19 minute read
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BHP BILLITON HANGS ON TO CRINUM COALMINE
BHP Billiton has decided against selling a struggling coalmining operation near Emerald, Queensland, one of several assets in Australia mining companies have been seeking to offload amid a slump in coal prices.
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BHP had launched a review of its jointly owned Gregory Crinum operation in February, several months after a loss-making mine was closed.
MINERS FLAILING AS 10-yEAR GOLD RUSH GRINDS TO A HALT
IT has been a quarter from hell for Australia’s gold industry, and the wallets of the nation’s gold mining executives are lighter as a result.
The sector has been reeling in recent weeks, with a wave of redundancies, salary cuts and write downs illustrating how painful life became as the 10-year bull run in gold prices ground to a swift halt.
CARBON OFFENSIVE SHIFTS TO OIL BUT SPARES NATURAL GAS
Oil is next in US President Barack Obama’s carbon offensive. With a regulatory barrage under challenge in court and Congress, the administration has been trying to slash coal combustion in the generation of electric power.
Now the president is pulling oil—without natural gas— into the line of fire. In a speech in Chattanooga, Tenn., he supported “accelerating our clean energy and natural gas revolutions.” Then he declared: “Now is the time to double down on renewable energy and biofuels and electric vehicles and to put money into the research that will shift our cars and trucks off oil for good.”
APACHE’S BIANCHI WILDCAT FINDS GAS OFF W. AUSTRALIA
Apache Energy has made a natural gas discovery with its Bianchi-1 wildcat, which was drilled in retention lease WA-49-R offshore Western Australia.
The find is within a separate fault block down-dip and 6 km northeast of the company’s April 2011 Zola-1 gas discovery and about 11 km north of the earlier Antelope find.Wireline logging and pressure testing confirmed 112 m net gas pay in Bianchi-1 in the Triassic-age Mungaroo formation.
SANTOS LNG PORTFOLIO ON TRACk
Santos Ltd says its liquefied natural gas (LNG) portfolio is on track, as the group looks to unlock more of its resources.
Santos chief executive David knox told shareholders at the gorup’s annual general meeting the LNG portfolio was critical to the business, but also flagged a new willingness to innovate. “The result is a very different Santos to the one you saw four years ago, but it will deliver significant value to shareholders,” Mr knox said.
PAPUA NEW GUINEA - INDOCHINE INTERSECTS HIGH GRADE GOLD
NEW powers for health and safety representatives in all mines following the Pike River disaster are a “scary proposition” and should be limited to coal mines only, a gold mining company says. Bernie O’Leary, who manages Oceana Gold’s Macraes Mine in Otago, on Thursday, urged parliament’s industrial relations select committee to pare back the proposed new inspectors’ roles in the Health and Safety (Pike River Implementation) Bill.
The bill includes recommendations from the Royal Commission into the Pike River Coal Mine disaster in November 2010 which left 29 men dead following explosions in the mine.
CHEVRON REPORTS SECOND QUARTER NET INCOME OF $5.4 BILLION
U.S. energy giant Chevron Corp. (CVX) reported weak second quarter earnings on lower crude prices and soft downstream margins. Earnings per share (excluding adjustments for foreigncurrency effects) came in at $2.62, below the Zacks Consensus Estimate of $2.96 and the previous year’s $3.57.
The integrated supermajor’s quarterly revenue decreased 8.4% year over year to $57,369.0 million. However, it managed to beat the Zacks Consensus Estimate by 1.5% amid elevated North American gas prices. Exxon Mobil Corp. (XOM) – the world’s largest publicly traded oil company – reported lowerthan-expected earnings yesterday. In fact, the quarter under review has been disappointing for ‘Big Oil’ with European biggies Royal Dutch Shell plc (RDS.A) and BP plc (BP) also coming out with belowpar results.
Upstream: Chevron’s total production of crude oil and natural gas decreased by 1.6% from the year-earlier level to 2,582 thousand oil-equivalent barrels per day (MBOE/d). Volume gains in U.S. and contribution from the newly commenced Angola liquefied natural gas (LNG) project were more than negated by normal field declines.
The U.S. output remained flat year over year, while Chevron’s international operations (accounting for 74% of the total) delivered experienced a 2.1% decline in volumes. Moreover, losses on the production front were accompanied by depressed crude oil prices, with the net effect resulting in an 11.9% yearover-year decline in upstream earnings to $4,949.0 million.
Chevron’s production outlook remains one of the most robust in its peer group, with a number of major initiatives scheduled to come online during the next few years. Major start-ups during the last few months include the LNG project in Angola, deepwater Usan project in Nigeria and the Caesar/Tonga project in the deepwater Gulf of Mexico.
Amongst the major upcoming projects, Chevron’s Gorgon and Wheatstone natural gas initiatives in Australia are progressing well, while the Jack/St. Malo and Big Foot initiatives in the deepwater Gulf of Mexico remain on track for 2014 start-up.
Downstream: Chevron’s downstream segment achieved earnings of $766 million, 59.3% lower than the profit of $1,881.0 million last year. The results were negatively influenced by lower refined product sales margins and higher repair/maintenance expenses in its domestic business. Additionally, last year’s results were buoyed by the sale of its South korean assets.
The second-largest U.S. oil company by market value after Exxon Mobil spent $9,452.0 million in capital expenditures during the quarter. Approximately 91% of the total outlays pertained to upstream projects.
As of Jun 30, 2013, the San Ramon, California-based company had $20,630.0 million in cash and total debt of $19,964.0 million, with a debt-to-total capitalization ratio of about 12.3%. As part of the stock repurchase program announced in 2010, Chevron repurchased $1,250.0 million worth of shares in the second quarter.
RETENTION LEASE APPROVED
Woodside Petroleum Ltd said on Friday changes to its Browse gas field retention lease that would allow it to pursue a wider range of development options have been approved.
The company decided in April to shelve a plan to develop the gas field via a $45 billion onshore plant and said it would instead consider a variety of other options, such as a floating liquefied natural gas (LNG) plant or a smaller onshore plant.
“The joint venture participants still need to actually choose a final concept for the development,” Laura Lunt, Woodside spokeswoman told Reuters on Friday.
The variation to the Browse retention leases, granted by the state of Western Australia, will apply to the end of 2014. Woodside and its joint venture partners in the development are widely expected to opt for a floating LNG plant. Analysts estimate that choosing to use floating LNG technology would mean a cost savings of 20 percent.
Global energy firms have invested $140 billion into six LNG plants in just two and half years as Australia ramps up production on its way to becoming the world’s largest exporter of the clean burning energy source.
But Australia’s LNG sector has seen investor interest cool due to cost overruns and with competition from North America, where new supplies of gas have been exploited from shale.
Earlier this year, Woodside chief executive Peter Coleman said a floating facility has “the potential to commercializes the
Browse resources in the earliest possible time frame.”
Woodside also signed a technology agreement to develop Browse using technology owned by Royal Dutch Shell.
Shell, the second-largest shareholder in Browse and a 24 percent owner of Woodside, is considered to be the global frontrunner in developing floating LNG technology and has lobbied to use it to develop the Browse gas field.
Other joint venture partners include BP Plc, PetroChina, Mitsui & Co and Mitsubishi Corp.
SiR RicHaRd BRanSon excluSive d&d auStRalaSia inteRview
Earlier this year I was invited and had the great pleasure to meet and speak with Sir Richard Branson at a function in Perth, Western Australia.
I found him to be a very friendly and approachable gentleman and was able to arrange the following exclusive Q&A interview with this truly iconic figure.
Len Fretwell with Sir Richard Branson
D&D Q: As tiger Airways and skywest Airlines were both budget airlines primarily operating in the fly-in-fly-out and regional markets, do you have any plans to make changes to the operation of these acquisitions or further expand in these growing segments?
SRB A: When Virgin Australia re-launched in 2011, we wanted to become the airline of choice in every market.
After joining with Skywest and Tigerair Australia, we now have a very strong offering in all segments of the market and cater for travellers of every nature – whether it is business or leisure.
With the best value for money across every market segment, Virgin Australia is now very well placed to grow across all areas and move us forward in a positive direction.
D&D Q: How do you think these Virgin Australia acquisitions will benefit jobs and tourism in these important market segments, especially in growing regional markets including Western Australia?
SRB A: The Virgin brand has a reputation for bringing benefits to customers and tourism whenever it enters a new market – and it’s the same for Virgin Australia.
In fact, when Virgin Australia launched Business Class across its domestic network just over a year ago, fares came down by approximately 20-30%. Through the Skywest deal, we can now offer a great service from the East to West Coast of Australia, unlocking new opportunities to raise the competition through our great value fares and customer service.
In terms of Tigerair, we have supported their growth and this will benefit jobs and tourism in Australia by bringing more competition to the budget travel market segment. We will also look to add value to the airline by sharing our expertise all areas to further strengthen Tigerair and its value to travellers in Australia.
D&D Q: What are your plans for these new Virgin Australia regional airline acquisitions, will there be any changes to the service or routes?
SRB A: It’s still early days. At the moment, we are trying to integrate the two businesses into Virgin Australia and rebrand them both in the air and on the ground.
Australia has one of the most dispersed populations in the world and value for money flights is vital to the country’s growth. One of our key aims for the future will be expanding Virgin Australia so we can continue to bring competition to travelers throughout Australia.
D&D Q: Do you see many other business opportunities in Australia?
SRB A: I was recently in Queensland, the home of Virgin Australia, where Virgin Blue was founded, to meet the team at Bank of Queensland to talk about how we are going to expand Virgin Money in Australia. We see enormous opportunities to work together and build the brand here into a truly national competitor.
D&D Q: Your support of charities is well known, how do you choose the charities that you support?
SRB A: My support for charitable organisations is guided by the causes and issues that I care about. you can imagine that we receive a good number of requests each year, and many of those I have always been proud of reach us through Virgin Unite, Virgin and our people’s efforts the Virgin Group’s non-profit to “change the game for foundation. So, the first good”. Since my knighthood, question we ask is whether a I have started to dedicate cause aligns with our goals and more and more of my time passions. If the answer is yes, to the Virgin Group’s not-forwe try to figure out whether profit arm, Virgin Unite, and a charity is an appropriate try and raise the awareness of partner and will make good many issues close to my heart. use of our investment. What is Whether it is setting up a the potential impact, and are centre for entrepreneurship there other ways of achieving which mentors young even greater impact? Most entrepreneurs through their importantly, we are looking for business ideas (Branson ideas and proposals that are Centre of Entrepreneurship) entrepreneurial. Indomitable or incubating an organisation entrepreneurial spirit has which is framing a new always been at the heart of approach to business where Virgin’s success, and so it makes people and planet are priorities perfect sense to us to look for alongside profit (The B-Team), that spirit in the projects and we all have a responsibility to initiatives that we support. I leave the planet in a better have always believed that condition than we found it. throwing money at a problem doesn’t solve anything. For D&D Q: In choosing your team, lasting impact, you need an what are three key questions entrepreneurial solution. that you ask in an interview? That’s what Virgin is all about. SRB A: We don’t really have a D&D Q: How would you general recruiting process at describe the experience of Virgin and I don’t have any set being Knighted by the Queen questions that I ask – it depends and what effect has this on the type of business and honour had on you? the position we are looking SRB A: Being knighted was tend to pick out employees such a terrific honour. It was who are inquisitive about the such a lovely occasion and my bigger picture, and have a family and I enjoyed every “can do” attitude, are positive second of it. Ever since, I and enthusiastic and most have tried to live up to it and importantly, have a strong continue to grow the Virgin sense of fun! I have found that Group in a positive way. We’ve choosing enthusiastic, talented always been fearless of the and positive people has helped big monopolies and ventured to shape a positive character into stagnant industries that for our businesses. frustrated us because we thought we could do better. to fill. However as a rule we
D&D Q: You seem to have the Midas touch in business, what is the secret to your success?
SRB A: My top 5 ‘secrets’ would be:
No. 1: Enjoy What you Are Doing. Because starting a business is a huge amount of hard work, requiring a great deal of time, you had better enjoy it.
No. 2: Create Something That Stands Out. Whether you have a product, a service or a brand, it is not easy to start a company and to survive and thrive in the modern world. In fact, you’ve got to do something radically different to make a mark today. No. 3: Create Something That Everybody Who Works for you is Really Proud of. Businesses generally consist of a group of people, and they are your biggest assets.
No. 4: Be a Good Leader. As a leader you have to be a really good listener. you need to know your own mind but there is no point in imposing your views on others without some debate. No one has a monopoly on good ideas or good advice.
No. 5: Be Visible. A good leader does not get stuck behind a desk. I’ve never worked in an office – I’ve always worked from home – but I get out and about, meeting people. It seems I am traveling all the time but I always have a notebook in my back pocket to jot down questions, concerns or good ideas.
D&D Q: Will Sir Richard Branson ever retire?
SRB A: I have no plans to retire and would like to think that when I am 70, 80 or even 90, I am still trying out new challenges – however my wife Joan may have something to say about this!!
Interview by Len Fretwell
Setting tHe BencHMaRk FoR luxuRy aPaRtMent living in tHe PilBaRa
Offering a luxurious lock-and-leave lifestyle for those working in the mining and resources sector in the North West, Finbar’s new high-rise complex, Pelago West, is the first of its kind in karratha.
Offering a social lifestyle as well as spectacular resort-style facilities, the stylish new landmark was officially opened at the end of May by the Hon. Brendan Grylls.
Now fully leased, it has helped change the face of accommodation in karratha.
Ronald Chan, Chief Operations Officer at Finbar, said residents of Pelago West were enjoying the lifestyle and social interaction the luxury apartments provided.
“Residents and tenants are able to mingle and create a social network, catching up by the pool deck, at the BBQ area or in the fully equiped gym, not to mention the Blanche Bar downstairs, which is fast becoming the place to catch up with mates,” Mr Chan said.
“The apartment facilities are fully managed by a strata company, virtually eliminating any ongoing accommodation hassles.” Pelago West offers a range of lifestyle options, including spacious and modern apartments with one, two or three bedrooms, 24-hour security and a range of amenities.
“With local shopping and karratha’s CBD on their doorstep, FIFO workers can enjoy luxury living with a great lock-and-leave lifestyle,”
Mr Chan said.
Pelago West tenant Tony Mazzei lives in Melbourne but works in karratha five days a week. He said the first-class high-rise complex provided him with a home away from home.
“Pelago West actually feels more like home than Melbourne, it offers a great lifestyle and location,” he said.
“When I first walked into the Pelago West complex I was blown away by its presentation and facilities. It’s a much better option than renting out a home in karratha. you have the lifestyle as well as the convenience of living in the heart of the CBD.
“Apartment living offers minimal maintance, which is great for my lifestyle. It provides facilities that accommodate singles, couples and families.”
Offering an unrivalled work/life balance, Pelago West is ideally situated at the junction of Sharpe Avenue and Warambie Road, within walking distance of what is to become a revitalised city centre. The architectually designed resort-style complex features beautifully landscaped gardens, a 25m pool, state-of-the-art gym, sauna, barbecue area and children’s play area. Pelago West apartments overlook the natural beauty of the azure waters of Nickol Bay and the stunning scenery of the Burrup Peninsula. The central location offers direct access to karratha’s coastal lifestyle.
All apartments offer secure, low-maintenace, 6-star energy-rated living and immeasurable social benefits, all enjoyed with the comfort of air-conditioning and dehumidifiers.
The next stage of Finbar’s Pelago project is currently under construction. The nine -storey Pelago East complex is due to open in December this year and will feature 174 one, two and three-bedroom apartments, plus a host of lifestyle facilities, including a 20m swimming pool, , sauna, rooftop terrace, residents lounge, a fully equipped gymnasium and games room.
To register your interest in leasing or buying an apartment and becoming part of the Pelago community, contact John Bell on 0413 153 227.
For more information visit pelago.com.au.
Karratha’s only high-rise luxury development
LONG TERM LEASES ARE AVAILABLE IN WA’S NORTH WEST.
Is your organisation starting to question whether it should really be in the space of owning, managing and maintaining property? For many companies, it may not be the best use of valuable capital and resources, taking the focus away from core business activities.
Now there is no need to burden your business with ongoing property concerns. Remove the majority of the property maintenance issues by taking out long term lease arrangements and eliminate the high capital commitment of buying or building. Finbar is WA’s largest and most trusted apartment developer and have recently completed Pelago West Apartments in Karratha WA. Furthermore, Stage 2 Pelago East is well under construction and plans for multi-storey residential development in Port Hedland are being fast tracked.
Accommodate your valued employees at Pelago Apartments in Karratha
Located on the main street of Karratha, central to cafés, shopping and nightlife
Secure, lock up parking and state of the art security systems
Low maintenance living with independent strata management in place
Resort style amenities including 25m pool, spa, sauna, fully equipped gymnasium and more
A home away from home, these fully appointed and air-conditioned luxury apartments are suited for middle and upper management tenants
Pelago East is due for completion December 2013
Speak to Finbar today about flexible and attractive corporate lease arrangements in their new developments in Karratha and Port Hedland.
FEATURE ARTIClE»
wa aPPRoveSPlanSFoR 40Mw tidal PoweRStation
The government of Western Australia has just approved plans for a 40MW utilityscale tidal power station in the state. It will be the first such facility in Western Australia and will be located near Derby in West Kimberley.
The project is being developed by Tidal Energy Australia and is expected to generate enough energy to power between 10,000 and 15,000 homes. It will be a double basin system consisting of six 8MW turbines generating 200 gigawatt hours of energy per year and displacing around 27,000 tons of CO2 annually. It will also bring numerous jobs to the area. A contract for the construction of power lines to serve the main population centres in West kimberley has still to be negotiated according to Environment Minister Albert Jacob. The design and costing for the project was completed in 2003 and although the exact cost of the project remains speculative it is likely to be slightly less than the costs for diesel. It is likely that costs will decrease considerably in the future with the rising costs of gas.
The news has been welcomed by the community of Albany, particularly the Albany Chamber of Commerce which stated that the area has long been recognised as a prime location for Australia’s first wave and tidal plant.
By Robin Whitlock
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