OSH CEO Botten comments yesterday in 3Q release:

"The period of exclusive negotiations between ExxonMobil and InterOil, regarding the development of PRL 15 containing the Elk/Antelope gas fields, expired in August. InterOil has recommenced a competitive bidding process for a majority share in PRL 15. We are following the sale process closely and are engaged with key players on potential development options for the gas. The Elk/Antelope resource could potentially be a source of gas for LNG expansion or could underpin a new LNG development. We continue to believe that being an owner of core gas and liquids infrastructure in PNG places Oil Search in a strong position, as new developments take place in the country.”

 The OSH analysts don't agree with Botten . Citi cut their price estimate to under $7 for OSH. Further OSH was supposed to find NG for an expansion and they have not done that. At least 2 years away from proving more NG. IOC has NG available today ans Exxon needs that NG. The one in a strong position is IOC one OSH.

Rex speaks for XOM this week I do believe.

Stated Facts:  Translated for those that need concrete-

"The period of exclusive negotiations between ExxonMobil and InterOil, regarding the development of PRL 15 containing the Elk/Antelope gas fields, expired in August.     (Hession re-queued the bid process)

InterOil has recommenced a competitive bidding process for a majority share in PRL 15.  (More bidders than XOM validating  reports of RDS, TOT and recent late arrivals)

We are following the sale process closely and are engaged with key players on potential development options for the gas. (XOM still in the beauty contest)

The Elk/Antelope resource could potentially be a source of gas for LNG expansion or could underpin a new LNG development.  (Competetive tension of 2 schemes leverages bids to IOC's favor)

We continue to believe that being an owner of core gas and liquids infrastructure in PNG places Oil Search in a strong position, as new developments take place in the country."  (PNG LNG Expansion economics are hard to beat, as we've known, means higher bids)

'jft310' pid='30077' datel Wrote:

 The OSH analysts don't agree with Botten . Citi cut their price estimate to under $7 for OSH. Further OSH was supposed to find NG for an expansion and they have not done that. At least 2 years away from proving more NG. IOC has NG available today ans Exxon needs that NG. The one in a strong position is IOC one OSH.

Botten on P'Nyang:

The PRL 3 Joint Venture continued to progress studies for the potential development of the P’nyang gas field, including technical work and the commencement of social mapping.

Confirmed bidding war on PNG for IOC's NG.source CEO of OSH

'Tree' pid='30078' dateline='<a href="tel:1382438 Wrote:

Rex speaks for XOM this week I do believe.

Stated Facts:  Translated for those that need concrete-

"The period of exclusive negotiations between ExxonMobil and InterOil, regarding the development of PRL 15 containing the Elk/Antelope gas fields, expired in August.     (Hession re-queued the bid process)

InterOil has recommenced a competitive bidding process for a majority share in PRL 15.  (More bidders than XOM validating  reports of RDS, TOT and recent late arrivals)

We are following the sale process closely and are engaged with key players on potential development options for the gas. (XOM still in the beauty contest)

The Elk/Antelope resource could potentially be a source of gas for LNG expansion or could underpin a new LNG development.  (Competetive tension of 2 schemes leverages bids to IOC's favor)

We continue to believe that being an owner of core gas and liquids infrastructure in PNG places Oil Search in a strong position, as new developments take place in the country."  (PNG LNG Expansion economics are hard to beat, as we've known, means higher bi

Rex of Exxon speaks Friday this week . Think Calio or Pavel will not ask about IOC??

Oil Search Ltd. Production rising and developments progressing: Morgan Stanley Oct 22,2013

The PNG LNG project

is on target to deliver first gas in

2H 2014. Capex is reaffirmed at US$19bn (gross) for the

project although we note a roll-off in capex as it nears

completion. OSH and partners continue to work on

proving up more gas resources for Train-3. Work at

P’nyang will continue through 2014 in preparation for a

development license application in 2015. Work is also

under way on assessing the extension of the Juha field.

Full report attached in PDF

'jft310' pid='30081' datel Wrote:

'Tree' pid='30078' dateline='<a href="tel:1382438 Wrote:

Rex speaks for XOM this week I do believe.

Stated Facts:  Translated for those that need concrete-

"The period of exclusive negotiations between ExxonMobil and InterOil, regarding the development of PRL 15 containing the Elk/Antelope gas fields, expired in August.     (Hession re-queued the bid process)

InterOil has recommenced a competitive bidding process for a majority share in PRL 15.  (More bidders than XOM validating  reports of RDS, TOT and recent late arrivals)

We are following the sale process closely and are engaged with key players on potential development options for the gas. (XOM still in the beauty contest)

The Elk/Antelope resource could potentially be a source of gas for LNG expansion or could underpin a new LNG development.  (Competetive tension of 2 schemes leverages bids to IOC's favor)

We continue to believe that being an owner of core gas and liquids infrastructure in PNG places Oil Search in a strong position, as new developments take place in the country."  (PNG LNG Expansion economics are hard to beat, as we've known, means higher bi

Rex of Exxon speaks Friday this week . Think Calio or Pavel will not ask about IOC??

'jft310' pid='30081' dateline='<a href="tel:1382439 Wrote:

'Tree' pid='30078' dateline='<a href="tel:1382438 Wrote:

Rex speaks for XOM this week I do believe.

Stated Facts:  Translated for those that need concrete-

"The period of exclusive negotiations between ExxonMobil and InterOil, regarding the development of PRL 15 containing the Elk/Antelope gas fields, expired in August.     (Hession re-queued the bid process)

InterOil has recommenced a competitive bidding process for a majority share in PRL 15.  (More bidders than XOM validating  reports of RDS, TOT and recent late arrivals)

We are following the sale process closely and are engaged with key players on potential development options for the gas. (XOM still in the beauty contest)

The Elk/Antelope resource could potentially be a source of gas for LNG expansion or could underpin a new LNG development.  (Competetive tension of 2 schemes leverages bids to IOC's favor)

We continue to believe that being an owner of core gas and liquids infrastructure in PNG places Oil Search in a strong position, as new developments take place in the country."  (PNG LNG Expansion economics are hard to beat, as we've known, means higher bi

Rex of Exxon speaks Friday this week . Think Calio or Pavel will not ask about IOC??

'geologydude' pid='30083' datel Wrote:

'jft310' pid='30081' datel Wrote:

'Tree' pid='30078' dateline='<a href="tel:1382438 Wrote:

Rex speaks for XOM this week I do believe.

Stated Facts:  Translated for those that need concrete-

"The period of exclusive negotiations between ExxonMobil and InterOil, regarding the development of PRL 15 containing the Elk/Antelope gas fields, expired in August.     (Hession re-queued the bid process)

InterOil has recommenced a competitive bidding process for a majority share in PRL 15.  (More bidders than XOM validating  reports of RDS, TOT and recent late arrivals)

We are following the sale process closely and are engaged with key players on potential development options for the gas. (XOM still in the beauty contest)

The Elk/Antelope resource could potentially be a source of gas for LNG expansion or could underpin a new LNG development.  (Competetive tension of 2 schemes leverages bids to IOC's favor)

We continue to believe that being an owner of core gas and liquids infrastructure in PNG places Oil Search in a strong position, as new developments take place in the country."  (PNG LNG Expansion economics are hard to beat, as we've known, means higher bi

Rex of Exxon speaks Friday this week . Think Calio or Pavel will not ask about IOC??

I am reasonably sure that Exxon has imposed a "gag" order of sorts on IOC and Hession is complying as he knows Exxon could stretch this negotiating process out and weaken IOC and bleed us out.  Yes, we have what Exxon wants, but they have leverage over us as well.  Nobody pushes Exxon around.  Hession will play the game and the deal will get done.  In the mean time we will have to listen in and get tidbits of info from OSH and whatever Exxon choses to divulge.

Thanks all for the info from OSH.  Not to be too much of a contrarian but my read:

XOM might have a gag on IOC but evidently they don't require one for OSH.

There have to be a few people upset IOC couldn't close a deal with XOM.  I wonder if XOM had agreed to acquiring a percentage of PRL15 and IOC had agreed to selling a percentage of E/A.

The statement "[E/A] could underpin a new LNG development" further suggests Gulf Province is demanding an LNG plant despite the superior economics of a PNG LNG expansion.  That "problem" certainly would explain the need for a rebidding process.