MITSUI reported out on CSP -

[Palm]

Important to note in the MDA; this is the paragraph discussing Mitsui's situation:

"The portion of funding that relates to Mitsui’s share of the Condensate Stripping Project as at March 31, 2013, amounting to approximately $13.5 million, is held in current liabilities as the agreement requires refund of all funds advanced by Mitsui under the preliminary financing agreement if a positive FID was not reached by February 28, 2013. We are currently finalizing with Mitsui to extend the positive FID date to June 30, 2013."

It's not over until it's over; they are still talking it seems. Thus Collin's comment.

[Palm]

This story is incorrect I believe based on the 1Q 2013 CC. The Mitsui agreement may have lapsed Feb 28, but in the MDA for 1Q the following statement is made:

"Mitsui Unsecured Loan (Upstream)
On April 15, 2010, we entered into preliminary joint venture and financing agreements with Mitsui relating to the
Condensate Stripping Project. On August 4, 2010, we entered into the CSP Joint Venture with Mitsui for the
development of the condensate stripping facilities. Mitsui and InterOil hold equal interest in the joint venture.
Mitsui is to be responsible for arranging or providing financing for the capital costs of the condensate stripping
facility.
The portion of funding that relates to Mitsui’s share of the Condensate Stripping Project as at March 31, 2013,
amounting to approximately $13.5 million, is held in current liabilities as the agreement requires refund of all
funds advanced by Mitsui under the preliminary financing agreement if a positive FID was not reached by
February 28, 2013. We are currently finalizing with Mitsui to extend the positive FID date to June 30, 2013. The
portion of funding that relates to our share of the Condensate Stripping Project (amounting to $11.9 million),
funded by Mitsui, is classed as an unsecured loan and interest accrues daily based on LIBOR plus a margin of
6%. During the quarter ended March 31, 2013, the weighted average interest rate was 6.20%."

I believe that they may be working with Mitsui outside of the JKM consortium to possibly move ahead with the CSP to provide condistioned gas to be fed into the PNG LNG pipeline to then be used for fuel for the just announced EWC 80 MW gas-fired power plant to expand the Port Moresby power grid. This project is part of the PNG Power Ltd plan to increase the availability of electricity to PM and the rest of PNG.

[jft310]

Geez what will they do with the liquids?? Wish they had a refinery?? Geez ya mean they get liquids without an LNG plant. ??? Who would have thought??? Maybe just maybe Henry Aldorf knew. Think Henry has more data than all of the rest of us??? Got my vote!!

[TxPm]

This would explain why nothing was mentioned on the CC yesterday as no "materiel event" has occurred yet and the article was wrong....wouldn't be the first time the media printed something incorrect about IOC

[Tree]

Is it just easier to build mega-plant in napanapa  then? Maybe so. If all of IOC/Partner's interests in PRL15 is sold to a SM let them drop a pipeline and feed that bad-boy from E/A. CSP provides early cash for them. IOC keeps Gulf LNG location, social/environmental mapping and all engineering and could be fed from T-2. Just a matter of pipeline route as 100's of billions in cash-flow doesn't discriminate feedstock sources. Gulf LNG could be constructed within existing timelines, 4 OT agreements could be honored and that FID ready project from Dec. 2011 could still be FID ready. TOT/OSH may be interested in an innovative mid-modular scheme which is easy to sell and add on.

[Petro2458]

Did anyone notice that the bidders comment in the press release no longer states "utility companies". ??

[Palm]

Is it just easier to build mega-plant in napanapa  then? Maybe so. If all of IOC/Partner's interests in PRL15 is sold to a SM let them drop a pipeline and feed that bad-boy from E/A. CSP provides early cash for them. IOC keeps Gulf LNG location, social/environmental mapping and all engineering and could be fed from T-2. Just a matter of pipeline route as 100's of billions in cash-flow doesn't discriminate feedstock sources. Gulf LNG could be constructed within existing timelines, 4 OT agreements could be honored and that FID ready project from Dec. 2011 could still be FID ready. TOT/OSH may be interested in an innovative mid-modular scheme which is easy to sell and add on.

Interesting thing is that in working with both the ADB and World Bank there was mostly leaning toward doing a lot of hydro, including for the PM expansion.  Gas-fired was also in the mix, but the one concern was PNG LNG gas is spoken for and when might the next project be approved and ready to produce conditioned gas?  The fact that EWC has been awarded such an important piece of the electrification plan says to me that there has been assurance than gas will be available.  These gas-fired plants that EWC does are proven to work (Indon is best example and O'Neill went their early this year to see it), and they can be built fairly quickly.  We also know that CSPs can be built very quickly and that Mitsui has everything engineered for both re-injecting gas temporarily and for having an LNG plant ready at start-up.  We also know that Mitsui was upset at one time because IOC was looking at EWC's gas conditioning plant design (EWC has CSPs also) because it could be done less expensively.  Either way, this EWC gas-fired plant for PM is important news IMHO for IOC.