Oil & Gas Opportunities in Australia

An Expert's View about Oil in Australia

Posted on: 22 Sep 2010

Australia is well placed to play a greater global and regional role in the current cycle, which provides opportunities for existing players and new players entering the industry.

Sector briefing Oil & Gas Opportunities in Australia Why Australia? The upstream oil and gas industry is expected to grow at two to three times the rate of the economy for at least the next 15 to 20 years. Services to the oil and gas industry are expected to grow even faster in the wake of the new wave of outsourcing by energy companies. Australia, and particularly Western Australia, is well placed to play a greater global and regional role in the current cycle. A new era heralds changes that provide opportunities for existing players and new players entering the industry. Many of the mega trends underpinning the current cycle are in Western Australia. The major technology change at the exploration and extraction end of the chain is the move to deep water and ?A new era heralds changes growth in associated subsea technologies. Most of the current and proposed mega- that provide opportunities projects off WA and the Northern Territory for existing players and new require these technologies. players entering the industry.? Find general information on the Australian market conditions on UKTI?s website. The Doing Business Guide for Australia gives an overview of Australia?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Oil & Gas opportunities in Australia Opportunities Major Commenced or Committed Projects: The demand by energy companies for a more ? Pyrenees oil development in the integrated and seamless product offering Exmouth sub-basin (BHP Billiton) across the full asset lifecycle from engineering ? The North West Shelf Venture through to maintenance modifications and (Woodside Energy). operations potentially provides the greatest ? Greater Gorgon Development (Chevron) opportunities for UK companies to partner with ? Darwin LNG plant (ConocoPhillips) Australian companies. ? Pluto LNG Project (Woodside) ? Devil Creek Development Project The growth of the integrated service model (Apache) potentially offers additional opportunities for ? Otway Gas Project (Woodside) niche players in areas such as education and ? Basker-Manta Oil Project (Anzon) training, health and safety and environmental ? Casino Gas Project (Santos) services. A number of international service ? Turrum Oil and Gas Field (Exxon Mobil) providers are either acquiring or developing this expertise in-house or forming joint Projects Under Consideration: ventures or alliances with specialist providers of high value technical services such as ? Ichthys LNG Project (Inpex). In FEED environmental and training services. stage. ? Macedon Gas Field (BHP Billiton). A new era in the development of natural gas Construction expected to start end reserves is about to emerge in Western 2010. Australia. In 2009 the A$43 billion Gorgon LNG ? Pilbara-Wheatstone LNG Development Development was granted State and Federal (Chevron). FID planned mid 2011. Government approval. This LNG project has ? Kimberley - Browse LNG Development provided a record boost in the value of (Woodside) Development options for the minerals and energy projects in Australia. The Torosa, Brecknock and Calliance fields. value of those projects was $112.5 billion as of Final Investment Decision planned end October 2009, an increase of 40 per cent since 2011. April of that year. In the wake of a new wave of outsourcing by There are 74 projects under construction or operators, services to the oil and gas industry which have had funding committed - 38 are expected to grow even faster. Two major Energy, 31 Minerals and five mineral growth themes are apparent: processing projects. ? The provision of 'life of asset services' from Western Australia is the nation's primary engineering through to maintenance; and petroleum producer, accounting for 73 per cent ? Deep-water technology products and of natural gas and 64 per cent of crude oil and services. condensate production. The State's petroleum industry is the second most valuable resource For engineering services there are significant sector after iron ore. The WA Department of opportunities at the front end of the asset Mines and Petroleum estimates that by 2015, development cycle for LNG facilities. projected expenditure for major gas-related The subsea sector is a major growth segment projects in Western Australia will exceed A$148 in which global expenditure is forecast to billion. increase from US$61 billion over the five years to 2010, to US$85 billion for the five years The Bass Strait, between Victoria and 2010-2015. Tasmania, has the most mature pipeline system within. The region has been a critical Western Australia has become an important building block underpinning the economic equipment and services provider for the oil and growth of the nation producing almost two- gas sector across Australia and into South East thirds of Australia's cumulative oil production Asia and is supported by a substantial and to date and 30 per cent of Australia's gas growing research and training industry. production. There is significant oil supply and approximately seven trillion cubic feet of gas reserves remaining in the basin. UK Trade & Investment Sector briefing: Oil & Gas opportunities in Australia A number of major international companies If you have any questions on the opportunities have relocated their regional operations and above, contact the UKTI contacts named in this administrative bases to Perth. They have report. Business opportunities aimed joined local firms in providing a comprehensive specifically at UK companies are added daily to supply and service capacity and are major UKTI?s website. These leads are sourced by our contributors to the State?s economy. staff overseas in British Embassies, High Commissions and Consulates, across all sectors Western Australian based firms have and in over 100 markets. participated in the development of the State?s multi billion dollar LNG industry over the past You can be alerted to business opportunities on two decades. As a result, they have had to a regular basis by registering on the UKTI meet and exceed the exacting engineering and website. Find out more on UKTI?s business quality assurance standards required for opportunities service on the UKTI website offshore and onshore construction, repairs and maintenance. The local supply and service sector also provides exploration and information analysis services, advanced software development, skilled maritime and drilling crews, supply vessels and sub-sea services. Business costs are lower compared with neighbouring countries. Taxation and royalty arrangements in place are internationally competitive. The policy and legal framework for oil and gas development is attractive and conducive to companies of all sizes. Sovereign risk is low. Regulatory requirements are transparent, predictable and practical, covering all stages of operations. UK Trade & Investment Sector briefing: Oil & Gas opportunities in Australia Major events and activities UKTI contacts Bruce Dann APIA (The Australian Pipeline Industry Trade Development Manager Association) Exhibition 2010 British Consulate Perth Website: www.apia.net.au Tel: + 61 8 9224 4702 Dates: 11 ? 14 September 2010 Email: Bruce.Dann@fco.gov.uk Venue: Darwin Convention Centre Website: www.ukti.gov.uk SEAAOC (South East Asia Australia Linda Miles Offshore Conference) 2010 Trade Development Officer Website: www.seaaoc.com British Consulate Perth Dates: 22 ? 24 September 2010 Tel: + 61 8 9224 4711 Venue: Darwin Convention Centre Email: Linda.Miles@fco.gov.uk Website: www.ukti.gov.uk Australasian Oil & Gas (AOG) 2011 Website: www.aogexpo.com.au Dates: 23 ? 25 February 2011 Venue: Perth Convention Exhibition Centre APPEA 2011 Website: www.appea.com.au Dates: 10-13 April, Perth Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Oil & Gas opportunities in Australia Next steps - How UKTI can help This work is available via our Overseas Market British companies wishing to develop their Introduction Service (OMIS) a chargeable business in the Australian market are advised service which assists British-based companies to undertake as much market research and wishing to enter or expand their business in planning as possible in the UK. UKTI?s team in overseas markets. Australia, with its wide local knowledge and experience, can provide a range of services to To find out more about commissioning this British-based companies wishing to grow their work, or accessing other UKTI services and business in global markets. specialist advice, please visit the UKTI website to find contact details for your local UKTI This can include: office. ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Chinese market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Chinese market Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Oil & Gas opportunities in Australia
Posted: 22 September 2010

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