IT'S BEEN 18 DAYS!!!!!!!!!!!!

[Tree]

GTDDASAFPNME!!

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InterOil mulls over offers made by major players for PNG resources

By Russell Searancke Wellington

 27 September 2013

InterOil is continuing to evaluate offers from ExxonMobil and other liquefied natural gas majors vying for the former’s gas resources in Papua New Guinea.

InterOil and ExxonMobil have been in negotiations for four months, and have already agreed major terms for ExxonMobil to buy 4.6 trillion cubic feet of gas from InterOil’s Elk-Antelope field, to be used as feedstock for an additional train at ExxonMobil’s PNG LNG project.

However, the end of an exclusivity period opened the affair to other players, and it is understood at least two other parties — Shell and Total — have submitted separate offers for Interoil’s assets.

InterOil is potentially looking at a multi-billion dollar pay day and, according to sources, the Canadian independent is taking time to finalise any deal or deals.

Some sources said it is expected that a final agreement with ExxonMobil will materialise, while others believe the length of time already taken is not a good sign.

A political force is also weighing on the negotiations, with PNG Prime Minister Peter O’Neill keen for continued economic expansion.

However, Petroleum & Energy Minister William Duma is said not to be keen on Exxon-Mobil, and that he would prefer Shell to steer a new LNG project.

O’Neill said earlier this month that “our challenge is to work with gas sector investors and developers to bring new projects to the development stage as soon as possible”.

Any deal between InterOil and ExxonMobil must be approved by Duma, and sources said O’Neill is pressuring Duma not to interfere with an InterOil-ExxonMobil deal.

Shell is said to be keen to operate either a new floating LNG project in PNG or an onshore scheme in Western Province near the Elk-Antelope fields.

InterOil said earlier this month that — separate to the Exxon-Mobil situation — it wants to part-own of a new LNG project through the monetisation of its remaining resources at Elk-Antelope and the Triceratops find.

Sources said that, if ExxonMobil does close a deal with InterOil, it will be interesting to see Shell’s reaction in terms of whether it would contemplate a full takeover of the Canadian company.

If ExxonMobil is successful, it looks likely that Elk-Antelope will underpin the third train at PNG LNG, following revelations by project co-owner Oil Search that resources such as P’nyang and Juha North and the Hides expansion are still two years from being ready for a final investment decision.

[Putncalls]

Duma suck!!!!!!!!!!!!!!!!!!

[Palm]

Puts, your comments of late are to say the least, interesting.

[Putncalls]

It appears from this article that Duma is in Shell's pocket and the PM can't control him. I wonder if this is an IOC/XOM problem.

[ltinvest]

What's the saying?....... "calm before the storm." It may be quiet here but intensive negotiations continue.

1. Exxon (no tolling agreement.....IOC interest in PNG LNG)
2. Shell ("floating LNG project in PNG or an onshore scheme")
2. Exxon & Shell

[trans]

Itinvest, would you be so kind as to give us your idea on how long it should reasonably expect to reach conclusions on the present items you state above?

[ebster123]

What's the saying?....... "calm before the storm." It may be quiet here but intensive negotiations continue. 1. Exxon (no tolling agreement.....IOC interest in PNG LNG) 2. Shell ("floating LNG project in PNG or an onshore scheme" 2. Exxon & Shell

Itinvest, with all due respect, there have so many calms before the proverbial storms I have lost track of which is which and when they occur....except it is way to often and underprofitable.  I look forward to GTFDD.  Hemi's comments from last night were the best I have heard for quite some time.