From the Advertiser. Is a Beach article but join the dots
NEW Beach Energy managing director Rob Cole is a strong believer in the company’s gas story and will be looking close to home for growth prospects.
Mr Cole started at the Adelaide oil and gas producer last week, with outgoing boss Reg Nelson telling media recently it made sense for Mr Cole to start before his anticipated June 1 start date because the company was looking at a number of M&A and farm-in opportunities.
Mr Cole would not be drawn on whether Beach would be looking to acquire companies or assets in the current depressed oil price environment, but said Beach’s strategy of continually assessing opportunities would be maintained.
“My philosophy is to continue what the company’s been doing which is screening opportunities of any kind, whether it’s a corporate deal or a farm in,’’ Mr Cole said.
The former Woodside Petroleum second-in-charge said Beach’s gas story and the growing demand for gas from the eastern states and the LNG sector was what attracted him to the company.
“I’ve been a player in the LNG industry for the last nine years and LNG plants consume vast amounts of gas,’’ he said. “And not just for a few years but for generations. The east coast obviously has three LNG plants starting up.
“Demand for gas is going to go up and stay up for a long time. Then you have the natural advantages of gas versus other fuels for power generation, community attitudes to coal and other hydrocarbons.
“I’m a big believer in the east coast gas story.’’
Mr Cole said his focus would be “closer to home” rather than looking for international assets.
“I fully embrace what the company’s been doing, it’s been reviewing its international portfolio, I believe we should be focusing closer to home, concentrating on our core where we have a genuine competitive advantage.’’
Mr Cole said it was too early for him to comment on whether he supported Beach’s forays into exploring for gas in the South East of South Australia, where there has been push back from local communities concerned about the effect of gas exploration on agricultural activities.
There is currently a state parliamentary inquiry into fracture stimulation in the South East under way, which Beach has made a submission to and which Mr Cole said the company would continue to engage with.
Mr Cole said he had a consultative, values-driven management style and was “certainly not a volatile or colourful personality’’.
“Despite my background as a lawyer I’ve learned to become decisive, make decision, take risks.’’
Mr Cole, who had been tipped as a possible successor to former Woodside boss Don Voelte, was managing partner of Mallesons’ Perth outpost before joining Woodside.
He said he had no insight into Mr Voelte’s intentions with the 13.79 per cent stake in Beach which Seven Group Holdings picked up in February. Mr Voelte is now chief executive of Seven Group.
Mr Cole said Beach was not immune to the need to cut costs in the current constrained oil price environment but its major costs were on the operational side, rather than internal staff costs.
Beach has protected its operating and corporate costs by putting in oil price floors of $40 per barrel of oil.
Beach is currently waiting on Chevron to make a decision about whether it will invest in a second stage of unconventional gas drilling in the Cooper Basin.
Chevron has until March 31 to make a decision. The decision, across two tenements in South Australia and Queensland, would involve Chevron tipping in up to $US77 million in cash payments plus contributions to exploration.
Mr Nelson will stay on as an adviser to Beach until July 1.
Beach shares were 1c lower at 97c.
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