Evan Calio Conference Call; IOC NYC 9/21

[Getitrt2]

We're talking about a merger and not an acquisition. A bit of a difference. But in the end the synergies of the merged companies would help alleviate cash flow issues of both. IOC needs current and medium-term cash flow and OSH needs more LT resources to lop on top of what oil and LNG they have now. It also solves a few issues for the PNG govt. The combined market cap of OSH and IOC would be $13-$15 billion or so. There would be no "bath" for either side.

Agree on the advantages, but merger or acquisition, it comes down to the share translation.  I think IOC would have to get more than one for one to get a fair share of the resources, etc.

[Tusker]

We're talking about a merger and not an acquisition. A bit of a difference. But in the end the synergies of the merged companies would help alleviate cash flow issues of both. IOC needs current and medium-term cash flow and OSH needs more LT resources to lop on top of what oil and LNG they have now. It also solves a few issues for the PNG govt. The combined market cap of OSH and IOC would be $13-$15 billion or so. There would be no "bath" for either side.

Wise consideration.

Financial specialist speak in general terms of near,mid,long term horizons and gearing.  Note is made of the quality of all three and their aspect influence of strategic futures.

Compliments.

[Relker]

If Tricerops contains more than 1.2 TCF, it would be a perfect fit for Mitsubishi:

$1 Billion Petrochemical Plant Proposed For PNG
Project could lead to nearly 5,000 jobs for local workers

PORT MORESBY, Papua New Guinea (PNG Post-Courier, June 19, 2013) – Prime Minister Peter O’Neill has welcomed a proposal by a Japanese group to invest US$1 billion (K2,030,869,212.02) in a petrochemical plant in Papua New Guinea.

Mr. O’Neill and the minister for trade, commerce, and industry, Richard Maru last Friday met with senior executives of Mitsubishi Gas Chemical Company (MGCC) and Itochu Corporation to discuss the proposal.

The plant will be constructed to develop industrial chemicals, such as methanol and dimethyl ether (DME), by the Japanese companies.

"Under the new investment proposal MGCC and Itochu will invest US$1 billion to develop the project," Mr. O’Neill said.

He said this will be the biggest investment project by any Japanese company in the country and will create close to 5,000 jobs for our people during the construction period and production life of the plant.

Mr. O’Neill welcomed the investors and assured the seven executives that the government will allocate a portion of the Konebada Petroleum Park for the project

He also assured them that the government will provide the gas reserves (1.2 trillion cubic feet) needed for the project.

"My government is committed to supporting industries that add value to our natural gas reserves, which is good for the country," Mr. O’Neill said.

The Prime Minister said PNG has enough gas not only to export, but to use for downstream processing on projects like the petrochemical industry being proposed by the Japanese group.

"This will create employment for our people, grow our economy and provide spin off business opportunities for our local companies.

"This is what I want to see happen in our country," Mr. O’Neill said.

"I’ve already made it clear to our partners such as InterOil and ExxonMobil that part of our natural gas and oil must be used for the development of DME/methanol and power supply," Mr. O’Neill said.

"This is a vote of confidence in PNG. But we must not take this for granted. As a government we will do all we can to continue this stable political climate and create a conducive environment for more investment opportunities," Mr. O’Neill said.

PNG Post-Courier: http://www.postcourier.com.pg/
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