IOC/XOM playing a long game - Printable Version

IOC/XOM playing a long game - Printable Version

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IOC/XOM playing a long game - Tree - 08-17-2013

InterOil’s chief executive Michael Hession said the discussions are ongoing, but would not comment on any of the details, although he confirmed they were being conducted on an “exclusive” basis, meaning no other parties are involved.

The focus of the discussions is the acquisition by ExxonMobil of an equity stake in Block PRL-15 which contains the Elk-Antelope gas discoveries operated by InterOil.

ExxonMobil reiterated earlier this month that “major terms have already been agreed (with InterOil) and should negotiations successfully conclude ExxonMobil is proposing that 4.6 trillion cubic feet of the gas resource from the Elk-Antelope field be used to underpin the construction of an additional train at the PNG LNG project site, subject to partner and government agreement”.

The US supermajor did not provide any more details.

Despite market watchers backing a tie-up between ExxonMobil and InterOil, there is a persistent agitation that political forces could still influence the outcome.

Papua New Guinea Prime Minister Peter O’Neill is said to be very keen to maintain the momentum achieved from the PNG LNG project.

However, Petroleum & Energy Minister William Duma has different motivations, and any agreement between ExxonMobil and InterOil will require his approval.

To add to the intrigue, Shell’s name continues to pop up amid speculation that it is considering a counter offer for InterOil’s resources, or a takeover offer.

The Elk-Antelope fields are understood to contain best case contingent resources of 9.45 trillion cubic feet of wet gas.

Hession confirmed that, if a deal with ExxonMobil is completed, InterOil still wants to be involved in developing another LNG project as a “non-operator”.

“I’ve got aspirations to build further LNG facilities on the basis of the existing resource or exploration success that (we) will deliver,” said Hession, who was appointed chief executive last month, replacing Phil Mulacek.

InterOil has no intention of being an LNG operator, and will instead focus on being a LNG non-operator, Hession said.

The various LNG development agreements that were signed under previous chief executive Mulacek with Mitsui, Energy World Corporation and Flex LNG have been cancelled.

“It’s very, very important to us that we’ll be pursuing the upside associated with our (upstream) assets,” said Hession.

Meanwhile, ExxonMobil’s US$19 billion PNG LNG project is powering toward first LNG sales in 2014, with the two-train scheme, 6.9 million tonnes per annum project 90% complete.

RE: IOC/XOM playing a long game - Dmarque - 08-17-2013

'Tree' pid='27377' datel Wrote:

InterOil and ExxonMobil playing a long game

By Russell Searancke Wellington

16 August 2013 00:00 GMT

Negotiations between ExxonMobil and InterOil are ongoing over liquefied natural gas feedstock in Papua New Guinea, with both sides playing their cards close to their chests.

InterOil’s chief executive Michael Hession said the discussions are ongoing, but would not comment on any of the details, although he confirmed they were being conducted on an “exclusive” basis, meaning no other parties are involved.

The focus of the discussions is the acquisition by ExxonMobil of an equity stake in Block PRL-15 which contains the Elk-Antelope gas discoveries operated by InterOil.

ExxonMobil reiterated earlier this month that “major terms have already been agreed (with InterOil) and should negotiations successfully conclude ExxonMobil is proposing that 4.6 trillion cubic feet of the gas resource from the Elk-Antelope field be used to underpin the construction of an additional train at the PNG LNG project site, subject to partner and government agreement”.

The US supermajor did not provide any more details.

Despite market watchers backing a tie-up between ExxonMobil and InterOil, there is a persistent agitation that political forces could still influence the outcome.

Papua New Guinea Prime Minister Peter O’Neill is said to be very keen to maintain the momentum achieved from the PNG LNG project.

However, Petroleum & Energy Minister William Duma has different motivations, and any agreement between ExxonMobil and InterOil will require his approval.

To add to the intrigue, Shell’s name continues to pop up amid speculation that it is considering a counter offer for InterOil’s resources, or a takeover offer.

The Elk-Antelope fields are understood to contain best case contingent resources of 9.45 trillion cubic feet of wet gas.

Hession confirmed that, if a deal with ExxonMobil is completed, InterOil still wants to be involved in developing another LNG project as a “non-operator”.

“I’ve got aspirations to build further LNG facilities on the basis of the existing resource or exploration success that (we) will deliver,” said Hession, who was appointed chief executive last month, replacing Phil Mulacek.

InterOil has no intention of being an LNG operator, and will instead focus on being a LNG non-operator, Hession said.

The various LNG development agreements that were signed under previous chief executive Mulacek with Mitsui, Energy World Corporation and Flex LNG have been cancelled.

“It’s very, very important to us that we’ll be pursuing the upside associated with our (upstream) assets,” said Hession.

Meanwhile, ExxonMobil’s US$19 billion PNG LNG project is powering toward first LNG sales in 2014, with the two-train scheme, 6.9 million tonnes per annum project 90% complete.

Amazing!!!!

CNBC has now picked up and reported the lie.....Exxon and IOC talks resulted in no agreement! Incredible....~!

RE: IOC/XOM playing a long game - ebster123 - 08-17-2013

Of course they did, Cramer is a fraud and so are many more...the SEC and FTC are bogus limp rod organizations. If they had any alls they would stop all of this criminals and allow the markets to operate as they were mean to. Buy, when the legislators are criminals and ties up n all of this as well nothing works as it should. A shame but true...

RE: IOC/XOM playing a long game - Palm - 08-17-2013

"Amazing!!!! CNBC has now picked up and reported the lie.....Exxon and IOC talks resulted in no agreement! Incredible....~!"

IMHO as has been said elsewhere here today, this all plays into a strong indication that for anyone not wanting any of EA to get away, the time to strike is now. We've said that many times. Even though Exxon and IOC have held negotiations close to the vest there will be clear signs when they are ready to consumate any deal. They see the signs more clearly than we do, and I would guess the caution sign just went away and it's time to "Go". Hession said it Tuesday; EA (JUST EA) is the biggest find in Asia in 20 years. There is not one major player in O&G that would not be highly interest in getting their claws into it. And do most anything to get it. Hopes that things could be derailed or that Exxon might somehow walk would of course let someone else come in and negotiate from a position of strength.

But we have from an IOOC big this AM that, "WE are in a very strong position."

The iron is hot.

RE: IOC/XOM playing a long game - jft310 - 08-17-2013

An IPI person heard the following:
IOC in for Exxon train 3 and 4
IOC will get a 30% participation interest in both trains like OSH did.
Exploration upside is 150 % or 27 T's.
Use it or flush your call.

RE: IOC/XOM playing a long game - j4j - 08-17-2013

'jft310' pid='27392' dateline='<a href="tel:1376678 Wrote:An IPI person heard the following: IOC in for Exxon train 3 and 4 IOC will get a 30% participation interest in both trains like OSH did. Exploration upside is 150 % or 27 T's. Use it or flush your call.

has this ipi source in the past been fairly accurate?

RE: IOC/XOM playing a long game - jft310 - 08-17-2013

100% for the short term, but darn IOC changes things. Meant as a confidence builder to the board not an option play.

RE: IOC/XOM playing a long game - ArtM72 - 08-17-2013

Hate to say it but it's hard to believe anybody has much credibility left anymore. I can only imagine what would be being said if PM were still CEO. Sounds to me like the deal has gotten screwed up somehow with the only person capable of closing it being O'Neill.

RE: IOC/XOM playing a long game - j4j - 08-17-2013

'ArtM72' pid='27417' dateline='<a href="tel:1376694 Wrote:

Hate to say it but it's hard to believe anybody has much credibility left anymore. I can only imagine what would be being said if PM were still CEO. Sounds to me like the deal has gotten screwed up somehow with the only person capable of closing it being O'Neill.

One planted Blair Price story makes you feel that way?

RE: IOC/XOM playing a long game - ArtM72 - 08-18-2013

'j4j' pid='27418' dateline='<a href="tel:1376698 Wrote:

'ArtM72' pid='27417' dateline='<a href="tel:1376694 Wrote:

Hate to say it but it's hard to believe anybody has much credibility left anymore. I can only imagine what would be being said if PM were still CEO. Sounds to me like the deal has gotten screwed up somehow with the only person capable of closing it being O'Neill.

One planted Blair Price story makes you feel that way?

Nah. Been hangin for quite some time. I also value my shares, more than most, considerably more than some. The issue of course is timing, not direction or distance.