Oil & Gas - the boom continues down under


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The Australian 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 years, Australia is currently the world’s fourth largest LNG exporter. The sector has a skilled work force, relatively low business costs, the taxation and royalty arrangements are internationally competitive and sovereign risk is low.
Contact Richard.Goldsmith@fco.gov.uk for more information.

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  • EU 4.2 M sq Kms 497 Million people 117 per sq km WA 2.5 2 0.8
  • Like to thank the WA Agent generals office for some of these slide backgrounds and photo’s
  • The Prelude FLNG facility will be 488m long, 74m wide and will weigh 600,000 tonnes when fully ballasted, making it the largest floating structure ever built The Prelude FLNG facility will be built by Samsung Heavy Industries at its Geoje Island ship yard in South Korea, one of the few places in the world with a dry dock big enough to construct a facility of this size
  • Oil & Gas - the boom continues down under

    1. 1. UKTI AOG Day 18/02/2013 1UNCLASSIFIED
    2. 2. Australia Oil +Gas : The Boom Continues Down Under Richard Goldsmith Lead for Energy, Mining and Resources for Australia and Head of Trade for Western Australia and Northern Territory UKTI AOG Day 18/02/2013 2UNCLASSIFIED
    3. 3. Disclaimer• Whereas every effort has been made to ensure that the information given herein is accurate, UK Trade & Investment or its sponsoring Departments, the Departments of Business Innovation & Skills and Foreign & Commonwealth Office, accept no responsibility for any errors, omissions or misleading statements in that information and no warranty is given or responsibility is accepted as to the standing of any firm, company or individual mentioned. 3UNCLASSIFIED
    4. 4. Australia – A brief geographical overview 4 UNCLASSIFIED
    5. 5. “That’s not a BIG country!” This is just ONE State!!! 5UNCLASSIFIED
    7. 7. Why Australia?• You’ll feel at home immediately: – Over 1,000 UK companies and more Brits than in any other country – Very similar business, legal and regulatory culture• Best performing OECD country economically, with good growth prospects• Strong Australian dollar making UK goods and services more affordable• Closely linked to fast growing Asia-Pacific nations• Massive opportunities for UK companies in oil and gas, health, ports, infrastructure, ICT, education, low carbon, financial and business service.* ONS Pink Book 2012 7 UNCLASSIFIED
    8. 8. Why do business in Australia ? Strong economy  Stable economies with good current and future growth prospects Business, legal & cultural similarities  Familiar business, legal & regulatory framework  Common language & customs  Strong IP protection  Many British businesses already there  High regard for UK products “High Quality –Low Cost” Proven in the North Sea etc. Gateway to Asia  Skilled, educated, multi-lingual workforce  Asia still the region of the world with the highest potential growth Quality of Life  5 Australasian cities in world’s top ten most liveable cities* * The Economist, Liveability Ranking, 2010 8 8UNCLASSIFIED
    10. 10. PROJECTS Committed verses Planned 10UNCLASSIFIED
    11. 11. Queensland 11UNCLASSIFIED
    12. 12. 12UNCLASSIFIED
    13. 13. Northern Territory - Bonaparte, Timor Gap, Inpex Browse Ichthys 13UNCLASSIFIED
    14. 14. Darwin as Marine Supply +Service Base 14UNCLASSIFIED
    15. 15. Major WA Resource Projects 15UNCLASSIFIED
    16. 16. Browse Projects 16UNCLASSIFIED
    17. 17. 17UNCLASSIFIED
    19. 19. • Prelude will be located 475 km north-northeast of Broome, and over 200 kmfrom the nearest point on the coast.• Located in 250m-deep water, it is inthe Indian Ocean in the eastern part ofthe Browse Basin.• It will be the first development to useShell’s Floating LNG (FLNG)Technology.• The FLNG facility is being constructedin Geoje, Korea and will be towed to thelocation.• Once operating, the Prelude Project isexpected to produce at least 3.6milliontonnes per annum of LNG, 1.3 mtpa ofCondensate and 0.4 of LPG for about25 years.• Final investment decision taken byShell Board in May 2011 19UNCLASSIFIED
    20. 20. ECONOMIC CONTRIBUTION OFPRELUDE FLNG PROJECT The Project will bring a number of economic benefits for Australia Adds more than A$45b to Australia’s GDP Creates around 1,000 jobs, including 350 direct jobs Contribute total tax revenues of more than A$12b Spend A$12b on Australian goods and services Opportunities for Australian businesses Improve Australia’s balance of trade by more than $A18b through export of LNG, LPG and condensate Shell in Perth will grow to around 1,000 employees from 250 employees currently The Prelude FLNG Project will be world first technology in Australian waters 20UNCLASSIFIED
    21. 21. PROJECTS to be targeted $A Bn $A Bn 21UNCLASSIFIED
    22. 22. 22UNCLASSIFIED
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    27. 27. Knowledge Gap? 27UNCLASSIFIED
    28. 28. UKTI Oil and Gas Programmes UKTI Programmes for Australia FY 2013-2014 Setting up in Australia NAG – Northern Australia Gas New Programme starts April 2013 and runs to March 2014 includes Offshore Europe 2013, AGT 2013, AOG 2014. 28UNCLASSIFIED
    29. 29. Setting up in Australia £1,170 ex vat. FY2012-2013 • What do I need to know to start up in this market? • What equity can I hold? Must I have partners? • How do I get profits back to UK? What’s the tax? • What Company structure? What Reporting and Accounting Requirements? • Visas explained! Industrial Relations? Unions! OSH? • Package includes - 1 hour with UK based Accounting Firm » - 1 hour with UK based Lawyers » - 1 hour with an Oil + Gas knowledgeable bank. 29UNCLASSIFIED
    30. 30. Setting up in Australia cont. -Customised Visit Programmes • We recommend you use your existing contacts within the major Operators and EPC’s to assist you with gaining appointments in Australia. • Why? Because they will include a little email that states the current work, contracts etc. you’ve done with them and it will assist building creditability towards 1. Authorised/approved Supplier certification and 2. Help you win your first contracts. • UKTI can do detailed visit programmes but these are time cost expensive because of all the calls that have to be made to create tight, programmes for your limited time in Perth, Darwin or Brisbane. These are an additional cost to the base package. 30UNCLASSIFIED
    31. 31. NAG - Northern Australia Gas £2,340ex vat. FY2012-2013 • NAG is an Australian Project in the FCO –UKTI High Value Opportunities Program • Information on the up and coming LNG projects which UKTI believe opportunities exist for SME’s to access work with major EPC/M’s in the next 12-18 months. • Detailed information on each project. • News update emails on announcements etc. • Offshore Europe –Australia presentation session • AGT 2013 -Australasian Gas Technology –Downstream and pipelines • AOG 2014 –Australasian Oil and Gas Expo + Conference –Upstream • UKTI AOG Day- Mon 17 Feb 14 detailed day of presentations and info. 31UNCLASSIFIED
    32. 32. How can UKTI Australia help British companies?• Find local contacts to help your business grow• Help you attend trade fairs and missions• Carry out in-depth research on the market to your specifications• Product launches and PR and marketing support• Whatever you need to succeed in FreeDigitalPhotos.net the market! 32 UNCLASSIFIED
    33. 33. What next?• Ask questions at the end of this or follow the conversation on LinkedIn• Keep in touch with the latest Australian business opportunities• Attend our industry specific webinars• Follow us on twitter @uktiaustralia• Get in touch with me Richard.Goldsmith@fco.gov.uk Linda.Miles@fco.gov.uk FreeDigitalPhotos.net 33 UNCLASSIFIED
    34. 34. What can UKTI Australia & NZ do for you?• Local knowledge: Tailored, experienced, impartial advice to maximise your chances of succeeding in Australia• Product launch: In one of our boardrooms, available in most capitals• Introduction service: To prospective business partners, distributors, suppliers and Australian Govt bodies• Promotion: PR to local media, UKTI e-newsletters, emarketing and social media campaigns• Test the Market: Reduce the cost, risk and time of establishing your business in Australia by working in one of our business centres• The Market reports – Close the your Knowledge Gap, provide time relevant info. For your Business case. 34 UNCLASSIFIED
    35. 35. My contact detailsRichard GoldsmithLead Mgr. Energy, Mining and Resources for AustraliaHead of Trade W.A. , N.T.Email – richard.goldsmith@fco.gov.ukWebsite//ukinaustralia.fco.gov.uk/business 35 UNCLASSIFIED
    36. 36. Sources WA Government Qld. Government NT. Government Australian Federal Government Reports Newspaper Articles Co. Reports and Media announcements UKTI Australia sourced and commissioned reports Subscription services supplied information 36UNCLASSIFIED