Well, not good news. Just heard from a colleague of mine in the Brisi office who got fired this morning.
60 people including many staffies, contractors and casuals were fired early this morning from their Eagle Street office in Brisi.
So it's official now that Shell and Petro China have decided to divest Arrow, and cancel the $10 billion project.
Icthys LNG looks to be next up near Darwin. Shit these cancellations continue at this rate, and most of us in projects would look at relocating to Dubai or Abu-Dhabi soon.
Anyway here's the Arrow bad news as usual from the Sydney Telegraph:
Arrow chops staff as $10b LNG project in doubt JAMES MCCULLOUGH ARROW Energy is poised to become the first casualty of the runaway Gladstone LNG boom. It's understood Arrow will not proceed with plans to build a $10 billion fourth LNG train on Curtis Island off Gladstone and will significantly down - size its Australian operation with the likely loss of up to 600 jobs. Arrow is 50 per cent owned by Shell and 50 per cent by PetroChina. It has already been winding back staff ahead of an expected large number of forced redundancies on January 15 or 16. On Friday Arrow let go about 60 full time in -house contractors and cancelled their graduate program, rescinding about 30 new graduate offers, due to start in January. An internal email about cost reductions gives an insight into the lengths the group is now going to try and save money. It said all stationery "will be centralised in Office Services. If you require anything please go to the mailroom counter ". Kitchen cleaning will be cut back and a concierge service dropped. A series of questions put to Arrow on Friday met with the response: "We do not respond to speculation ". Arrow later sent a media release saying that the Gladstone project had received government approval although that is no guarantee it will proceed. Internal sources say Shell has not been keen on the Gladstone project, already holding four other major interests in LNG projects around the country. There was speculation then, with the arrival of newboss Benvan Beurden that the Arrow gas project would be a likely casualty of a tighter spending regime at Royal Dutch /Shell. "We will need to make some hard choices over the next few quarters between the best new investment opportunities from this emerging portfolio ... This is as much about what we choose not to do as what we choose to do," chief financial officer Simon Henry said at Shell's October 3lpresentation of quarterly results.
So this Arrow shut down is in line with major divestment's by Shell. They are hurting for money due to low profits.
If a giant like Shell or BP are finding it tough, what to speak of our small potatoes like Santos, QGC or Origin. These local boys don't even count if it wasn't for the funding and support from big players. If Icthys dies as well than that will only leave the FLNG project as the next big thing, but we already know that it would be extremely tough to land a job on that project fukkin 200 miles off of WA, in an international jurisdiction.
Anyway from smh here's a look at what Shell are doing next, which includes major selling off of stakes with our local puny Woodside:
Man I tell you what, nothing is going on in the market anymore. If you find me a project to go to in mining or oil & gas today, you know more than me!
It's time now Perthite to pack up and start looking West toward the Persian Gulf.
Dubai, Abu Dhabi there are projects always on. If you get a $150k/yr tax free including accomodation and bills paid (everything else covered except food) take it!
$150k/yr in USD means $250k/ yr on the check in AUD. All saving.............
I am really considering moving back to the ME, as here it will take a while to sort out this economic mess.
Arrow chops staff as $10b LNG project in doubt JAMES MCCULLOUGH ARROW Energy is poised to become the first casualty of the runaway Gladstone LNG boom. It's understood Arrow will not proceed with plans to build a $10 billion fourth LNG train on Curtis Island
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
The slump price of NG doesn't justify enormously expensive projects which will run at a loss. And LNG isn't a great storage item, it loses energy in storage. To prevent this the amount of time LNG spends stored before it is consumed must kept to a minimum.
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
Count, you remember my predictions for the LNG boondoggle from 2 years ago?
2 years ago all the ignorant's here (who were not from the industry, and just tradies or enthusiasts) had hardons for what a fantastic LNG superpower Australia will become.
An year ago, I mentioned that these projects are not viable as the world politics and LNG economics have changed.
Now with little CSG gas production to show for, and the prospects of drilling tens of thousands of more wells, or else even the futures of the big three projects seems to be in doubt. Gas prices are at historic lows.
There is no other industry to pick up the upto 30,000 construction people, subby's and contractors who are increasingly being let go from deep within QLD, and Curtis Island area because all three pipelines and the plant come to a screeching halt come June next year. Manufacturing doesn't exist, and mining is dead in the water.
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