Duma adds a twist

[admin]

Duma always adds a twist. It's what he does..

[jiminsidz]

Also interesting that EWC has spiked quickly to 52 week highs over the past 2 weeks.

[jft310]

EWC math for IOC investors is off the wall. For each 1 million tons of LNG the net is $800 million, times 60% IOC ownership or almost $500 million per year in cash flow for IOC shareholders per million tons. Hard numbers to not want for us. Will the PNG govt allow?? Seems much more possible with Hession and the former Chevron guys now in board. Henry,Conrad Kerr etc are all still on board. At least one unit is built and paid for at Indo. We wait. Add in this guy Chandler and odds seem to favor EWC. They are FID ready.

[Palm]

The interesting thing in all of this would be to know what rights Exxon was granted as operator under the PNG LNG project as far as obtaining necessary gas within PNG. Exxon is too big, too experienced to not have known the risks of developing a first project in a developing country. They've been down that road before. Governments want and need development to happen and will lure investors with promises of vast resources, tax advantages (hilidays), etc. Polye said as much in his interview with EMTV. With PNG LNG being approved first, might that Agreement have included a stipulation that if OSH is not able to locate enough gas to source planned expansion that Exxon has the right to pursue other sources? I can't believe that it doesn't. Of course that's the reason that any expansion must be first approved by the government, but the National Government legally owns the resources of the country in PNG. Not the LOs, not the Provinces.

I would not be at all surprised that the very reason Exxon is pursuing these negotiations with IOC is because they know they have the right to do so (obviously, since O'Neill and Parliament have reacted favorably). So in the end Exxon will have a way to get this done right; and they will likely "demand" that PNG live up to it's agreement(s). So in the end will gas be piped to PNG LNG for at least a 3rd train, AND an LNG plant that at least meets the new minimum initial output be built in Gulf? I'm Betting it will.