Does this mean Shell didn't win the bid? Or Oil Search wants the PPS lower?

http://www.thenational.com.pg/?q=node/46491

'davidhmtk' pid='18459' dateline='<a href="tel:1362701 Wrote:

Does this mean Shell didn't win the bid? Or Oil Search wants the PPS lower?

http://www.thenational.com.pg/?q=node/46491

What Duma says is factually correct.  But we know bids are in and bidders have been per-approved.  I am sure O'Neil will be the  first call the BoD makes.  Duma cannot stop a deal with a SM at this point.  If the stock finishes up tomorrow then it's game over for the shorts.

'davidhmtk' pid='18459' datel Wrote:

Does this mean Shell didn't win the bid? Or Oil Search wants the PPS lower?

http://www.thenational.com.pg/?q=node/46491

No byline? Who wrote it? Inquiring minds want to know.

[quote='jft310' pid='18466' dateline='1362704064'] pickboone take There's an interesting article in the PNG National this evening in which Duma indicates that the 2009 project agreement is still effective and that the "50-50 proposal" with a 3.8 mtpa single train project is conditional upon certain requirements being fulfilled. This conditional approval is excatly as InterOil has conveyed it - as everyone knows and as the company has explicitly acknowledged, the company needs to finalize a project agreement with the government after selecting a partner this month, but NEC approval has been granted. The irony is that this is a huge positive from a market perspective... the "fallback" is the 2009 project agreement, which comprises 2 trains, a world class operator and no further increase in the government's stake. It sounds like as long as InterOil selects the right partner, it can pursue a larger 2 train plant based on Duma's comments, so IOC's flexibility in determining project structure is much greater than the market was led to believe post NEC approval when the stock tanked. Maybe it will be a 2 train plant after all... Either way, it doesn't seem as if the government has any specific plans in place to increase its stake in the project. What's most amazing about this is that in previous instances, Duma said that IOC didn't have enough gas for a 2 train facility. Now, with a good relationship in place and Antelope-3 having been drilled, a 2 train facility seems acceptable and maybe even preferable to Duma. It makes sense... more trains early bring more revenue to PNG. I think this is actually very good news, and there doesn't seem to be anything hostile or unexpected in Duma's comments [/quot

Excellent catch by pickboone on the 2009 PA.  Very interesting.  Let's just get it done this weekend  and move on to the next phase of IOC's life.

So what I think may be going on is that O'Neill charged these guys with getting things negotiated. The "beyond our control" comments means they can't fund it themselves (the 50-50 pony up at "commercial rates" and can't secure the funding elsewhere right now. I also think that it is IOC who finally said that enough time has passed for that option to be finalized and stated that Feb 28th was the deadline for all bids (possibly including 50-50 options which would be non-conforming bids possibly). The government (mainly Duma I think) has wanted more of these projects as far as ownership. IOC said OK, but we can only wait so long and your amount above 22.5% must be at commercial rates. PNG has been trying, but time really has been short for them to do that. Both sides have been working hard, but it's decision time and PNG may have to do the 50-50 on the next project.

'davidhmtk' pid='18459' datel Wrote:

Does this mean Shell didn't win the bid? Or Oil Search wants the PPS lower?

http://www.thenational.com.pg/?q=node/46491

They have done it again. It;s not a nice picture for FRI.

I'll go with Palm on this.  If bids weren't in and the BOD was not meeting I would agree on the here we go again.  I think it is different at this juncture.  Tomorrow is just one day. Keep the faith.