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+--- Thread: Revised Deal (/showthread.php?tid=6248)
RE: Revised Deal - Brew Swillis - 03-27-2014
'Palm' pid='40015' datel Wrote:
'Brew Swillis' pid='40014' datel Wrote:
'Palm' pid='39909' datel Wrote:"Joint venturers share objectives with PNG Government to monetise gas as quickly as possible." “The agreement enabled InterOil to maintain a material interest in PRL 15, which covers one of Asia’s largest gas discoveries of the past 20 years. The agreement clears the way for co-operative joint venturers, who all share the Government’s wish to monetise Elk- Antelope as quickly as possible, through the fast-growing Asian market. InterOil now has a solid partnership where Total can use its considerable LNG expertise to develop Papua New Guinea’s second LNG project.” Obviously shows they are open to working with the government on both expansion and a standalone as we have been saying. They will all be working together to determine what "as quickly as possible end up meaning."
More color.
http://www.reuters.com/article/2014/03/26/papua-total-interoil-idUSL4N0MN1N920140326
Total seals deal for smaller stake in Papua New Guinea bloc
MELBOURNE, March 26 (Reuters) - Total has agreed to buy a 40 percent stake in Papua New Guinea's largest undeveloped gas field from InterOil Corp, in a revised deal announced on Wednesday, giving the French oil giant a smaller stake than first planned.
InterOil estimated it could receive between $1.62 billion and $3.5 billion all together from Total, depending on how large a reserve of gas is found in the fields.
The final stakes in the deal, which was first announced in December, were changed to reflect the acquisition by Oil Search of a 22.8 percent interest in the Elk and Antelope fields earlier this month.
Total will make an initial payment of $401 million for its 40.1 percent stake, down from a 61.3 percent stake.
A further $138 million will be due in two instalments when a final investment decision is made for an Elk-Antelope liquefied natural gas project and a first cargo is exported. Additional payments will be due based on the volume of gas discovered in the license area.
Once the reserves are certified, the project partners will have to decide whether to build a standalone LNG project, which Total and InterOil favour, or use the Elk and Antelope gas for an expansion of ExxonMobil's PNG LNG project, likely to be Oil Search's preferred option.
"We have a strong relationship with our joint venturers, strong support from the Papua New Guinea government, and we now look forward to leading development of the LNG project," Jean-Marie Guillermou, Total's exploration and production senior vice president Asia Pacific, said in a statement.
Oil Search owns a 29 percent stake in the rival $19 billion PNG LNG project, which is due to ship its first cargo around July.
Citi analysts estimated the rival projects could save $1 billion to $2 billion by not duplicating LNG infrastructure.
(Reporting by Sonali Paul; Editing by Michael Perry)
Hush your mouth Brews! There's been enough bloodshed. Only makes sense though that partners want resources first proven up (they are doing now), then they will make that decision. Ideally we get both and keep Kavo very very happy and PNG LNG gets built out quickly, which makes PNG Government very happy twice. Seems Ant Deep is key and they are more than excited about that. Me three.
My sentiments exactly.
RE: Revised Deal - ArtM72 - 03-27-2014
'Tree' pid='39956' datel Wrote:
'Putncalls' pid='39938' dateline='<a href="tel:1395806 Wrote:
'Tree' pid='39905' dateline='<a href="tel:1395795 Wrote:
'jft310' pid='39903' dateline='<a href="tel:1395794 Wrote:As I said a 5th grader could figure it out
And our MB 3rd graders had it figured out that IOC would retain ~11%.
Too funny, again.
Rude and untrue statement Tree.
Not rude puts, it's fact
Not untrue puts, it's reality
The one fact that has proved itself through the past months has been no one knew how the sell down would end or how much and for what consideration the PPLs would be farmed out. Only people who claimed they did were wrong, not those who discussed the possibilities.
As for those who suggested the certainty of first gas (or all gas) going to PM, well that doesn't seem very certain at this point. What seems pretty clear is that answer won't be known until the drill bits report their findings.
I liked the statement IOC's gas is no longer stranded about as much as I liked the reference to two LNG projects about as much as I liked the reference to no farm outs and the "focus towards the most efficient monetization".
We've got a brand new box of chocolates all paid for and a nice 36.5% annuity that will be starting up in maybe four years. Let's just enjoy the day.
RE: Revised Deal - jft310 - 03-27-2014
Based on today's call it's an economic decision. Thst means discounted cash flow models. There is a huge difference in 15 percent ownership and 25-30 percent ownership. Even if 2 years earlier with Exxon . I think for it to be Exxon they need to give up a chunk of ownership in the 25 percent range. Will they?? Will their be pressure??time pressure?.pricing pressure. Finding more gas makes the process a lot easier. Heck do both.
RE: Revised Deal - Getitrt2 - 03-27-2014
As I've been saying for some time, I expect IOC and/or Total to eventually do both, but probably not from just PRL 15, as Hession has stated. One of main headings at beginning of news release: "Total acquires 40.1% gross interest and brings its global expertise to developing PNG's second LNG project." Total stated, "We have ... strong support from the PNG Government, and we now look forward to leading the development of the LNG project." There is little doubt that the current intent and plan of IOC and Total is to build a second separate LNG project based on PRL 15. They are not going to give up any significant future profits to Exxon, and IOC thinks they will have other gas to sell to Exxon if Exxon is willing to pay a fair price, and I think the price is going up. So much for a conspiracy against IOC and/or Total. The Citi analyst has been wrong about all this before and probably will be wrong some more, as I or anyone could be in the future. However, there is also a limit to how much PNG LNG can be expanded, for which OSH still hopes to use some of its sources, as OSH stated in its recent presentation; and there will not be too much infrastructure or duplication if both plants end up getting expanded with the gas from all the potential future sources of both IOC and OSH, probably moreso from IOC. That is best in the long run for PNG as well as IOC and Total. Of course, a lot of the details and timing of all this will be determined by the drill bits, and I give IOC the advantage in that. Exxon and Total are likely to continue to compete, but so far Total is winning, along with its PARTNER, IOC! All IMHO.
RE: Revised Deal - Getitrt2 - 03-27-2014
'Palm' pid='40015' datel Wrote:
'Brew Swillis' pid='40014' datel Wrote:
'Palm' pid='39909' datel Wrote:"Joint venturers share objectives with PNG Government to monetise gas as quickly as possible." “The agreement enabled InterOil to maintain a material interest in PRL 15, which covers one of Asia’s largest gas discoveries of the past 20 years. The agreement clears the way for co-operative joint venturers, who all share the Government’s wish to monetise Elk- Antelope as quickly as possible, through the fast-growing Asian market. InterOil now has a solid partnership where Total can use its considerable LNG expertise to develop Papua New Guinea’s second LNG project.” Obviously shows they are open to working with the government on both expansion and a standalone as we have been saying. They will all be working together to determine what "as quickly as possible end up meaning."
More color.
http://www.reuters.com/article/2014/03/26/papua-total-interoil-idUSL4N0MN1N920140326
Total seals deal for smaller stake in Papua New Guinea bloc
MELBOURNE, March 26 (Reuters) - Total has agreed to buy a 40 percent stake in Papua New Guinea's largest undeveloped gas field from InterOil Corp, in a revised deal announced on Wednesday, giving the French oil giant a smaller stake than first planned.
InterOil estimated it could receive between $1.62 billion and $3.5 billion all together from Total, depending on how large a reserve of gas is found in the fields.
The final stakes in the deal, which was first announced in December, were changed to reflect the acquisition by Oil Search of a 22.8 percent interest in the Elk and Antelope fields earlier this month.
Total will make an initial payment of $401 million for its 40.1 percent stake, down from a 61.3 percent stake.
A further $138 million will be due in two instalments when a final investment decision is made for an Elk-Antelope liquefied natural gas project and a first cargo is exported. Additional payments will be due based on the volume of gas discovered in the license area.
Once the reserves are certified, the project partners will have to decide whether to build a standalone LNG project, which Total and InterOil favour, or use the Elk and Antelope gas for an expansion of ExxonMobil's PNG LNG project, likely to be Oil Search's preferred option.
"We have a strong relationship with our joint venturers, strong support from the Papua New Guinea government, and we now look forward to leading development of the LNG project," Jean-Marie Guillermou, Total's exploration and production senior vice president Asia Pacific, said in a statement.
Oil Search owns a 29 percent stake in the rival $19 billion PNG LNG project, which is due to ship its first cargo around July.
Citi analysts estimated the rival projects could save $1 billion to $2 billion by not duplicating LNG infrastructure.
(Reporting by Sonali Paul; Editing by Michael Perry)
Hush your mouth Brews! There's been enough bloodshed. Only makes sense though that partners want resources first proven up (they are doing now), then they will make that decision. Ideally we get both and keep Kavo very very happy and PNG LNG gets built out quickly, which makes PNG Government very happy twice. Seems Ant Deep is key and they are more than excited about that. Me three.
Me four, Palm, on Antelope Deep! Great point. One of the things that made the greatest impression on me about the call was how excited Hession seems to be about that. If I remember correctly, he actually said he thinks Antelope Deep has the potential to be another Antelope!! I can hardly even imagine how significant that would be if that is the case AND it's in communication with Antelope!!! I don't think even that, however, would change what I've said below. I really hope they accelerate Antelope appraisal and exploration to the maximum extent possible. I don't know why Total wouldn't put another rig in there if they could properly define another target before completing Antelope 4. I wonder if that needs to be done sequentially, and whether Pet has any thoughts on that.
RE: Revised Deal - Palm - 03-27-2014
'Getitrt2' pid='40067' datel Wrote:
'Palm' pid='40015' datel Wrote:
'Brew Swillis' pid='40014' datel Wrote:
'Palm' pid='39909' datel Wrote:"Joint venturers share objectives with PNG Government to monetise gas as quickly as possible." “The agreement enabled InterOil to maintain a material interest in PRL 15, which covers one of Asia’s largest gas discoveries of the past 20 years. The agreement clears the way for co-operative joint venturers, who all share the Government’s wish to monetise Elk- Antelope as quickly as possible, through the fast-growing Asian market. InterOil now has a solid partnership where Total can use its considerable LNG expertise to develop Papua New Guinea’s second LNG project.” Obviously shows they are open to working with the government on both expansion and a standalone as we have been saying. They will all be working together to determine what "as quickly as possible end up meaning."
More color.
http://www.reuters.com/article/2014/03/26/papua-total-interoil-idUSL4N0MN1N920140326
Total seals deal for smaller stake in Papua New Guinea bloc
MELBOURNE, March 26 (Reuters) - Total has agreed to buy a 40 percent stake in Papua New Guinea's largest undeveloped gas field from InterOil Corp, in a revised deal announced on Wednesday, giving the French oil giant a smaller stake than first planned.
InterOil estimated it could receive between $1.62 billion and $3.5 billion all together from Total, depending on how large a reserve of gas is found in the fields.
The final stakes in the deal, which was first announced in December, were changed to reflect the acquisition by Oil Search of a 22.8 percent interest in the Elk and Antelope fields earlier this month.
Total will make an initial payment of $401 million for its 40.1 percent stake, down from a 61.3 percent stake.
A further $138 million will be due in two instalments when a final investment decision is made for an Elk-Antelope liquefied natural gas project and a first cargo is exported. Additional payments will be due based on the volume of gas discovered in the license area.
Once the reserves are certified, the project partners will have to decide whether to build a standalone LNG project, which Total and InterOil favour, or use the Elk and Antelope gas for an expansion of ExxonMobil's PNG LNG project, likely to be Oil Search's preferred option.
"We have a strong relationship with our joint venturers, strong support from the Papua New Guinea government, and we now look forward to leading development of the LNG project," Jean-Marie Guillermou, Total's exploration and production senior vice president Asia Pacific, said in a statement.
Oil Search owns a 29 percent stake in the rival $19 billion PNG LNG project, which is due to ship its first cargo around July.
Citi analysts estimated the rival projects could save $1 billion to $2 billion by not duplicating LNG infrastructure.
(Reporting by Sonali Paul; Editing by Michael Perry)
Hush your mouth Brews! There's been enough bloodshed. Only makes sense though that partners want resources first proven up (they are doing now), then they will make that decision. Ideally we get both and keep Kavo very very happy and PNG LNG gets built out quickly, which makes PNG Government very happy twice. Seems Ant Deep is key and they are more than excited about that. Me three.
Me four, Palm, on Antelope Deep! Great point. One of the things that made the greatest impression on me about the call was how excited Hession seems to be about that. If I remember correctly, he actually said he thinks Antelope Deep has the potential to be another Antelope!! I can hardly even imagine how significant that would be if that is the case AND it's in communication with Antelope!!! I don't think even that, however, would change what I've said below. I really hope they accelerate Antelope appraisal and exploration to the maximum extent possible. I don't know why Total wouldn't put another rig in there if they could properly define another target before completing Antelope 4. I wonder if that needs to be done sequentially, and whether Pet has any thoughts on that.
Peace
RE: Revised Deal - ArtM72 - 03-27-2014
'jft310' pid='40025' datel Wrote:Based on today's call it's an economic decision. Thst means discounted cash flow models. There is a huge difference in 15 percent ownership and 25-30 percent ownership. Even if 2 years earlier with Exxon . I think for it to be Exxon they need to give up a chunk of ownership in the 25 percent range. Will they?? Will their be pressure??time pressure?.pricing pressure. Finding more gas makes the process a lot easier. Heck do both.
I really like when I can agree with you. Let's also not forget that economic theory extends well beyond dollars and cents. The term "economic rationalist" can also consider a wide range of other human behaviors. One of the elements of today's announcement and CC places the determination of a second LNG plant squarely on the table. This puts Gulf Province on notice, but more to your point, puts Exxon on notice. Once the competitive tension for IOCTOTOSH's gas is established between the two plants the owners of that gas will prosper along with the communities that support its processing and delivery.
RE: Revised Deal - petrengr1 - 03-27-2014
'Getitrt2' pid='40067' datel Wrote:
'Palm' pid='40015' datel Wrote:
'Brew Swillis' pid='40014' datel Wrote:
'Palm' pid='39909' datel Wrote:"Joint venturers share objectives with PNG Government to monetise gas as quickly as possible." “The agreement enabled InterOil to maintain a material interest in PRL 15, which covers one of Asia’s largest gas discoveries of the past 20 years. The agreement clears the way for co-operative joint venturers, who all share the Government’s wish to monetise Elk- Antelope as quickly as possible, through the fast-growing Asian market. InterOil now has a solid partnership where Total can use its considerable LNG expertise to develop Papua New Guinea’s second LNG project.” Obviously shows they are open to working with the government on both expansion and a standalone as we have been saying. They will all be working together to determine what "as quickly as possible end up meaning."
More color.
http://www.reuters.com/article/2014/03/26/papua-total-interoil-idUSL4N0MN1N920140326
Total seals deal for smaller stake in Papua New Guinea bloc
MELBOURNE, March 26 (Reuters) - Total has agreed to buy a 40 percent stake in Papua New Guinea's largest undeveloped gas field from InterOil Corp, in a revised deal announced on Wednesday, giving the French oil giant a smaller stake than first planned.
InterOil estimated it could receive between $1.62 billion and $3.5 billion all together from Total, depending on how large a reserve of gas is found in the fields.
The final stakes in the deal, which was first announced in December, were changed to reflect the acquisition by Oil Search of a 22.8 percent interest in the Elk and Antelope fields earlier this month.
Total will make an initial payment of $401 million for its 40.1 percent stake, down from a 61.3 percent stake.
A further $138 million will be due in two instalments when a final investment decision is made for an Elk-Antelope liquefied natural gas project and a first cargo is exported. Additional payments will be due based on the volume of gas discovered in the license area.
Once the reserves are certified, the project partners will have to decide whether to build a standalone LNG project, which Total and InterOil favour, or use the Elk and Antelope gas for an expansion of ExxonMobil's PNG LNG project, likely to be Oil Search's preferred option.
"We have a strong relationship with our joint venturers, strong support from the Papua New Guinea government, and we now look forward to leading development of the LNG project," Jean-Marie Guillermou, Total's exploration and production senior vice president Asia Pacific, said in a statement.
Oil Search owns a 29 percent stake in the rival $19 billion PNG LNG project, which is due to ship its first cargo around July.
Citi analysts estimated the rival projects could save $1 billion to $2 billion by not duplicating LNG infrastructure.
(Reporting by Sonali Paul; Editing by Michael Perry)
Hush your mouth Brews! There's been enough bloodshed. Only makes sense though that partners want resources first proven up (they are doing now), then they will make that decision. Ideally we get both and keep Kavo very very happy and PNG LNG gets built out quickly, which makes PNG Government very happy twice. Seems Ant Deep is key and they are more than excited about that. Me three.
Me four, Palm, on Antelope Deep! Great point. One of the things that made the greatest impression on me about the call was how excited Hession seems to be about that. If I remember correctly, he actually said he thinks Antelope Deep has the potential to be another Antelope!! I can hardly even imagine how significant that would be if that is the case AND it's in communication with Antelope!!! I don't think even that, however, would change what I've said below. I really hope they accelerate Antelope appraisal and exploration to the maximum extent possible. I don't know why Total wouldn't put another rig in there if they could properly define another target before completing Antelope 4. I wonder if that needs to be done sequentially, and whether Pet has any thoughts on that.
I think it would be beneficial to drill the appraisal wells as quickly as possible since that is where the big money is. We need to get the wells that will be used in the re-certification process drilled as quickly as possible so that we can be paid for the resources. Of course that is also needed so that we can reach FID on the LNG plant sooner and get started on the construction. We will need a PDL before construction begins. That will mean a substantial payment to IOC from the Government. IOC will be the operator in the field i.e. they will do all of the drilling. I think Total will take over at the well head and build the pipelines, CSP and LNG plant.
The rig that we have contracted from Oil Search will drill Antelope-4. Bobcat should be completed by about the middle of June. I would not be surprised to see Rig-2 come back to Antelope to drill a couple of wells, maybe one appraisal well and then the exploration well at Antelope Deep. The Oil Search rig should drill the other appraisal well. Hession said we would be drilling at Triceratops. Maybe the rig from Raptor will move to Triceratops since both Raptor and Triceratops involve PRE. I think if Wahoo is successful they may use Rig-3 to drill other wells at Wahoo since Rig-3 is no longer considered to be heli-portable.
From the way they talk about Antelope Deep I think it is in a deeper fault block and will not be in communication with Antelope
RE: Revised Deal - sageo - 03-27-2014
Pet- Appreciate this latest input! If Antelope Deep is not in communication with Antelope, then the equation changes again,no? ( no maximum pain, all maximum gain).More $$s from Total I would think. GLTY.
RE: Revised Deal - jft310 - 03-27-2014
PET-I am getting older but I think I remember Hession stating they hoped Antelope Deep communicated with Antelope on Dec 6th and he was excited it appeared because if they found gas and it communicated then they would get paid handsomely for it.
But I can not read seismic nor interpret fault lines. Is this a to be determined situation in your eyes??Or are you pretty sure they may not communicate.