Anatomy of a Gulf LNG Bidding War

[Orlando]

I do not have any first-hand experience or knowledge with the components of corporate deals of this magnitude. I do, though, know from talking with a company officer a few months ago that they want as much as possible to be binding and done before they announce a deal. While there will still be parts of it to finalize after the announcement, they want the announcement to be airtight and unquestionable.

[Tree]

EnnerOle has stated all parties they are negotiating with are acceptable to PNG and that they will deliver proposal within 2009 PA framework.  NEC cannot approve a project until all is in order.

What I would do to maximize bids.

1) Require FEED work for proposed scheme is complete to submit bid.

2) I would assign 1 rep from IOC to deal with 1 IB.

3) Collin, Phil and?, maybe Byker.

4) Each rep with IB, selects that IBs best bid

5) 3 IBs = 3 winning Bids.

6) CAs preclude sharing of details with other IBs or each IOC rep from divulging details with each other.

7) Present these 3 bids to IOC BOD and grade them 1-3 in order of BOD preference.

8) Present these 3 to NEC, get conditional approval for all 3 and have NEC rank in preference.

9) Return to each of the 3 with a conditional Gov't approval, binding if they are the winning bidder.

10) Allow 2 weeks for each bidder's best bid, then 1 last BOD meeting and select the winner.

Sure bidding war as winner get's a project, FID by Y/E and booked reserves in 2012.

EDIT:

10)  Allow 100 days for each bidder's best bid, deadline Feb. 28, 2013.  BOD meets with IBs first week of March to analyze bids from SM's, NOCs and Asian Utility consortium.

Hang on kids!  Bidder fur will be flying!!  Just like E-Bay, you don't post your best bid until the end of the auction period.  Common sense.

[Palm]

Hmmmm not bad Treedaddy, not bad at all. Only chnages have turned out to be very good; more bidders and likely higher bids with Ant3 in the pocket. Need more time fellas. No problem, just be sure you are really serious by Feb 28th.

[Tree]

Hmmmm not bad Treedaddy, not bad at all. Only chnages have turned out to be very good; more bidders and likely higher bids with Ant3 in the pocket. Need more time fellas. No problem, just be sure you are really serious by Feb 28th.

Good developments have a way of slowing down EnnerOle.  An Elder in Chicago is more geeked about those porosity #s than the bid deadline.  Ant-3 = best well to date.  What do those porosity #s do to the conservative recovery factors GLJ used in determining T-count?  I'd imagine bidders will assume different recovery rates, all it takes is 1 SM to assume recovery rates are velly good.

[Tree]

Hmmmm not bad Treedaddy, not bad at all. Only chnages have turned out to be very good; more bidders and likely higher bids with Ant3 in the pocket. Need more time fellas. No problem, just be sure you are really serious by Feb 28th.

Gee DebbiePalmer,

I've renamed this - 'Anatomy of an IOC Buy-Out'