Most know I am long time IOC Long. This is the first time in 7 plus years everything has been lined up perfectly.
Let me be more specific:
1) IOC not only wants a deal they need a deal and today have enough proved assets to attract a SM.
2)PNG needs this LNG project for many reasons. Some of which are their economy and basic needs of their citizens. Like electricity.
More important there is a shortage of skilled workers for these LNG projects everywhere including PNG. The Exxon/OSH project is winding down and at its peak they used 5,000 workers. There was no way that 10,000 workers could have been put together. Those PNGers losing their jobs as the Exxon'OSH projects winds down need new jobs. The IOC project simply can pick up many of these workers to use on their project. To focus on E/A monetization the 3 trains will be built one by one. Or these LNG workers will be employed for years and years. Great for PNG and great for IOC and its partner.
3)The buyer of the IOC assets see a tight LNG market with many of the following problems :cost blow outs everywhere and LNG found in remote areas of the world with unstable govts, shipping lane problems.high labor costs,environmental issues etc etc. The IOC project because of the wet NG has the lowest cost project for a buyer to invest in today. Every super major needs a low cost LNG project to balance out the Australian cost blowouts. Think a portfolio of LNG projects in the pocket of a super major some high cost projects and the need for some low cost LNG projects ala IOC.
4)The final user desperatley need to lock in prices that a long term LNG contract offers,think Kogas and Tokyo NG and Sinopec types.Their economies are growing so fast they must have more LNG under contract quickly.
Timing is just perfect and has never been better.