East African gas-impacts for Australian LNG
Simon Tysoe A , Stuart Barrymore A and David Clinch A BA Herbert Smith Freehills.
B Presenter Only
The APPEA Journal 53(2) 432-432 https://doi.org/10.1071/AJ12043
Published: 2013
Abstract
Until recently, East Africa, with its complex geology and seemingly limited prospects, was the poor relation of the hydrocarbon provinces of West Africa. Since 2010, however, a string of successful exploration has resulted in offshore Kenya, Tanzania, and Mozambique, culminating in significant mergers and acquisitions and farming activities. Peter Coleman of Woodside described it as a potential game changer and a significant threat to the Australian LNG market.
This extended abstract provides an overview of the basins and the discoveries, concentrating on the two most promising countries: Mozambique and Tanzania. The deals to date and the proposed LNG developments are also discussed. Also discussed is the petroleum regimes in each of these jurisdictions, the deals, the underlying title systems, the absence of regulation, and the key risks for parties transacting in that sector. An overview of applicable taxation regimes is supplied.
This extended abstract then considers potential development scenarios and the relative advantages and disadvantages that East Africa has compared with Australia and the degree to which East Africa presents a threat to planned Australian projects. It is self-evident that the absence of infrastructure and modern petroleum systems of regulation challenge investment decisions.
Simon Tysoe is a partner of Herbert Smith Freehills, a leading international law firm created from the merger of Australia’s Freehills and the UK-based international law firm Herbert Smith. Based in London, he is a corporate lawyer in the energy and natural resources team who advises clients about oil- and gas-related legal matters covering project development and mergers and acquisitions. He has experience in upstream, downstream, and mid-stream projects in Europe, Asia, South America, and Africa; he has recently been active in East Africa, including advising BG on their entry into Tanzania in 2010. In addition, he has worked extensively on LNG projects in various countries, including export projects in Indonesia, Equatorial Guinea, and Nigeria. He is a graduate of Oxford University. He is married and has three children. |
Stuart Barrymore is from Herbert Smith Perth office. He has a wealth of experience in relation to LNG development worldwide. |
David is the head of HSF’s Greater China energy, mining, and infrastructure practice and has been based with Herbert Smith Freehills in Asia and London for more than 19 years. During his career, he has been based in HSF’s Hong Kong, London, Bangkok, Tokyo, and Singapore offices. He has worked on transactions in Africa, the Middle East, Asia, South America, Australasia, the former Soviet Union, Canada, and the UK and other parts of Europe. He has been consistently rated as a leading lawyer in the energy and natural resources sector and has extensive experience in advising clients (across the world) about oil and gas (including LNG), chemical, power, refining, and other matters. His practice covers acquisitions and disposals (including bid and auction processes), project development, offtake, project finance, joint ventures, and feedstock and supply arrangements. He is qualified as a solicitor in England, Wales, and Hong Kong. |
