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In control, 75.6% or 22.8%? - Printable Version

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In control, 75.6% or 22.8%? - Tree - 03-21-2014


IF Gov't is nuetral, Botten cannot steer PRL15 gas to PNG LNG whilst ennerOle own's 75.6% to OSH's 22.8%.  Yet, there is continued talk of doing that.  Maybe the Gov't isn't nuetral or just maybe...........



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Oil Search busy in PNG


By Russell Searancke

 21 March 2014 00:00 GMT

Oil Search has completed its US$900 million acquisition of Pacific LNG Group’s equity interest in the Elk-Antelope gas complex in Papua New Guinea.

Oil Search now holds a 22.8% interest in Block PRL 15, which contains the two onshore fields.

Oil Search estimates that gross Elk-Antelope proven and probable contingent resources are 5.3 trillion cubic feet of raw gas, including 75 million barrels of associated liquids.

Peter Botten, Oil Search’s managing director, said: “Oil Search’s entry into the PRL 15 joint venture provides us with the opportunity to play a key role in determining the optimal commercialisation route for the Elk-Antelope resource, which is the largest undeveloped gas resource in Papua New Guinea and complementary to our existing asset base.”

The other interest holders in PRL 15 are InterOil on 75.6% and indirect participation interests 1.5%, while Total has a provisional farm-in agreement with InterOil.



RE: In control, 75.6% or 22.8%? - Palm - 03-21-2014

The tail can't wag the dog can it? Especially when IOC owns so much and Total is part of that remaining IPI Interest. Or does the owner of that dog have a big say in how that dog is raised.

RE: In control, 75.6% or 22.8%? - Tree - 03-21-2014

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RE: In control, 75.6% or 22.8%? - Palm - 03-21-2014

To confirm that OSH put the purchase of Pac LNG interests on turbo a PNG business publication had this to say on February 14th where concern was raised about them buying into PRL 15:

"The Independent Consumer and Competition Commission (ICCC) has expressed concern that there may be significant competition issues with Oil Search (OSH) proposal to acquire a 19.3% stake in PRL 15 – the Elk and Antelope gas field development project from Total SA. OSH also has a 29% interest in the PNG LNG project. ICCC was concerned that this proposed involvement by OSH in PRL 15 may substantially lessen competition."

So it seems right in the middle of negotiating with Total to be that 19.3% strategic partner Total mentioned in their original deal PR, they switched gears and in 13 days made the deal with Pac LNG.  Maybe Total/IOC were saying that OSH would have to buy in on the exact same terms as Total including the proven resource escalators and they didn't want that much risk.  They sure maneuvered quickly.

So OSH was indeed the strategic partner targeted, but OSH moved the target a bit.