Energy Talking Points 08-09-2015

Date: Tuesday, September 8th, 2015

Australia’s Woodside makes $8.1 billion bid for PNG-focused Oil Search (English)

Source: Agence France Press, 08 September 2015

Australian energy giant Woodside Petroleum has recently made an estimated AUD $11.6 billion bid for Oil Search, in a move to tap into the Papua New Guinea market. Woodside last month reported a 39% drop in net profit for the first half year, due to falling commodity prices; this latest move is aimed at capitalising on an expected recovery in the oil price.

M&A in Australian mining industry is shrinking (Chinese)

Source: in-en.com, 04 September 2015

According to a recent report released by Ernst & Young, the Australian mining industry is still facing a host of issues around M&A and a lack of overall financing. In the second quarter of 2015, there have only been 14 new deals worth approximately USD $8.7 billion for BHP and USD $81 million spread over a number of firms.

Glencore, Bloomfield buy Vale coal mine in Australia (English)

Source: Reuters, 27 August 2015

Global mining and trading firm Glencore Plc and Australia’s Bloomfield Group agreed to acquire Vale’s Integra coal mine in Australia. The mine produces both metallurgical coal used in steelmaking and thermal, or “steam” coal, used to generate electricity. Under the deal Glencore will acquire Integra’s underground operations while Bloomfield will get the open cut mine and the wash plant and rail loop facilities. Vale stock was up 2.21% on the news.

Russia and China continue to strengthen energy ties (English)

Source: RT, 3rd September 2015

During the recent visit of President Putin to China the two countries have further expanded cooperation in oil, gas and other areas through a series of strategic memorandums signed between a number of large state and private owned enterprises.

 

This brief summarises a range of publicly available news articles in both Chinese and English and AustCham takes no responsibility for the accuracy of the information in these articles. In addition, the views and opinions reflected in these articles are not necessarily representative of AustCham’s stance.

AustCham Beijing’s Financial Services Working Group is chaired by Zhongmin Zha (Westpac Banking Corporation). For more details on how to get involved in the AustCham Beijing Financial Services Working Group, please contact Andrew Britz.

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