'cybersssss' pid='18977' datel Wrote:

I find it very hard to believe that the visit to Japan is primarily concerning Interoil and "the deal."  As it was said by the company, the bidders have been pre-approved so there really is no "feeling out."  The company needs to decide which is the best deal for them. The government should have no say as to who they choose once the conditions they set forth are met.  Bidders being preapproved implies to me that the condiitons have been met with these bidders.

I think PNG still "has say", from a legal standpoint, because the proposed deal likely doesn't comply with the specific terms of the old PA.  IOC wants a different size/structure; PNG has already given the "tentative approval"; PNG has assigned a committee to "negotiate" the new PA...but the task hasn't been formally accomplished to date.  In theory the bidders may have all been "pre-approved", but the terms of the deal also need to comply with the old contract terms...or they need a new formalized document revising the acceptable terms.  That is where I think PNG's continuing "say" comes from.  It is quite possible that the committee didn't finalize the new PA before now specifcally so they could see the "winning bid" first and retain some negotiating power.  One could infer that IOC has disclosed to O'Neil that JKM has "won" the bidding as far as IOC is concerned, and that this trip is what O'Neil wants before giving the final go-ahead for the revised PA.  IOC hasn't announced anything yet because there is no "deal" without the new PA.   If so, we might get all the news at the same time.

Again, when things get to the "final" stages certain formalities must happen, especially when you are talking about agreements between countries.  Three very important agreements were officially signed that do/could involve IOC's project:

1. March 29, 2010 "Petromin signs Principle Agreement with Japan Petroleum Exploration Co., Ltd (Japex)"
"Papua New Guinea ’s national, oil, gas and minerals company Petromin PNG Holdings Limited(Petromin) has entered into a long-term strategic partnership arrangement with Japan Petroleum Exploration Co., Ltd (Japex).
 Japex is a publicly listed company and partly owned by the Japanese Government. It is the exploration and development company with oil and LNG interests in Japan and other parts of the world.
 The Agreement on Principles for a Long-term Strategic Partnership was signed in Tokyo on Tuesday 30th March, 2010 in the presence of the Prime Minister, Grand Chief Sir Michael Somare by the President of Japex, Mr Osamu Watanabe and Managing Director of Petromin, Mr. Joshua Kalinoe.
 In the signing ceremony, Mr. Kalinoe said the purpose and intent of the Agreement is significant for Petromin because of the value it will bring to the development efforts of the company in both operational and human resource development. Mr. Kalinoe said the Agreement allows Japex and Petromin to work together in assessing the development opportunities in the hydro -carbon business in Papua New Guinea , both at exploration and development stages. Japex will train Petromin staff in all aspects of the hydro-carbon business, including commercial and technical operations using Japex facilities in Japan and elsewhere.
 Mr. Kalinoe said both Japex and Petromin have agreed to form a relationship that would also facilitate Petromin’s financial obligations in exploration and development, including the Elk/Antelop LNG project.
 As part of the strategic partnership agreement, a number of technical staff from Petromin will be travelling to Japan in April to work with Japex’s staff on LNG project design and planning, including reservoir management and modelling.
 Mr. Kalinoe said, he is excited about the long-term benefit that this relationship with Japex will bring to the capacity building needs of Petromin in both human resource development and technology transfer."

2. March 31, 2010- "Petromin Congratulates Interoil & Mitsui Corporation"

"The Managing Director and CEO of Petromin, Mr. Joshua Kalinoe has congratulated InterOil and Mitsui Corporation for entering into a Preliminary Commitment Agreement for developing phase one of the Elk/Antelope LNG project, subject to final ratifications.
Phase one of the project includes the extraction of condensate and development of upstream LNG extraction facilities.
Mr. Kalinoe made these remarks on the occasion of the signing ceremony in Tokyo of the Commitment Agreement between InterOil and Mitsui in front of the Prime Minister, Grand Chief Sir Michael Somare on Tuesday 30th March, 2010.
InterOil is the upstream operator for the Elk/Antelope LNG project and Mitsui Corporation is one of the leading Japanese investment and trading companies.
The Preliminary Commitment Agreement allows Mitsui to fund 100 percent cost of the Condensate Stripping Facilities (CSF) which includes a liquid separation plant and pipeline in the project area, and earn tolling fees and various other benefits. Mr. Kalinoe said, under the arrangement Mitsui will also fund Petromin’s share of the condensate extraction costs. This means that Petromin and the State will not have to seek separate financing arrangements to fund their share of the equity.
Mr. Kalinoe said that it is one of the best project financing deals for the current partners in the project which includes Petromin, InterOil and Pacific LNG. It also means that early revenue for Petromin and the State from the Condensate Stripping component of Elk/Antelope LNG project where first cargo of condensate is expected by the second half of 2012.
Under the arrangements Mitsui will co-build the extraction facilities and will receive toll fee as well as financing cost from condensate revenue at first production of condensate. The condensate will be sold on a net back basis to the InterOil refinery in Port Moresby at international market and local PNG market prices.
Mr. Kalinoe said this arrangement adds more value to Papua New Guinea than any other projects where all the LNG products are sold overseas."

http://www.petrominpng.com.pg/news/press/petromin%20-%20congratulates%20-%20interoil%20-%20%26%20-%20mitsui%20-%20corporation.html

3. July 4, 2010- "Petromin and Mitsui sign MOU to develop opportunities in Gas-Based industries"

"Papua New Guinea’s national oil, gas & minerals company, Petromin PNG Holdings Limited, has signed an MOU on Friday in Port Moresby with Mitsui & Co Ltd, Japan’s major trading company, to jointly undertake feasibility studies designed to identify and establish new PNG businesses based on the country’s gas resources.
Petromin Managing Director and CEO, Joshua Kalinoe and Mr Shintaro Ambe, Managing Officer of Mitsui’s Infrastructure Projects Business Unit said in a joint statement that Petromin and Mitsui want to see downstream businesses established which will create long term employment opportunities for Papua New Guineans."

http://www.petrominpng.com.pg/news/press/Petromin%20-%20signs%20-%20MOU%20-%a0with%20-%20Mitsui.html

All of these involve agreements between JAPEX/Mitsui and Petromin and this had been worked on between the governments.  I strongly believe that Petromin will not be the ending holder of the Gulf LNG State interest; likely NPCP will.  With the above agreements having been made Japan must have formal explanation and agree with breaking these agreements with Petromin and having them assigned to NPCP.  It sounds as if there is a pretty large delegation of people going to Japan, and last time (March 2010) reps of IOC were included as well as reps of Petromin.  We could see the same thing this time.  I'm not saying that the main reason O'Neill and the thers are going to Japan is for Gulf LNG, but there is likely going to be some of the trip devoted to it.  PNG and Japan have a good relationship and this needs to be respected and nurturede.  O'Neill is very good at this; he understands.

'cybersssss' pid='18980' datel Wrote:I don't think there is any hold up. This is a big deal with lots of money involved and lawyers involved. Its been a couple weeks since the bids were due and the apparent BOD meeting in Hawaii was last weekend where they would have presumably chosen the winning bid. I believe that they will announce the winner once the paperwork is signed by all parties. I do not think it will be long but to be done 5 days after a bid was chosen is asking a bit much.

I think this discussion is ignoring that this deal has been split into two 3.8t parts - and the gov't is being entrepreneurial with their 50% of deal 2.  Duma, as he poined out large, was negotiating what the "commercial terms" of Deal 2 are and O'Neill is sealing the second deal.

CAC- You have figured this out properly.and IOC may not be the only thing on the Japan trip thats talked about to that we agree. But it the main reason others can argue about the %'s. Some may need to relook at the PNG Budget and see the revenue anticpated from the Gulf LNG Project.That revenue source needs to be nailed down ASAP. Getit!

Interesting because in early March she did quite of bit of talking trade with Belgium: "Thailand-Belgium relations tightened during PM Yinglucks visit BRUSSELS, 7 March 2013 (NNT) — Thailand has assured Belgium of its readiness to be the gateway to the Southeast Asian region and to be one of a prime destination for Belgian investors.

'bertl05' pid='18991' datel Wrote:The conversations (most of the important ones are not conducted by the pm's) will most likely have little to do with IOC. After several years of mutual courtship between mitsui, japex and IOC, the cards adre on the table on a bureaucratic (most important) level. This is a political trip to welcome the new Japanese PM. Nothing more. As far as Lingluck in Thailand is concer4ned, that is even less important. Lingluck Thaksin is the youngewr sister of the former , and now exciled Thinawatra Takisin. The Red party is the party of the country people, approx 70 %. Mostly poor and rural. The yellow party is the middle and upper class, mostly in Bangkok. The Reds have survived a recent coupe and won the last 2 elections. Many in Bangkok (educated and members of high standing) have a great disdain for Lingluck and her brother. After the problems from the flood od 2011 Lingluck's favor has even eroded in the rural areas. She is now in the process of trying to gain regional solidaraty, hence her visit to PNG. Historically Thailand has viewed PNG as a veritable jungle province. Any Thai Investment in PNG will be far down the road. I assure you Linglucks meeting with ONeil is simply political power building on Lingyucks part, Spoken as one that has spent over 15 yrs in Thailand.

Does the name Pioneer Group of Companies or United Communications Industry sould familiar?

Cheers

Hey Palm,

This line from your post says it all:

Mr. Kalinoe made these remarks on the occasion of the signing ceremony in Tokyo of the Commitment Agreement between InterOil and Mitsui in front of the Prime Minister, Grand Chief Sir Michael Somare on Tuesday 30th March, 2010.

This deal is going to be announced with the PNG government, IOC and the winning bidder.  Clearly it takes time to get all these people together and I would be thrilled if it happens this week. So very very close........