Going for gas

Central Petroleum shareholders are considering a proposal by Macquarie Bank for a buy-out valued at $86 million for the on-shore gas company. The deal would unlock massive conventional gas reserves in Central Australia, generating immense royalties. 

Shareholders have until June to make their decision.

The three key fields are Ooraminna, Palm Valley Deep and Dukas. Central Petroleum has a 30% stake in Dukas, which is said to be a multi-trillion cubic feet gas field. The deal now subject to shareholder approval includes a contingent value right for some 600 billion cubic feet of gas.

Macquarie is a major player in the US gas futures market, and already owns a 50% stake in the Mereenie Basin, which is operated by Central Petroleum.

In recent months the market has not favoured oil and gas investments because of a drop in oil and gas prices. But prices are rising.

Prepared by Bob Woodward & Associates: offering business consultancy, accounting, payroll administration and ancillary services in Darwin, the capital of Australia’s Northern Territory.

http://www.woodwards.co/

More developments for Darwin

The Australian economy has gone through several phases over the past year, and to a large extent it is still in the Northern Territory where things are all happening. Let’s take a snapshot look at Darwin, where several exciting developments have taken place over the past couple of years, and the march of progress continues.

For starters, the INPEX gas project site in Darwin remains a key development, and is one of Japan’s largest ever overseas investments. INPEX is Japan's biggest oil and gas exploration and production company. Five Dutch dredges, the largest in the world, dredged the harbour up for this development – and an extension of the Land Lease Agreements for the INPEX project points to even further expansion.

Meanwhile, new investments from China are leading to massively improved port facilities in Darwin. A A$25 million development is geared to meet future increases in cargo volumes in the areas of dry bulk exports, liquid bulk imports, live cattle and container and general cargo. The Chinese company involved in Darwin's Port has announced plans for a huge expansion of its operations, including a one-kilometre extension of its quay line. It also means an expansion of cruise ships facilities at Fort Hill Wharf, which in turn will give a boost to the NT’s important tourism industry: more than 80 cruise ship arrivals are scheduled in Darwin through 2017.

Another tourism boost came with the announcement earlier this year of a new six-star hotel to be built at the Darwin Waterfront, which will be operated by Westin Hotels & Resorts, the largest upscale hotel brand of the internationally recognised Starwood Hotels and Resorts group. Construction is expected to commence in the second half of 2017.

Darwin’s growth has meant big business for the local construction industry: both house and land and prices, as well as rents, increased with a continuing demand for somewhere to call home. Major roadworks have been carried out around the city also; and the NT’s newest hospital, the Palmerston Regional Hospital, is set to provide state of the art healthcare to Territorians.

All in all, it seems that the Northern Territory’s economic vitality is assured for the long-term future

Prepared by Bob Woodward & Associates: offering business consultancy, accounting, payroll administration and ancillary services in Darwin, the capital of Australia’s Northern Territory.

http://www.woodwards.co/

Boom continues in Darwin

When you read the newspapers these days you might believe that Western Australia is where the boom in Australia’s economy is happening, probably because it has a larger population and a bigger GDP. However, it is the Northern Territory where it is all happening.

The INPEX gas project site in Darwin is the largest construction site in the country at the moment -- and it is currently Japan’s largest ever overseas investment.Five Dutch dredges, the largest in the world, are dredging the harbour up to the plant site which is located near Palmerston, further up than Darwin’s new port.

This means that both house and land and  prices, as well as rents, are soaring as the demand for somewhere to call home increases. It means big business for the local construction industry. And values of everything are rising in Darwin.

The current boom will be highlighted at the 4th Annual Northern Territory Major Projects Conference 2013 which will take place at the , Darwin Convention Centre on October 29-30 this year.

The conference continues to be the largest major projects and infrastructure conference in the state, attracting more than 300 delegates annually.

With the many major projects in the Northern Territory under way it is an exciting period of development and points to the economic vitality that lies ahead for the Northern Territory.

The two-day conference will be examining in detail the significant investments being made in roads, ports, rail, housing, land, transport, education, water and much more, providing an excellent opportunity to discuss the topics and issues presented. 

Prepared by Bob Woodward & Associates: offering you business consultancy, accounting, payroll administration and ancillary services in Darwin, the capital of Australia’s Northern Territory.
http://www.woodwards.co/

Northern Territory's Indigenous spending report

The figures on government spending on indigenous people in the Northern Territory have just been released.

Standing at AUD 4.7 billion for the period 2010-2011, it represented 54 per cent of total government expenditure.

The 2012 indigenous expenditure report's stated aim is to provide cost of services Aboriginal and Torres Strait Islander people by the federal, state and territory governments. This is the second year it has been released.

Federal Government spending accounted for AUD 2.2 billion of the spending or 47 per cent of the AUD 4.7 billion.

The estimated spending per head of population was AUD 67,761 for indigenous people compared to AUD 24,822 for non-indigenous people.

Prepared by Bob Woodward & Associates: offering you business consultancy, accounting, payroll administration and ancillary services in Darwin, the capital of Australia’s Northern Territory.
http://www.woodwards.co/

Some tips when buying a franchise

Franchises are a popular way of starting a new business, but if you are thinking of buying one don't be fooled about potential earnings, the Australian Competition and Consumer Commission has warned.

The ACCC is currently looking into a number of  misleading claims concerning “guaranteed” earnings made by franchisors in the cleaning and home services industry

The watchdog says it has received a number of complaints from franchisees who say they have been promised a minimum income, but, in reality, have generated very little or no income from their franchise.

The ACCC is particularly concerned by franchisors who appear to target people from non-English speaking backgrounds -- people who may not fully understand the agreements they are entering into.

Franchisors must have a reasonable basis for making all income representations to potential franchisees. Those who give misleading information concerning the potential income of a franchise can be subject to litigation and court imposed penalties of up to $1.1 million per contravention.

Those fines are little compensation to those who have bought into a franchise that has turned sour. So we would like to pass on one or two tips from the ACCC when it comes to investing in a franchise.

For a start, beware of promises that you will earn a guaranteed income, as well as ‘get rich quick’ schemes that claim you can make large amounts of money with little effort.

If the franchisor makes verbal claims, ask for confirmation in writing.

Make it a point of speaking to existing and past franchisees of the business you are considering. Their contact details should be in the disclosure document that the franchisor is required to give you before you enter into your agreement.

Remember that you do have ‘cooling off’ rights. An agreement can be terminated within seven days of entering into it or making any payment under it, whichever occurs earlier.

Always get advice from a lawyer and accountant before entering into a franchising agreement or handing over any money.

Prepared by Bob Woodward & Associates: offering you business consultancy, accounting, payroll administration and ancillary services in Darwin, the capital of Australia’s Northern Territory.
http://www.woodwards.co/

More business opportunities from Japan

Officials from the Northern Territory government led by the Chief Minister, along with the Chamber of Commerce and the Manufacturer’s Council have just visited Japan for important discussions concerning contracts to Territory businesses from the $34 billion Ichthys LNG Project. 

The delegation met with Japanese conterparts to discuss in more detail how contracts from the massive $34 billion project will flow to Territory businesses.

The first contract awarded by JKC went to locally based business Macmahon Contractors Pty Ltd in a 50:50 joint venture with John Holland. The milestone $340 million contract is the single largest contract awarded in the Territory’s history and will create 375 jobs.

As well as being the gateway into Asia, Darwin is fast becoming the oil and gas capital of Australia.

The Territory Government will continue to work with JKC to provide new opportunities for Territory businesses to grow and capitalise on the massive business opportunities brought about by the Ichthys project.

The Local Industry Participation Plan agreed in 2009 means that, as a preference, local goods and services will be used. This means where a service or a product can be sourced competitively from a Territory business, it will be.

Workshops have been held for more than 900 business owners and operators to learn how they can be best placed to bid for and benefit from work on major projects like Ichthys. More workshops are being planned for this year.

Meanwhile, the Territory is set to host the Japan-Australia Joint Business Conference for the first time in 2014, bringing the biggest investors from across Japan and Australia to Darwin.

The conference is the largest of its kind and attracts some of Japan and Australia’s biggest mining and business executives.

Prepared by Bob Woodward & Associates: offering you business consultancy, accounting, payroll administration and ancillary services in Darwin, the capital of Australia’s Northern Territory. http://www.woodwards.co/

New massive national park for the Northern Territory

A huge tract of land and water in the Northern Territory has been converted into one of Australia's largest national parks.

The Northern Territory government has declared more than 10,000 square kilometres as the Limmen National Park, including an 880 square kilometre precinct known as Limmen Bight Marine Park.

Limmen National Park is located approximately 475 kilometres southeast of Katherine and 182 kilometres northwest of Borroloola. The new park includes a long stretch of coastline and Maria Island. It stretches from the Roper River south past the Cox River and east to the Gulf of Carpentaria

The new park is about seven times the size of the Territory’s Litchfield National Park and half the size of Kakadu. It includes beaches, forests, rock art and unusual geological formations.

It seems the Marra people, traditional owners of land, have had their calls to protect the environmentally and culturally sensitive Maria Island answered with the Limmen National Park annoucement.

Last year a delegation of Marra elders gave the Northern Territory parliament a petition calling for Western Desert Resources not to pipe slurry to the island for processing. The island will be included in the new national park and surrounded by the marine park.

Mining is allowed in Territory national parks, but the NT government has said that no mining holes will be dug in Limmen without having to get the highest approval – and there would be a very high environmental bar.

Limmen National Park will protect turtle, dugong and dolphin habitats and large sea grass beds. The coast will be opened up for permit-free recreational fishing.

The region is no longer the Northern Territory's best-kept secret.

Prepared by Bob Woodward & Associates: offering you business consultancy, accounting, payroll administration and ancillary services in Darwin, the capital of Australia’s Northern Territory.
http://www.woodwards.co/