Shmori, here is some history for you. Shell and other majors knew the PNG had huge hydro-carbon deposits. They owned 50 year leases and did NOTHING with them. They were to busy developing the N Sea, M/E, Alaska parts of Africa and other regions. IOC in the mid 90s came in and built a refinery. They also purchased 60% of all the retail stores in the PNG from Shell and BP. IOC has always treated the locals and the Govt with respect and in return received respect. As crazy as this appears when the 50 year leases were about to expire IOC was approached by the PNG Govt and asked if they were interested. The majors had no idea that the PNG Govt would go in a different direction. At midnight, the day of termination of the leases, with IOC paying the over time, the leases were granted to IOC. The PNG Govt was tired of having their assets being shelved until those majors felt it was worth ther while. The only condition was that IOC was to explore and develop the property. IOC agreed. 8 million acres of some of the most prolific energy fields in the world became IOCs. You see the PNG Govt trusts IOC, the majors treated the PNG as a chattel did nothing for the country. The shorts completely under estimated the relationship IOC has with the Govt. Go there. You will understand that the Govt considers IOC a local company. There was never really any doubt that IOC would get the approval of the Govt. There is more detail of course but the shorts have NEVER understood IOC. They have shorted a stock that does not exist
