“Asia Pacific & Australia Oil & Gas: Negotiating the Future” - AIPN

Grand River Ballroom, Sheraton Perth Hotel2:00pm – 3:30pm LNG for all: the Development of a World MarketSession Chair: Peter Glass, Vice-President – Marketing, Greater Gorgon Development, Chevron Corporation (Australia)The LNG market has gone through unprecedented change in the last 10 years. In the mid 90s, LNG was sold in threedistinct regions – North Asia, Europe and the USA. Asia was by far the largest and projects were usually located withinor close to the region they served. Critical events that have changed the LNG market since then have been:- the 1998 Asian financial crisis- the tightening of gas supplies in the US and Europe leading to higher gas prices in those markets- the increased global reach of new LNG projectsThe dampening of demand in Asia post the 1998 financial crisis allowed Chinese, Korean, Indian and Taiwanese buyers toprocure LNG on extremely favorable terms via competitive tender. The low prices achieved in these tenders resulted in aslowing of project development in the Asia region and encouraged Middle Eastern suppliers in particular to look Westrather than East for their growth markets. Coincidentally in the early 2000s prices in the US and Europe rose in responseto a tightening of pipeline gas supply. As netback prices from distant markets began to approach those from closer ones,LNG projects which had previously supplied only one region found it economic to supply two or even three regions.This is now allowing suppliers to arbitrage cargos in the short term and target a larger range of customers for long termcontracts. For buyers it means that they can no longer assume that they are competing for LNG only within their regionhowever it also give them access to a greater range of possible suppliers. This globalization of the LNG market isexpected to continue.Speakers:• Peter Cleary, President, North West Shelf Australia LNG (Australia)• Stuart Traver, Senior Manager – Downstream, Gaffney, Cline & Associates (Singapore)Foyer 3, Sheraton Perth Hotel3:30pm – 4:00pmCoffee Break – Sponsored by Fulbright & Jaworski L.L.P.Grand River Ballroom, Sheraton Perth Hotel4:00pm – 5:15pm Cross Border Development, Boundary Disputes and UnitizationSession Chair: Andrew B. Derman, Partner and International Energy Group Leader, Thomson & Knight LLP (USA)Cross border developments bring with them additional considerations and challenges. When faced with these, thesolutions can range from government to government agreements, regulatory policy and legislation to commercialagreements such as unitization agreements. There is also often the spectre of a boundary dispute in the mix. Thissession considers the challenges and solutions involved in cross border developments and boundary disputes, and includean introduction to the AIPN Model Form International Unitization Agreement.The presentation will address, among other issues: what is and is not covered by the Model Form, government approvalissues, how are equities to be determined and redetermined, how are royalties, taxes and other burdens to be satisfied,how are liabilities allocated, confidentiality and disclosure of data, the interplay with existing tract JOAs, work programand budgets, use of existing and non-unit facilities.Speakers:• Andrew B. Derman, Partner and International Energy Group Leader, Thomson & Knight LLP (USA)• Prof. Terence Daintith, Centre for Mining, Energy and Natural Resources Law, University of Western AustraliaFraser’s Restaurant6:30pm – 11:00pm Gala Dinner at Fraser’s Restaurant – Sponsored by ConocoPhillipsDress code suggested: Dinner Suit/Cocktail Attire(Buses leave the hotel at 6:15pm – boarding at 6:05pm - and depart Fraser’s at 10:30pm and 11:00pm)Entertainment by WA Youth Symphony OrchestraPresentation of AIPN’s 25 th Anniversary by the 2006 AIPN President, Rick Goenner and charitable contributionannouncementOctober 11, 2006 4