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+--- Thread: Kogas-Japex-Mitsui lashup (/showthread.php?tid=347)
- Tusker - 02-08-2012
KJM would be a very solid project with US allies in the region.
I second that vote.
- petrengr1 - 02-08-2012
From Raymond James this AM:
InterOil Corp. (IOC/$67.32/Outperform) reportedly gets LNG project interest from Kogas, Japex, and Mitsui. According to a Dow Jones article published yesterday after market close, three large Asian companies - Kogas from Korea, along with Japex and Mitsui from Japan - are in talks to form a bidding consortium for joining InterOil's LNG project. The article cites unnamed sources. Some specific highlights from the article: (1) the three companies originally planned to bid separately but now want to collaborate "partly to avoid bidding up the price"; (2) bids were due in early December, but the deadline was extended "by a couple of months"; and (3) Kogas aims to be the LNG plant operator, while Mitsui and Japex want to buy a stake in the underlying resource. None of this is especially surprising; Mitsui, after all, is already an InterOil partner (for the condensate stripping plant), and the other two companies are known for their interest in Asia-Pacific energy projects. However, the specificity with which the companies are identified by a major newswire service is not something that we've encountered in the past. We would expect IOC shares to do well today as the market begins to price in a greater likelihood of the long-awaited resource selldown to one or more strategic partners
- jft310 - 02-08-2012
This story was released to put pressure on Duma and the NEC to approve IOC move to Gulf and their choice of partners is what I think.
- admin - 02-08-2012
That's particularly efficient pressure as they can't afford to upset the biggest LNG importers and regional powers all too publicly. Pavel should up his price target though..
If they hit a reef in T2, they'll be the crown jewel in Asia, can't wait for that.
- jft310 - 02-08-2012
Betting against Dave Holland has not been smart in the past. He is the IOC NG/Liquids finding man.
- Palm - 02-08-2012
LNG Industry News article; a little more color on deal; says S Korean firm would be appointed to build the LNG plant to gain experience in LNG. Interesting. Also has a picture of the ambassador from SK at the Elk 4 site:
"Make PNG my HomePage
Asian triumvirate for InterOil LNG project
Wednesday, 8 February 2012
SPECULATION is mounting a joint venture of Kogas, Mitsui and Japan Petroleum exploration could join InterOil as a partner on its proposed LNG export project in Papua New Guinea.
Ambassador for South Korea Sangyoon Park at Elk-4 in PNG
The Wall Street Journal cited an anonymous source close to the deal as saying the consortium will seek an equity stake in the $US6 billion ($A5.55 billion) project, with InterOil flagging the possibility of selling a stake in the Elk and Antelope fields as part of any deal.
The source said that the three companies had considered bidding for stakes separately but decided to join up on fears that the bidding war would drive the sale price up.
Under the speculated deal, Kogas would seek to operate the LNG plant, appointing a Korean company to build the plant and giving the Korean firm experience in LNG.
Kogas imported more than 34 million tonnes of LNG last year, triple the amount shipped into China.
Mitsui and Japan Petroleum Exploration would be more interested in securing stakes in the Elk and Antelope gas and condensate fields.
Mitsui and InterOil are already in business together, signing a joint venture operating agreement in 2010 for a proposed $US550 million ($A508.82 million) condensate stripping facility at the Elk and Antelope fields.
The project has yet to reach final investment decision.
Last week InterOil revealed that it was in talks with “several internationally recognised” players about taking a stake in the proposed 7.6 million tonnes per annum project.
In a presentation at the IPAA Oil & Gas Investment Symposia in Florida, InterOil capital markets vice-president Wayne Andrews said the ongoing negotiations involved a sale of its interest in the Elk and Antelope fields (InterOil 58.6%) and participation in its exploration tenements.
The hunt for a suitable world-class operator for the Gulf LNG project was started in October on the back of criticism from PNG’s Petroleum and Energy Minister William Duma.
Andrews said the investment banks of Morgan Stanley, Macquarie and UBS were still retained as joint financial advisors to evaluate proposals from potential strategic partners."
http://www.pngindustrynews.net/storyview.asp?storyid=3199644§ionsource=s0#
- jonleba127 - 02-08-2012
IT IS ALL ABOUT CONTROL.. KJM may not be the highest bidder. IOC #1 fear is at the end of the bidding process losing control of the project to last minute high bid from unfriendly Gorilla#1. Gorilla#1 wants a big % of IOC action. Yes some money upfront but not the big bucks if IOC can hang on. KJM does not want a bidding war, they offer a lessor amount but IOC has to give up only 20%, Pacific LNG 10%. IOC keeps control of E/A and T2. No problem keeping EWC and FLEX, production starts on time. IOC gives up a up a little upfront makes more in the future. Who would not want the biggest end users as your partners? PNG politicos may want Gorilla#1, but they would be hard pressed to deny a deal with KJM. IOC JVs 236 with one of the other bidders, gets money upfront from them and HOAs. These press releases are not by accident. IOC is in a very good position.
- jft310 - 02-08-2012
Yep,I heard the same yesterday from a VERY large shareholder non IOC source.Exxon seems interested in 236.
- Palm - 02-08-2012
Great info jonleba and Kenny. You would hope that in the end NEC/DPE/Petromin will agree to the deal IOC wants as long as it meets all of their objectives. That will be a big job for IOC, but that's why they have Sir Rabbie also. With Petromin having signed the agreement with JAPEX which included JAPEX funding Petromin's capital requirements they shouldn't have a problem at all with JAPEX. KOGAS only brings more strength and improved relations with S Korea.
- efi426hemi - 02-08-2012
Great post Jonleba, many thanx for taking the time.
efi