IN BRIEF
BHP looks to Brazil
BHP Billiton is targeting Brazilian waters for its next offshore oil venture, as the company's petroleum division continues to grow in influence. Brazil has not auctioned oil blocks since 2008, but will break that trend with a block auction on May 14 and 15, according to information sourced by Bloomberg. The blocks are off Brazil's north-eastern and northern coasts, and BHP will face strong competition from the likes of Exxon Mobil, Hess, BP, Total, Shell and Statoil. Japanese and Chinese oil majors will also bid.
GAS
Purchase go-ahead
China's biggest state-owned oil company, PetroChina, has been given the go-ahead to push ahead with its proposed purchase of a 20 per cent stake in permits held by Karoon Gas and ConocoPhillips in Australia's Browse Basin. Karoon has the right to match PetroChina's bid, but told Conoco yesterday it would not attempt to do so. The permits are expected to become Australia's next big LNG development.
ENERGY
WA camp gets OK
A $120 million camp to house more than 850 fly-in, fly-out workers at the proposed gas hub in Western Australia's Kimberley region has been given a conditional green light by a state government planning panel. Amid some angry scenes from protesters, the Kimberley Joint Development Assessment Panel conditionally approved the camp, which would temporarily house workers while a bigger permanent camp is built nearer James Price Point - if Woodside Petroleum's $40 billion project goes ahead.
Frequently Asked Questions about this Article…
BHP Billiton is targeting Brazilian waters for its next offshore oil venture. The company is preparing to bid in a government auction of oil blocks off Brazil’s north-eastern and northern coasts, marking the country’s first block sale since 2008.
Brazil is holding an oil block auction on May 14 and 15 for areas off its north-eastern and northern coasts. These are the first such auctions since 2008, attracting major international oil companies.
BHP will face strong competition from global oil majors named in the article, including ExxonMobil, Hess, BP, Total, Shell and Statoil, as well as Japanese and Chinese oil companies planning to bid.
PetroChina has been approved to proceed with a proposed purchase of a 20% stake in permits in Australia’s Browse Basin that are currently held by Karoon Gas and ConocoPhillips.
Karoon Gas had a right to match PetroChina’s offer but informed ConocoPhillips it would not attempt to do so. That means PetroChina is free to proceed with the proposed 20% acquisition, a change in permit ownership relevant to the Browse Basin LNG development.
A state planning panel, the Kimberley Joint Development Assessment Panel, conditionally approved a A$120 million temporary camp to house more than 850 fly-in, fly-out workers for the proposed gas hub in Western Australia’s Kimberley region. The approval came amid protests.
The A$120 million camp is intended as temporary accommodation while a larger permanent camp is built nearer James Price Point — but that permanent camp depends on whether Woodside Petroleum’s proposed A$40 billion project goes ahead.
Investors should follow the outcome of Brazil’s May auction for offshore oil blocks, the competitive bids from major oil companies, PetroChina’s progress on the 20% Browse Basin stake, Karoon’s strategic choices, and approvals for infrastructure such as the Kimberley FIFO camp tied to Woodside’s proposed A$40 billion project — all potentially important for oil and LNG exposure.
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