The P'nyang Paradox And Why Exxon Needs InterOil's Gas
Apr 30 2013, 14:08  |  about: IOC, includes: RDS.A, TOT, XOM
Disclosure: I am long IOC. (More...)

The PNG LNG project is a $19 billion Exxon Mobil (XOM) operated 6.9 million ton per annum (mtpa) natural gas liquefaction project in Papua New Guinea (PNG). Exxon and Oil Search, the largest independent oil and gas producer in PNG, own 33.2% and 29% of the project respectively. Oil Search recently reported that the PNG LNG project was over 80% complete and on track for first LNG sales in 2014. The project's LNG storage tanks and jetty can accommodate additional capacity, and the LNG precinct has adequate room for a total of eight LNG trains. Hence, with an economically viable gas resource to underpin PNG LNG's expansion, the marginal returns associated with adding new trains should exceed the project's already world leading economics, as most of the fixed infrastructure has already been constructed.

In its presentation at the Goldman Sachs Australasian Investment Forum in March 2013, Oil Search acknowledged that "expansion of PNG LNG is [the] highest value opportunity in [its] portfolio". ExxonMobil senior vice-president Mark Albers said at its recent analyst meeting that the company aimed to add to its resource base and that there was plenty of room on the LNG facility to add a "third, fourth and fifth train". [Read on here]

[Message from Admin: One cannot publish whole SA articles here...]

'jft310' pid='21732' datel Wrote:

The P'nyang Paradox And Why Exxon Needs InterOil's Gas
Apr 30 2013, 14:08  |  about: IOC, includes: RDS.A, TOT, XOM
Disclosure: I am long IOC. (More...)

The PNG LNG project is a $19 billion Exxon Mobil (XOM) operated 6.9 million ton per annum (mtpa) natural gas liquefaction project in Papua New Guinea (PNG). Exxon and Oil Search, the largest independent oil and gas producer in PNG, own 33.2% and 29% of the project respectively. Oil Search recently reported that the PNG LNG project was over 80% complete and on track for first LNG sales in 2014. The project's LNG storage tanks and jetty can accommodate additional capacity, and the LNG precinct has adequate room for a total of eight LNG trains. Hence, with an economically viable gas resource to underpin PNG LNG's expansion, the marginal returns associated with adding new trains should exceed the project's already world leading economics, as most of the fixed infrastructure has already been constructed.

In its presentation at the Goldman Sachs Australasian Investment Forum in March 2013, Oil Search acknowledged that "expansion of PNG LNG is [the] highest value opportunity in [its] portfolio". ExxonMobil senior vice-president Mark Albers said at its recent analyst meeting that the company aimed to add to its resource base and that there was plenty of room on the LNG facility to add a "third, fourth and fifth train". [Read on here]

One cannot publish whole SA articles here...

'petrengr1' pid='21736' datel Wrote:

'jft310' pid='21732' datel Wrote:

The P'nyang Paradox And Why Exxon Needs InterOil's Gas
Apr 30 2013, 14:08  |  about: IOC, includes: RDS.A, TOT, XOM
Disclosure: I am long IOC. (More...)

The PNG LNG project is a $19 billion Exxon Mobil (XOM) operated 6.9 million ton per annum (mtpa) natural gas liquefaction project in Papua New Guinea (PNG). Exxon and Oil Search, the largest independent oil and gas producer in PNG, own 33.2% and 29% of the project respectively. Oil Search recently reported that the PNG LNG project was over 80% complete and on track for first LNG sales in 2014. The project's LNG storage tanks and jetty can accommodate additional capacity, and the LNG precinct has adequate room for a total of eight LNG trains. Hence, with an economically viable gas resource to underpin PNG LNG's expansion, the marginal returns associated with adding new trains should exceed the project's already world leading economics, as most of the fixed infrastructure has already been constructed.

In its presentation at the Goldman Sachs Australasian Investment Forum in March 2013, Oil Search acknowledged that "expansion of PNG LNG is [the] highest value opportunity in [its] portfolio". ExxonMobil senior vice-president Mark Albers said at its recent analyst meeting that the company aimed to add to its resource base and that there was plenty of room on the LNG facility to add a "third, fourth and fifth train". [Read on here]

One cannot publish whole SA articles here...

If I were Phil there are two things that might make me retire.

1. All or a major part of the licenses were obtained by the winning bidder who happened to be the outfit that tried to steal the licenses.

2. All or a major part of the licenses were obtained by Exxon as the winning bidder and my dream of having an LNG Plant with LNG marketing vanished.

And we could have a winner here!

'Getitrt2' pid='21741' datel Wrote:I don't know this for sure, or course, but I'm beginning to think we are down to a final battle/bidding war between Exxon and Total. Maybe PNG wants both and both will end up in a deal somehow. On the other hand, maybe neither thinks there is room for the other!

I am hearing the same thing, that it is down to a bidding war between Exxon and Total.  I would have to think that PNG wants another major involved so Exxon does not have so much power, but as to whether they will insist upon it is another matter.  Can Exxon offer PNG assurances so that it need not fear domination?  Does PNG have a stick it can wield on Exxon if it is too beligerent?  I think Exxon wants the resource more than anyone else, as today's SA article wstrongly supports, so  WHEN will IOC/PNG decide?!