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.

1. UKTI AOG Day 18/02/2013 1
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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 2
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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.
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4. Australia – A brief geographical overview
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5. “That’s not a BIG country!” This is just ONE State!!!
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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
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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 8
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10. PROJECTS Committed verses Planned
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11. Queensland
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13. Northern Territory - Bonaparte, Timor Gap, Inpex Browse Ichthys
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14. Darwin as Marine Supply +Service Base
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15. Major WA Resource Projects
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16. Browse Projects
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18. SHELL FLNG: INTEGRATING PROVEN
TECHNOLOGIES
SUBSEA QUARTERS
INFRASTRUCTURE
PRODUCTION POWER GENERATION/
FACILITIES WATER INTAKE
MOORING/
GAS TREATMENT OFFLOADING
FRACTIONATION/ LIQUEFACTION STORAGE
COMPRESSION
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19. • Prelude will be located 475 km north-
northeast of Broome, and over 200 km
from the nearest point on the coast.
• Located in 250m-deep water, it is in
the Indian Ocean in the eastern part of
the Browse Basin.
• It will be the first development to use
Shell’s Floating LNG (FLNG)
Technology.
• The FLNG facility is being constructed
in Geoje, Korea and will be towed to the
location.
• Once operating, the Prelude Project is
expected to produce at least 3.6million
tonnes per annum of LNG, 1.3 mtpa of
Condensate and 0.4 of LPG for about
25 years.
• Final investment decision taken by
Shell Board in May 2011
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20. ECONOMIC CONTRIBUTION OF
PRELUDE 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
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21. PROJECTS to be targeted $A Bn $A Bn
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26. 26
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27. Knowledge Gap?
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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.
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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.
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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.
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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.
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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!
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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
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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.
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35. My contact details
Richard Goldsmith
Lead Mgr. Energy, Mining and Resources for Australia
Head of Trade W.A. , N.T.
Email – richard.goldsmith@fco.gov.uk
Website
//ukinaustralia.fco.gov.uk/business
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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
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