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O'Neill Official PR on Gulf LNG 50/50 Approval - Tree - 11-16-2012
http://www.scribd.com/doc/113416961/PNG-Government-approves-50-50-Gulf-LNG-project
From a Liam Fox twitter feed. Jake posted it from his Twitter buddy in another thread.
Looks to me something big is brewing and earlier Liam had mentioned a figure of $3 Billion for the increased stake. I have my hunch of what's going on. Put your theory out you Group Thinkers and 'let's connect the dots'.
Hint: It is not a negative for ennerOle.
RE: O'Neill Official PR on Gulf LNG 50/50 Approval - Putncalls - 11-16-2012
Where does PNG get 3 billion $? What do they do with the NG? They get a deal and make a profit selling to XOM?
RE: O'Neill Official PR on Gulf LNG 50/50 Approval - Palm - 11-16-2012
Post Courier has picked it up and basically regurgitated the PR:
Cabinet approves Gulf LNG Project
PRIME Minister Peter O’Neill has announced the NEC approval of the 50-50 Gulf LNG project with the State acquiring an additional equity interest in the Elk-Antelope gas fields on terms to be negotiated with InterOil Corporation over and above its 22.5 percent entitlement.
Mr O’Neill said in doing so, Cabinet had also approved the conditional withdrawal of the Notice of Intent to Terminate the Project Agreement issued to InterOil by the State subject to the parties agreeing to certain conditions, including developing saleable gas on 50-50 basis. He said other terms that needed to be discussed and agreed with InterOil Corporation (IOC) were that; an internationally recognised and experienced operator shall operate the upstream facilities, the fiscal incentives in the current Project Agreement amended accordingly, and the terms in which the State would acquire the additional 27.5 per cent equity in the gas fields would have to be mutually agreed.
Mr O’Neill said Cabinet had approved the establishment of the bureaucratic negotiation team to be headed by the Secretary for Petroleum and Energy and comprising departments of Treasury, Justice and State nominee Petromin, to negotiate the terms of the 50-50 proposal and report to Cabinet, through the Ministerial Gas Committee by November 30, 2012.He said given the importance of the project, Cabinet approved the establishment of the Ministerial Gas Committee headed by Minister for Petroleum and Energy and comprising key economic Ministers, including Minister for Treasury, Minister for Trade and Industry, Minister for Planning, Minister for labour and Employment and Minister for Environment and Conservation to fast-track the commercialisation of the country’s second LNG.
The Prime Minister said Cabinet also approved that the project may be commercialised equally and simultaneously on a 50-50 basis between the State and InterOil based on the available saleable gas, using two separate processing facilities.
Cabinet formally endorsed that InterOil may locate its processing facility in the Gulf Province."
http://www.postcourier.com.pg/20121116/news05.htm
RE: O'Neill Official PR on Gulf LNG 50/50 Approval - TxPm - 11-16-2012
Please re-read the twitter feed. Liam Fox didn't mention $3Bil PNG Industry News mentioned the $3Bil. Also there have some more discussions on Liam Fox's twitter over the project but very little details....a lot of talk surrounding whether this 50/50 is just the option to buy up to 50% in the future but that sure isn't how I'm reading then notice
RE: O'Neill Official PR on Gulf LNG 50/50 Approval - Hoosier1 - 11-16-2012
Why wouldn't management address this in the cc? this is material.
h1
RE: O'Neill Official PR on Gulf LNG 50/50 Approval - Petro2458 - 11-16-2012
Now I'm happy...good letter from the PM. Best part is the urgency and Nov 30 milestone.. As the shorts can only argue the 50/50 premise as a strong arm approach for a few more days...the state will most certainly agree to buy the gas at a competitive price... And it Sure is an easier transaction. Adds further clarity for the bidders come dec1. The uncertainty surrounding this story is fading fast and even the shorts will have to admit defeat soon.
This should also pressure Shell and co. to purchase IOC -- seems to me they could wait for the sell down but they then would have a lower net entitlement... Reserves are a key driver... Let's watch and see.
RE: O'Neill Official PR on Gulf LNG 50/50 Approval - Libtardius Maximus - 11-16-2012
Group think, that's funny Tree. PNG gets 50/50 with 22.5 in kind, the 27.5 comes from a deal between Petromin, Shell and IOC at commercial prices. Phil said PNG was getting 22.5, not 50%.
RE: O'Neill Official PR on Gulf LNG 50/50 Approval - Palm - 11-16-2012
I agree this is good for all. For the gov to want 50% of EA tells me they strongly believe what Phil said on the CC; all believe they have enough gas for 8mmptas. This is right now the least expensive gas field for the gov to get what they need. It's a huge field and assures what they need is there. By going for 50% they will get a competitive price (I do not think PRE-type pricing is likely since they are taking a much bigger bite and helping de-risk the project; as long as they get the financial backing. Very likely some of that China money will come into play.
To be sure the negotiations go quickly and productively O'Neill and NEC were very wise. Team some of his most trusted supporters with Duma, Petromin and the DPE secretary to be sure games are not played. Then put a tight deadline on hammering things out; Nov 30. O'Neill is a strong supporter of IOC and this project.
We can try and predict all night about operators (I assume the upstream operator means both resource and CSPs?) and whether there will be one or 2 plants. With that possibility of 2 plants it hints IOC is free to choose EWC and the choice of operator will dictate whether its EWC for all or EWC and a large modular /stick for the gov, or a large modular/stick for all. Also by saying IOC may have "its" processing facility in Gulf means gov can be there or they might pipe theirs to XOM's plant or build theirs elsewhere. If the gov chooses elsewhere, I hope they are ready for Kavo to scream bloody murder and stir up the locals. For that reason I would guess all would be in Gulf unless somehow they compensate by pouring major development dollars into Karema.
I also expect EWC will be popping in power plants based on O'Neill's trip to Indon and discussions with their PM.
The interesting thing will be whether they decide together that less than 50% makes the most sense. More fun for the masses.
RE: O'Neill Official PR on Gulf LNG 50/50 Approval - TxPm - 11-16-2012
Hoosier, I agree 100%. Here is the exact quote:
Evan:
Any comments at this time - or is it too premature - on the government’s ability to buy, or option to buy, additional gas? I know it’s been reported a couple of times.
Phil:
It’s been reported, but it’s way too premature. In the meantime, as the prime minister says, hey, get going, and we’ll be establishing commercial terms on what the market is. Then they still have to take their own gas and build power plants and key infrastructure for the country. But we’re trying to be proactive.
So this morning was way to premature yet 10hrs later it's all but official?
RE: O'Neill Official PR on Gulf LNG 50/50 Approval - Palm - 11-16-2012
Other thing is that slide 11 showing the conceptual design for Gulf LNG looks like anticipated 2 plants