Let’s revisit the Reuters article from July 2012 when it was revealed that Shell and IOC had been in talks.

It seems, in light of recent “pronouncements” by sundry punters, that Shell has been in the game all along for Farm Ins on the other IOC exploration licenses and not a stake in the E/ A project.

Methinks we didn’t parse the article correctly back then!

http://www.reuters.com/article/2012/07/26/interoil-shell-deal-idUSL4E8IQ79420120726

UPDATE 1-Shell says in talks to buy into InterOil's PNG assets

Thu Jul 26, 2012 3:31pm EDT

July 26 (Reuters) - Royal Dutch Shell Plc said it is in talks to buy into liquefied natural gas producer InterOil Corp's Papua New Guinea exploration licenses and LNG terminal, sending InterOil shares up 12 percent.

"In Papua New Guinea we have been in discussion with various parties in the country," Shell CFO Simon Henry said in a transcript provided by the company.

"We have been speaking with InterOil over quite some period of time," he added.

InterOil declined comment on the discussions. Shares of InterOil were up $9.05 at $84.5 Thursday afternoon on the New York Stock Exchange.

In Papua New Guinea, InterOil has petroleum licenses covering about 3.9 million acres.

InterOil, which plans to build a 9 million metric ton a year LNG terminal in Papua New Guinea at a cost of $6 billion, wants to sell a 25 percent stake in the project.

"Yes, it is a country that is of interest but ... it is just one of the possible LNG projects that we are looking at," Henry said.

Shell has much at stake in the LNG market, hence its strong desire to get involved in potential new supplies through deals.

Tight supply and high demand has pushed LNG prices in Asia up to four-year highs earlier this year, prompting major oil and gas companies to hunt for LNG assets.

Dow Jones reported earlier that Shell Chief Executive Peter Voser skirted a question on whether Shell was preparing a takeover bid for the Houston-based InterOil.

"It's an interesting play there," said Voser. "We have talked to the government. We are looking at it."

Shell abandoned a bid for Cove Energy Plc, earlier this month. Shell gave no reason for withdrawing, but a source familiar with the bid process said it did not want to overpay.