Shell boss backs away from talk that csg rivals in QLD may merge.
This in The Australian today.
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SHELL Australia's new chairwoman, Ann Pickard, has backed away from her predecessor Russell Caplan's strong support for mergers between rival proponents in Queensland's multi-billion-dollar coal-seam gas sector.
Ms Pickard, Shell Australia's new chairwoman, also said Shell had no plans to buy Woodside Petroleum, in which it has a 34 per cent stake, amid reports that the Dutch group had considered a joint bid with BHP Billiton.
"We are not getting ready to buy it again," she said, in reference to Shell's failed takeover bid for the Perth-based oil and gas company in 2001.
The Australian revealed last week that Shell and BHP had seriously examined a joint bid, advised by investment bank UBS and law firm Gilbert + Tobin.
Ms Pickard said yesterday she preferred co-operation in Queensland on activities such as river crossings and dredging work, rather than consolidation among the companies aiming to develop a liquefied natural gas export sector in the state.
She had no immediate motive to merge because "I've got my LNG sold".
"Consolidation is less needed and it may or may not happen," Ms Pickard said after addressing an American Chamber of Commerce breakfast in her new home town of Perth.
"I think my predecessor, Russell Caplan, was very clear that consolidation should occur. But at this point in time I think what will drive consolidation is probably more the market than the actual activities."
Shell and Queensland joint venture partner PetroChina were recently in talks with Santos to merge two competing Gladstone CSG-to-LNG projects, sparking speculation the long-awaited consolidation of the four $10 billion-plus projects planned at the port town was imminent.
But talk of a tie-up has cooled.
The Shell boss's comments come less than two weeks after Santos chief David Knox said any consolidation would have to come after a final investment decision on his project was made some time towards the end of this year.
Ms Pickard arrived in Perth in March to become the head of Shell's Australian upstream business at a time when the group is becoming one of the most prominent players in Australia's oil and gas industry.
Shell has stakes in Chevron's $43bn Gorgon LNG project and the Woodside-operated Browse, Sunrise and North West Shelf Venture gas developments. It is aiming to make a final investment decision on its planned Prelude floating LNG facility early next year.
Shell is also developing a project in Queensland with PetroChina, while rival projects are being built by Santos, Malaysia's Petronas, Origin Energy and ConocoPhillips.
Ms Pickard said she was confident about the outlook for the global LNG market.
"It's a really great market right now," she said.
"We have lots of partners and reliable supply."
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