Lpg Case

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1.Introduction
Woodside Petroleum Ltd. (WPL) is listing in the top 50 in ASX, and it is a strong performer in the Austrian energy industry. To compare the high performance in Australia, Woodside is still has a long way to become one of the world-class energy companies, such as BP, Royal Dutch, ExxonMobil and Gazprom. Woodside needs to expand its overseas business to achieve its vision. Indonesia is the ideal country for Woodside to do its business oversea, and this is because not only Indonesia is a country rich in the LPG resource, but also because Indonesia’s advanced location in the Asia-Pacific region. Woodside Petroleum is entry in the Indonesia market with its LPG product and its technical service on exploration and development of gas. Indonesia is an emerging market with high economic growth, rich resource, low labor cost; however, the business environment in Indonesia has lots of shortage. The right entry Strategy is the key to ensure a success investment in Indonesia for Woodside Company. This report indicate right entry mode under a critical Indonesia’s environmental PESTEL analysis. Firstly, this report wills private the background of the Woodside Company and Indonesia. Then, this report will indicate an Indonesia and ASEAN’s PESTEL analysis. Furthermore, this report will concern the critical strategy to entry in Indonesia market and logical recommendation.

2.Background

Global LNG’s producers and buyers
Before the detail background of Woodside, Indonesia, and the LPG industry, the follow chart show the major LNG producers and global buyers. The LNG buyers’ chart indicates that the Asian market takes over 60% of the global LNG markets. The other chart shows that ASEAN countries are the main producers in the worldwide. Moreover, Australia is at the forth place to makes LNG in the world wide.

Source: Alaska Natural Gas Transcription Projects (2012)

Background of the Woodside Petroleum Ltd
Woodside Petroleum Ltd. (WPL), be founded in 1954, is the largest operator of oil and gas production in Australia. Woodside’s operated facilities, which are six liquefied natural gas (LNG) trains, five offshore platforms, and four oil floating production storages. Thus Woodside produces 700,000 barrels of oil every day. (WPL 2011) In Australia, Woodside Petroleum Ltd. currently operates four major projects, including North West Shelf Project, Browse LNG Development, Pluto LNG Project and Sunrise LNG Development. North West Shelf Project located 1,600 kilometers north of Perth, Western Australia and covering approximately 200 hectares and it account as the landmark of Woodside Petroleum Ltd.(WPL 2011)

The Vision of Woodside
With the vision of be a world-class LNG leader, Woodside Petroleum Ltd. also produce, sales the natural gas to Japan, China, Republic of Korea and other countries. Currently, the deepwater production facilities in the Gulf of Mexico and the exploration acreage in the USA, Brazil and Republic of Korea are the mainly International performance of the Woodside Petroleum Ltd. Although Woodside’s worldwide assets operate smooth and their performance is remarkable, Woodside still has a long way to be a world-class LNG leader.

Worldwide future LNG Trade
Global LNG demand was increased by 57 billion cubic feet per day from 2000 to 2007, which is increased nearly by 25% than the year 2000. (EIA 2003) According to the date from Global LNG Tool, the LNG demand in the worldwide will continually increase at a rate of 4% to 5% in the next decade after 2007. Although the USA is still the biggest market and driver this huge increasing demand, the Asia-Pacific region is also play the important role of contribute to huge demand. Countries in the Asia-Pacific region are high in their economic growth and these countries consume a lot of energy, which has consequence air quality decreasing and air pollution. LNG as a kind of clean energy is seen as the key solution to deal with these...
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