The early stages of an oil and gas recovery can not only be seen in the United States, but something similar is happening in Australia, led by the country's richest man, iron ore billionaire Gina Rinehart.
Reinhart, who has a fortune estimated at $30 billion by Forbes, is building a new division for her Hancock Exploration Company, snapping up assets to create a nationally significant natural gas producer called Hancock Energy .
Gina Rinehart at CEO Magazine's Executive of the Year Awards in Sydney, Australia. (Photo by Brendan … [+]
Named for her later father, mining pioneer Lang Hancock, Rinehart's mining and gas operations include a 50% stake in East Coast-focused Senex Energy, with the other half owned by major Korean steelmaker Posco, and a rapidly expanding West Coast operation .
Over the past two years, Rinehart has leveraged his position through a series of corporate deals to effectively lead the Perth Basin, a historic gas-producing region that is undergoing a renaissance using modern exploration and production technology.
One of her first moves was to buy Warrego Energy, half owner of a major gas discovery called West Erregulla, two years ago, beating out another Australian billionaire, Kerry Stokes, who controls Beach Energy.
Reinhardt is currently searching for the owner of West Eregula's other half, Strike Energy, a move expected sooner rather than later as longtime Strike CEO Stuart Nicholls announced his resignation last week. Late.
Between the two acquisitions, Rinehart paid $750 million for the financially strapped Mineral Resources' Perth Basin gas interests.
If Reinhardt acquires Strike, she will be able to dominate a region with a 50-year history of natural gas production that is beginning to reveal reservoirs beyond the depths of the original explorers.
Asia Corporate Partners
But again, she's partnered with a major Asian company, Posco, on its East Coast gas business, and a move to the West Coast could lead to a relationship with Mitsui & Co., one of Japan's largest companies.
The seeds for a deal with Mitsui can be seen in its existing partnership with Stokes on the Waitsia project, the project's growing interest in Rinehart and her relationship with Sam Waugh, chairman of Mitsui's Australian operations. Sam Walsh has a close relationship.
Twenty years ago, Walsh, then head of the iron ore division of British/Australian miner Rio Tinto, persuaded Rinehart to strike a 50/50 deal that would clear the way for the development of her first iron ore mine, Hope Downs. .
History may repeat itself, as Reinhardt and Walsh have a deep connection. Reinhardt preferred a joint venture in which West Erregulla's partners (Beach and Mitsui) would have the right to export some of their production to higher-priced international markets.
Natural gas stations are equipped with gas taps for the piping system. industry
The next step for Hancock Energy, a major Australian oil and gas company, could begin with an acquisition of Strike, which appears to be in the early stages of a sale process.
In addition to Nicholls' departure, the board also announced a strategic review aimed at improving returns for Strike shareholders, who have watched the company's share price fall from A50 cents a year ago to a last sale price of A23c, valuing the company at a lower level.
While acquiring Strike is likely to be Reinhardt's next move in Australia, acquiring US oil and gas assets is likely to be an international move.
A delegation of Hancock Exploration executives, including Hancock Energy principal Stuart Johnson, is in the U.S. this week looking for investment opportunities, and Reinhardt has been attending events related to President Donald Trump's inauguration. Activity.
Don't wake up if you don't wake up
Reinhart told The Australian earlier today that Trump had launched a great “non-leftist, non-woke” movement.
“We see that under President Trump's leadership, by focusing on reducing bureaucracy, government red tape and regulation, the United States will become an excellent investment opportunity,” she told the newspaper.
“President Trump has launched the greatest non-leftist, non-civilian movement sweeping the world. I hope Australia will not miss it either.
“Like many other companies, we have invested and are waiting to invest billions more in the United States”
