Local lawyers appeal to Asian gas giants

International companies dealing in the liquefied natural gas market are increasingly using the legal services of Australian law firms, with Perth-based lawyers receiving a growing slice of the important Asian market.

Two Australian law firms recently played major roles advising on an estimated $A2.9 billion LNG sales and purchase agreement between South Korean steel manufacturer POSCO and a BP-led consortium.

Under the agreement, which was signed last week in Bali, the BP consortium will supply POSCO with 550,000 tons of LNG per annum from the large Indonesian Tangguh gas field over the next 20 years.

The agreement means not only will POSCO become the first private company to import liquefied natural gas (LNG) into South Korea, but it signals the growing presence of Australian law firms in international LNG and energy deals.

Phillips Fox’s Vietnam legal team advised BP on the deal, while Corrs Chambers Westgarth advised POSCO.

Corrs Chambers Westgarth CEO and partner John Denton singled out the firm’s Perth team for special attention.

“Our team has demonstrated its continuing strength in energy issues by advising on such an important project. It also shows the increasing role of Perth-based lawyers in major international energy transactions,” Mr Denton said.

Corrs Chambers Westgarth Perth-based partner John King led the team that advised POSCO.

Mr King, who has worked with major law firms in London and Houston, and specialises in the petroleum sector, worked from Perth orchestrating the entire legal drafting and negotiating of the deal.

He said the agreement was one of a number of high-profile Asian LNG agreements to be signed over the next few years, which would benefit local businesses across the board.

Mr King said many major oil and gas producers were relocating from their traditional bases to Perth to position themselves for emerging customer opportunities, particularly in South Korea and China, as well as the west coast of the US.

“There are a number of long-term Asian contracts coming up for renewal within the next five to seven years,” he said.

“This provides an excellent opportunity for oil and gas consortiums looking for new contracts to underpin their developments.”

The Woodside-led North-West Shelf joint venture has signed the $25 billion Guangdong contract with China, while the large Chevron Texaco-led Gorgon consortium and others are understood to be looking for upcoming opportunities in South Korea, China and Taiwan.