From Yahoo:
There's a big game and IOC is hosting it. Several big players have already bought in. There is one player, China who wants another seat but IOC has said that they have all the seats sold. IOC will be selling the majority of E/A mostly to Japan and some to Korea.China is looking to buy all the LNG it can. The PNG is located in the neighborhood, has enough clean LNG to last several generations. So what does China do? They cut a deal with the PNG Govt. Here is several billion dollars. Push IOC to sell you 50% of E/A.. Settle for 40%. We will buy all you can supply..Oh, the PNG Govt will pay IOC the going rate for the asset. Shorts confuse local corruption with obeying Commonwealth laws which have teeth in the order of aid and other necessary things that the PNG needs from their Commonwealth brothers.Not to mention that not following the law is simply stupid and bad for PNG business.I don't think this is bad for IOC.The money simply comes from a different source. Maybe even better since what happens to IOC now has a more profound effect on the PNG. I don't know what effect this will have on the PPS but I think this is a positive not a negative. Many, many layers to the IOC onion. It takes patience and understanding. The boys know what their doing.
