production GmbH (OMV E&P), a wholly-owned subsidiary of OMV Aktiengesellschaft, will buy a 50 per cent stake of the enlarged issued share capital in a newly-formed joint venture company, SEB Upstream Sdn Bhd (SUP), based on an enterprise value of up to USD1.6 billion comprising an equity value of up to USD1…
OMV Forms JV with Sapura
Austria's OMV has agreed to establish a joint venture with Malaysia's Sapura Energy Bhd , paying $540 million for a 50 percent stake in its exploration assets in line with its strategy to expand in Southeast Asia.Sapura Energy will transfer $350 million of its debt into the new firm, called SEB Upstream Sdn Bhd (SUP), of which OMV has agreed to refinance half, an OMV spokesman said.OMV also agreed to pay up to an extra $85 million, dependent on whether exploration in Mexico is successful and on oil prices, the OMV spokesman said, adding that there was no time frame for the payment.OMV shares were down 4.4 percent at 48.04 euros 1159
Chevron Names Green President of N. America E&P
Steven W. Green has been named president of Chevron North America Exploration and Production, succeeding Jeff Shellebarger, who is retiring from Chevron after 38 years of service.Green will transition from his current role as president of Chevron Asia Pacific Exploration and Production to oversee the oil major's exploration and production activities throughout North America, including Canada, California, the Gulf of Mexico, Pennsylvania and the Mid-Continent region of the U.S. He will report to Jay Johnson, Chevron’s executive vice president…
Industry Groups Welcome Arctic Heavy Fuel Oil Ban
The Clean Arctic Alliance and indigenous groups welcomed the support given by member states to commence work on developing a ban on the use and carriage of heavy fuel oil in Arctic waters as the International Maritime Organization’s Marine Environment Protection Committee (MEPC 73) closed last week in London.Support for commencing work, to mitigate the risks of using and carrying HFO fuel in the Arctic which includes developing a ban, at the PPR6 technical meeting, in February 2019, was voiced by Austria, Bangladesh…
Petrofac Secures Well Engineering Contracts
Petrofac has strengthened its global Well Engineering contracts portfolio following a series of award wins worth a combined value of around $20 million.Petrofac secured an exclusive five-year Well Operator Services contract from independent Exploration & Production company, Tailwind Energy Ltd (Tailwind), following Tailwind’s recent purchase of the Triton Cluster. Under the terms of this arrangement, Petrofac will act as Well Operator for the Gannet E, Belinda and Evelyn licence areas in the Central North Sea.The…
