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Tagged: kogas; japex; mitsui
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| February 6, 2012 at 7:20 pm #7178 | |
 maui4marko | >> looks like a strong hint to me! Korea Gas, Japex, Mitsui eye LNG riches in Papua New Guinea by: David Winning and Min-Jeong Lee Increase Text Size IN the race for Papua New Guinea’s gas riches, there’s been a notable absentee up to now: Korea Gas, the world’s top importer of liquefied natural gas by volume. Not any longer. Korea Gas, known as Kogas, is stitching together a consortium involving Mitsui and Japan Petroleum Exploration that aims to join InterOil’s proposed gas-export project in PNG as a strategic partner, a person familiar with the matter told Deal Journal Australia. InterOil said in September 2011 that it had mandated Macquarie Capital, Morgan Stanley and UBS to bring in a company with experience in operating large LNG production facilities. “The considerable strengthening of the Asian LNG market, the increased interest in exploration and investment in Papua New Guinea, as well as the company’s reservoir analysis and project design fundamentals lead the company to believe that now is an attractive time to seek a partner,” InterOil said at the time. On offer is an equity stake in the $US6 billion ($5.59bn) plant that will convert natural gas to a liquid for export as well as associated infrastructure in PNG’s Gulf province. InterOil says it is also willing to sell interests in the Elk and Antelope gas discoveries, along with exploration tenements in PNG. PNG has an estimated 22.6 trillion cubic feet of natural gas reserves, according to UK-based consultancy Wood Mackenzie, but little new local demand for the clean-burning fuel is expected beyond mining developments such as Xstrata’s Frieda River copper-gold project and greater use by households. That’s created an opportunity for some of the world’s biggest energy companies to invest in developing the gas reserves for export as LNG. PNG is poised to join the ranks of LNG exporters in 2014 when the ExxonMobil-led $US15.7bn PNG LNG project is slated to start up. InterOil, which is listed on the New York Stock Exchange, is proposing to build a minimum 7.6 million-tonnes-a-year LNG plant fed by the Elk and Antelope fields. Once construction starts, it typically takes around four to five years before a facility is able to chill its first gas for export as LNG. The person said Korean and Japanese companies initially planned to compete separately to join the InterOil project, but changed tack to work together partly to avoid bidding up the price. InterOil’s advisers asked for bids to be lodged by early December 2011, but this was extended by a couple of months, the person said. Kogas is more interested in operating the LNG plant, while Mitsui and Japan Petroleum Exploration – better known as Japex – are focused on securing interests in gas fields and associated liquids such as condensate, a type of light oil, the person said. Kogas would likely then select a Korean engineering company to build the plant, giving it an opportunity to learn the technology, the person added. In an interview with Dow Jones Newswires last year, Kogas president and chief executive Choo Kang-soo named PNG among four countries that it was targeting for a major natural-gas field development in the near term. The other countries were the US, China and Venezuela. Kogas imported nearly 34m tonnes of LNG last year – equivalent to nearly triple the LNG volumes shipped into neighbouring China. InterOil isn’t alone in hunting for a partner to help develop gas reserves in PNG. Deal Journal Australia reported in December that Canada’s Talisman Energy has appointed Sydney-based advisory RFC Corporate Finance to find an investor for four licences in the forelands of western PNG, which contain a mix of gas discoveries and exploration targets. The company reckons it can aggregate between 2 trillion and 4 trillion cubic feet of gas in Papua New Guinea – enough to underpin a single unit producing LNG for export. ASX-listed Oil Search also opened a data room on its offshore gas fields in the Gulf of Papua in the final quarter of 2011, and has already held preliminary talks with international companies with LNG expertise. “More detailed discussions and active engagement with a number of well qualified parties will occur in the first quarter of 2012, with a view to a farm-down of our large Gulf area interests in due course,” Oil Search managing director Peter Botten said in a statement January 24. However, potential new investors in PNG need a strong appetite for risk. Last month, political tensions flared when a former colonel mutinied and detained the head of the armed forces, seeking to restore former prime minister Michael Somare to power. The mutiny was quickly suppressed by forces loyal to current PM Peter O’Neill, who took office when Mr Somare was out of the country due to illness last year. “These developments have increased the risks of the country losing donor support and much needed investments, in our view,” Standard & Poor’s said in a January 27 note as it cut the outlook on PNG’s long-term sovereign credit rating to negative from stable. |
| February 6, 2012 at 7:28 pm #7179 | |
| maui4marko | Interesting how Japan is extending the keiretsu arrangement to their traditional rivals, the Koreans. In this case, I understand the need to band together to try and limit price hikes. They’ll still have to deal with the Chinese on that front though. I did like these quotes:
What do you make of this statement:
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| February 6, 2012 at 7:31 pm #7180 | |
 Tree | Maui4mitsui, |
| February 6, 2012 at 7:32 pm #7181 | |
 Libtardius Maximus | nice pull maui, complete with tomorrow’s date, here’s the key graph for me… InterOil’s advisers asked for bids to be lodged by early December 2011, but this was extended by a couple of months, the person said. *** aren’t we now a couple of months from early December 2011? |
| February 6, 2012 at 7:40 pm #7182 | |
| Tree | When Jobama said he wanted 1/2 off LNG from PNG almost 2 years ago, I guess he means it. HoHoHo. |
| February 6, 2012 at 7:44 pm #7183 | |
 geologydude | PPS going ballistic…over 70 right now after news out in WSJ report! |
| February 6, 2012 at 7:50 pm #7184 | |
| maui4marko | Tree must’ve dumped his Air Jordan Silver Sneakers on craigs list and used the cash to grab those 5,ooo after hours shares at 70-1/2… nice move AirTree |
| February 6, 2012 at 7:51 pm #7185 | |
| Tree | Another report, different color. ********** Kogas, Japanese firms may join InterOil project By David Winning – Kogas keen to run LNG plant, Japanese firms eye upstream assets – Companies shelved plans to act separately to avoid bidding up price (Adds PNG gas reserves estimate in fifth paragraph, Exxon-led project in sixth, political tensions in seventh to ninth, more details on bid talks in tenth to seventeenth.) SYDNEY (MarketWatch) — Korea Gas Corp. is in talks with two Japanese companies aimed at bidding together to join InterOil Corp.’s IOC +3.45% proposed multibillion dollar gas-export project in Papua New Guinea, a person familiar with the matter said. Korea Gas, known as Kogas, is seeking to form a consortium with Mitsui & Co. and Japan Petroleum Exploration Co. with a view to becoming strategic partners in InterOil’s Gulf LNG project, which aims to produce a minimum of 7.6 million tons of liquefied natural gas annually. InterOil said Sept. 30 it had mandated Morgan Stanley MS +0.98% , UBS AG UBS -0.14% and a unit of Australia’s Macquarie Group to bring in a company with experience operating large LNG production facilities. It is offering an equity stake in the US$6 billion LNG processing plant, as well as nearby infrastructure in Papua New Guinea’s Gulf province. InterOil says it is also willing to sell interests in the Elk and Antelope natural gas discoveries, along with exploration tenements in the country. Papua New Guinea has an estimated 22.6 trillion cubic feet of natural gas reserves, according to U.K.-based consultancy Wood Mackenzie, making it an attractive target for international energy companies seeking to develop projects that can export gas to booming Asian economies such as China. ExxonMobil Corp. (XOM) and partners are investing US$15.7 billion to build the PNG project, which aims to ship LNG to customers in Japan, China and Taiwan from 2014. Canada’s Talisman Energy Inc. (TLM) has also aggressively acquired tenements in Papua New Guinea with a view to aggregating gas reserves that could support an export facility. However, investors in Papua New Guinea have to shoulder rising political risk. Last month, a former colonel mutinied and detained the head of the armed forces in the latest twist to a power struggle between Prime Minister Peter O’Neill and his predecessor Michael Somare. “These developments have increased the risks of the country losing donor support and much needed investments,” Standard & Poor’s said in a Jan. 27 note as it cut the outlook on Papua New Guinea’s long-term sovereign credit rating to negative from stable. The person said the Korean and Japanese companies initially planned to compete separately to join the InterOil project, but changed tack to work together partly to avoid bidding up the price. InterOil’s advisers asked for bids to be lodged in early December last year, but this was extended by a couple of months, the person said. Kogas is more interested in operating the LNG plant, while Mitsui and Japan Petroleum Exploration–better known as Japex–are focused on securing interests in gas fields and associated liquids such as condensate, a type of light oil, the person added. Kogas would likely then select a Korean engineering company to build the plant, giving it an opportunity to learn the technology, the person said. In an interview with Dow Jones Newswires last year, Kogas president and chief executive Choo Kang-soo named Papua New Guinea among four countries it was targeting for a major natural-gas field development in the near term. The other countries were the U.S., China and Venezuela. Kogas imported nearly 34 million tons of LNG last year–equivalent to nearly triple the LNG volumes shipped into neighboring China. Spokespeople for Japex and Kogas declined to comment. An InterOil spokesman didn’t respond to requests for comment. A Mitsui spokesman said it was still considering evaluating a venture to strip condensate from the raw gas produced at the Elk and Antelope fields, but it hasn’t made a firm decision. Mitsui signed a preliminary works joint venture with InterOil for a condensate-stripping plant in April 2010. |
| February 6, 2012 at 7:52 pm #7186 | |
 admin | Nice find, Maui! Some nice counterbalance to Shell and Exxon. With the Russians unreliable, the Qataries dependent on Hormuz being open and the Indonesians reducing exports and the Australians quite expensive, where else were they’re going to go? The Canada, the US, perhaps, but export is still mostly being deliberated, apart from Cherniere. |
| February 6, 2012 at 7:59 pm #7187 | |
| Tree | This article and reporting was a heck of a well kept secret. Guess the CAs did their job. Me gut says, KOGAS/Mitsui/JAPEX saying they are ‘seeking’ means they already have agreements in principle. STP, I’d imagine a big Sumo can quite effortlessly block that back door. |
| February 6, 2012 at 7:59 pm #7188 | |
 jft310 | I think we get EWC/Mitsui and FLEX and Kogas learns to build an additional stick built plant. As I detailed seperately this AM. My best guess. |
| February 6, 2012 at 8:07 pm #7190 | |
 Palmtok | So, we’ve been pounding the table for 2 years that JAPEX would be in this project based on the agreement they signed with Petromin in April 2010. The big part of this was funding Petromin’s share of their equity. But many have doubted. Guess what? It’s happening. As well KOGAS. They and Japan (specifically Mitsui) have worked together many times and trust each other. Recently SC and PNG struck an agreement to work together and it was obvious they want KOGAS involved as well as to back Samsung and Daewoo with the FLNG’s. Wouldn’t at all be surprised that as part of this we get that 2nd FLNG which would draw Petromin and IOC back together. Success for everyone. We would be wrong if this does come about to not recognize Somare’s contribution to this whole partnership. It was he who traveled to Japan in March 2010 for the Japan-PNG Summit along with Petromin, IOC and others to sign agreements, acknowledge the long history of Japan and PNG, open up the new embassy there and bring home these agreements for Petromin and PNG. Great find Maui!! Here’s to all that have stuck together through this in the face of many critics and crooks. This could get fun once again! |
| February 6, 2012 at 8:08 pm #7191 | |
| Tree | Yup we keep Gulf LNG as configured with these guys. They are the end users and price is king for them. Profit in the integrated value chain goes a long way in keeping their prices low. Think about it, if ennerOle were to allow EWC/Flex to be booted and replaced with a 16$ billion plant then IOC would need to cough up 4$ billion to keep a 25% stake and Pac LNG at least a couple billion. In return ennerOle would get a smaller ROI too. Logic says ‘No way Jose’ on that proposition, it ain’t happening. |
| February 6, 2012 at 8:09 pm #7192 | |
 efi426hemi | MauiYourTimingCouldntBeBetterMarko, I would be super stoked to have this scenario unfold. Bidding must be heating up with BP announcing they are in the fold yesterday too! The next couple of months should be very exciting! Health and Happiness, |
| February 6, 2012 at 8:15 pm #7193 | |
| Palmtok | Ken, that was one heck of a post from this AM! Missed it, but just read it! You and all of your “lies”. Hohoho |
| February 6, 2012 at 8:27 pm #7194 | |
| Tree | Gee Palm, |
| February 6, 2012 at 8:40 pm #7197 | |
| Palmtok | Treedaddy, Mr Duma will be very happy with this; while they are in office this comes together. He called this “his” project given tohimby Somare. Petromin can hardly say “no”: |
| February 6, 2012 at 8:55 pm #7198 | |
| Palmtok | You don’t suppose this could be a “Bidders Be ‘Ware” volly by Japan and S Korea do you? This “leaks” out to press after several months of these 2 countries mentioning how much money is in their coffers to secure energy assets. |
| February 6, 2012 at 9:03 pm #7199 | |
| Tree | Gee Palm, |
| February 6, 2012 at 9:11 pm #7200 | |
| Palmtok | Well Treemod I believe it was Japan that did a very comprehensive study a few years back specifically on modular LNG plants in PNG to see whether they could work. Conclusion was, “YES” in Japanese. Maybe your taproot could do some digging and yank that up for us> |
| February 6, 2012 at 9:18 pm #7202 | |
 Tusker | Hey – over here, uh – excuse me, what’s all the fuss about. I’m out here, with my anchor dropped on top of this reef, watching the whale sharks swimming by, and the rum and coke I ordered from the nice young lady hasn’t made it back from the sandy beach yet. What’s wrong here. Ha ha Tusk |
| February 6, 2012 at 9:25 pm #7203 | |
| Tree | She dropped your Cap’n Morgan at my hut and put it on you bill! Stop by and the missus of your choice will apply sun screen where ever you want it! I’ve ordered new ray-bans for us, hope they’re here in time for T-2′s flare. |
| February 6, 2012 at 9:28 pm #7205 | |
| admin | Tree: ["Think about it, if ennerOle were to allow EWC/Flex to be booted and replaced with a 16$ billion plant then IOC would need to cough up 4$ billion to keep a 25% stake and Pac LNG at least a couple billion. In return ennerOle would get a smaller ROI too. Logic says ‘No way Jose’ on that proposition, it ain’t happening."] This is one of the reasons why the drilling is so important, hitting a reef in T2 will give them that many more options, improving their leverage and negotiating position.. |
| February 7, 2012 at 6:30 am #7216 | |
 Bincbanker | hihihi BOOM!!!!!!!!!!!!!!!!!!!!!!!!!!!! |
| February 7, 2012 at 8:52 am #7225 | |
 jonleba127 | This is starting to make more sense. Wayne had to talk in soundbites not to give the family secrets away. He did mention Mitsui was eager but they were afraid they would be cast aside if a gorilla took over. He kept on bringing up the subject we do not need a major to be the operator, we can hire an operator. Mitsui, Japex, and Kogas bring, Money, Brains, Political Clout and large quality, most important quanity end users. I vote for them. Everybody else can fight for the trillions of gas in PPL236. |
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