As growing demand puts increasing pressure on existing oil and gas Many underestimate the cash generation that will come from Liquefied Natural Gas (LNG) projects once they come on stream. They are big employers, particularly in remote locations, huge users of existing and future infrastructure and big sources of export dollars.
This is resulting in a range of challenges:
- Australian cost pressures are impacting our productivity agenda and limiting international investment in future big LNG projects.
- Asian demand for our natural resources is fuelling higher prices and investment in projects they see as critical to securing their supply. However, large LNG projects will still need to be brought in on time and on budget.
- Managing complex regulation and responding to changing government policy, such as approvals, Petroleum Resource Rent Tax (PRRT). The sector must also navigate the shortage of skilled workers and contractors, and deal with financial market volatility and readiness-to-operate in a post-commissioning environment.
- Achieving sustainable growth through technology and innovation related to productivity and efficiency.
- Managing higher funding and input costs, which will be an absolute necessity as capital markets and human resources costs change.
KPMG’s Global Oil & Gas Group works with companies across the project lifecycle (upstream and downstream) from explorers, developers, producers, services companies and public sector bodies charged with regulating and advocacy within the sector.
The team delivers services covering:
- traditional audit and tax
- a range of advisory offerings including transaction support, debt advisory, management and risk consulting.
For further information, visit KPMG's Global Energy Institute.