It’s not just the US where the early stages of an oil and gas revival can be seen, something similar is happening in Australia, led by the country’s richest person, iron ore billionaire Gina Rinehart.
Armed with a fortune that Forbes estimates at $30 billion, Rinehart is building a new Hancock Prospecting division, snapping up assets to create a major national natural gas producer that trades as Hancock Energy.
Gina Rinehart at the CEO Magazine Executive Of The Year Awards in Sydney, Australia. (Photo by Brendon … [+]
Named after her late father, mining pioneer Lang Hancock, Rinehart’s mining and gas interests include a 50% stake in East Coast-focused Senex Energy, with major Korean steelmaker Posco holding the other half and a rapidly expanding west coast business.
A series of corporate deals over the past two years have seen Rinehart use her position to effectively lead a historic gas producing region, the Perth Basin, which is being revitalized using modern exploration and production technology.
Its first move was to buy Warrego Energy two years ago, which is a half-owner of a major gas discovery called West Eregulla, beating another Australian billionaire, Kerry Stokes, who controls Beach Energy, to the price.
Rinehart is now looking to own the other half of West Erregulla, Strike Energy, with a move expected sooner rather than later with long-term Strike chief executive Stuart Nicholls announcing his resignation last week.
In between acquisitions, Rinehart paid $750 million for Mineral Resources’ financially stretched Perth Basin gas interests.
If Rinehart buys Strike, it will be in a position to dominate a region with a 50-year history of gas production that is beginning to discover reservoirs at depths that were beyond the reach of initial explorers.
Asian Corporate Partners
But in the same way it has teamed up with a major Asian company in Posco for its east coast gas business, the move to the west coast could see it build a relationship with one of Japan’s biggest companies, Mitsui & Co. .
The seeds of a deal with Mitsui can be seen in her existing status as a partner with Stokes on the Waitsia project, which ties in with Rinehart’s growing interests and her close relationship with the chairman of Mitsui’s Australian business, Sam Walsh.
It was Walsh who 20 years ago, when head of Anglo/Australian miner Rio Tinto’s iron ore division, persuaded Rinehart to do a 50/50 deal to pave the way for the development of its first iron ore mine. of iron, Hope Downs.
History may repeat itself because Rinehart and Walsh have deep ties. Rinehart prefers joint ventures and West Erregula’s partners (Beach and Mitsui) have the right to export part of their production to an international market at a higher price.
Gas faucets with piping system at natural gas station. iNdUSTRy
The next steps in Hancock Energy’s evolution as a major Australian oil and gas company are likely to begin with a move to Strike, which appears to be in the early stages of a sale process.
As well as Nicholls’ departure, the board has announced a strategic review aimed at boosting returns for Strike shareholders, who have seen their company’s share price fall from A50 cents a year ago in recent sales to A23c, rated the business at a low level. A$645 million ($400 million).
While a bid for Strike is likely to be Rinehart’s next Australian move, the acquisition of US oil and gas assets could be an international step.
A delegation of Hancock Prospecting executives, including Hancock Energy chief Stuart Johnson, is in the US this week looking for investment opportunities while Rinehart has been attending events related to the inauguration of President Donald Trump.
Non-left, non-woke
Rinehart earlier today told The Australian newspaper that Trump had launched a major “not left, not smart” movement.
“We see the U.S. under President Trump becoming a tremendous investment opportunity enabled by a focus on reducing bureaucracy and red tape and government regulations,” she told the paper.
“President Trump has launched the largest non-left, non-wok movement sweeping the world. Hopefully Australia won’t lose.
“Like many others, we have already invested and expect to invest billions more in the US”
