A. Background In April 2018, the Northem Territory (NT) lifted a two-year morato

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A. Background In April 2018, the Northem Territory (NT) lifted a two-year moratorium on fracking to extract gas, unlocking vast onshore reserves in the resource-rich region. and raising the possibility of other provinces following suit. NT is a 1.4 million sq km expanse of outback extending from the centre of Australia to its northem coastline. NT had banned hydraulic fracturing, commonly known as fracking, in September 2016 amid concems the drilling method could harm the environment. The NT govemment commissioned an inquiry into the environmental, social and economic risks of the extraction process and in April 2018 accepted the inquiry's conclusion that the risks were manageable. Your Client-KEF-Gas Pty. KEF-Gas Pty, is an Australian exploration and production company focused on discovering and recovering natural resources, primarily natural gas, from shale rock. The company is headquartered in Perth, Westem Australia. It is owned by KE Factors Inc., an American company based in Atlanta. KE Factors Inc. was founded in 2006 by Keith Egge upon the acquisition of 46% of Tiara Energy from Ted Tott for US$500 million. Egge previously co-founded Peake Energy with Alice Band and was the chief operating officer of that company from 1989 until 2006. The current CEO is Colin Watch. On June 26th 2016, KE Factors Inc. filed for bankruptcy in America, citing a high debt load and low commodity prices. However, on October 14th 2016, the company emerged from a bankruptcy reorganisation, having reducing debt by US$3.7 bilion, and was again listed on the New York stock exchange. The company now expects all its subsidiary companies to maintain very strict financial controls, and take whatever steps are necessary to preserve capital. KEF-Gas Pty. is regarded as one of its most 'lean' and efficient subsidiary companies. KEF-Gas Pty aims to be a model company for exploring and developing shale gas in Australia. They are acutely aware of the responsibilities this brings, particularly regarding safety, environmental protection and working with local communities. The company believes that shale gas exploration and development can be carried out safely, securely and in an environmentally responsible way, and the company aims to do this so that, as a country Australia has less need to use coal to generate electricity and so maintain a cleaner environment. The company currently has onshore driling licences throughout Australia. The project on which this assignment is based is on the northern coast of the Northern Territory (NT) in an area known as the Cox Peninsula. There are two main residential areas

Explanation / Answer

The case study is about the fracking process in Northern Territory (NT). In northern territory, the fracking process was unblocked after the commission of risks associated with the hydraulic fracking or simply fracking process.

The project stakeholders are

KEF Gas Pty. is an Australian extracting and production company. It is focussed on discovering and recovering natural resources mainly natural gas with shale rocks. This company is a most efficient subsidiary of KE Factors Inc. KEF Gas Pty. is one of the lean and efficient company. They are not aware much about the environment safety, security or protection and working with the local company. The financial control on them is much more. In NT, the project where is operating have 5000 people living around, vine forest, tidal lagoons, fresh wetlands and fauna such as rare bees, fishing ends etc. The issue is that many protest groups are not allowed them to drill this place. Some of them directly affect the fracking process and company assets and some indirectly affect all these.

KE Factors Inc. is the parent company of KEF Gas pty. Hence all the protest indirectly affects the financial losses to the parent company.

Chief Operating Officer of the company manages the project hence any of the decision of him affect the whole company business as well as his position too.

Sponsors groups are not actually understanding the situation as they advising to work continuously as per schedule. They also want to know who are the other stakeholders of the business and communities and the level of security provided to the project.

Government of the Northern Territory concern about the risks associated with the fracking process such are environmental, social and economic.

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