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+--- Thread: Follow the need for money (/showthread.php?tid=4195)
Follow the need for money - Tree - 07-18-2013
Think PNG won't facilitate revenue producing gas projects?
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PNG as PNG LNG Partner:
THE STATE AS CO-VENTURER
The collective equity holdings of the PNG Government and landowners is 19.6 per cent. Such an involvement is made possible by PNG law, which grants the National Government the right to purchase a participating interest not exceeding 22.5% in petroleum projects.53
In securing financing for its equity share in the Project, the PNG Government made an agreement in 2009 to issue an exchange bond facility worth $AU1.68 billion to the Abu Dhabi-based International Petroleum Investment Company (IPIC). The revenue projections mentioned above incorporate the Government’s repayment of this liability. However the 2012 Budget has confirmed that the Government is facing a shortfall in financing its share in the Project, with additional borrowing of $US258.0 million (K561 million) required.54 It was decided under the new O’Neill Government
that this shortfall, plus an additional K339 million for potential contingencies such as exchange rate movements, would be funded via the issuance of K900 million domestic debt securities.55
RE: Follow the need for money - Palm - 07-18-2013
And the "exchange" is PNGs ownership share of OSH. So next March if OSH is not at approx A$8.50, the PNG government must zebra-up the difference. Thus the mention of the possible bond issue. So we can expect OSH to do whatever they feel is necessary to get to that A$8.50 between now and March.
RE: Follow the need for money - davidhmtk - 07-18-2013
'Palm' pid='25874' datel Wrote:And the "exchange" is PNGs ownership share of OSH. So next March if OSH is not at approx A$8.50, the PNG government must zebra-up the difference. Thus the mention of the possible bond issue. So we can expect OSH to do whatever they feel is necessary to get to that A$8.50 between now and March.
One aspect of the government's need for cash is their preference for the Exxon SPA, in which the government will be responsible for financing much less infrastructure, leaving it more cash immediately.
RE: Follow the need for money - ArtM72 - 07-19-2013
'davidhmtk' pid='25879' datel Wrote:One aspect of the government's need for cash is their preference for the Exxon SPA, in which the government will be responsible for financing much less infrastructure, leaving it more cash immediately.
Very good point. Hadn't seen that one before. Might be one of the more telling.