Contrasting messages

[Petrovale]

Monday, 5 August 2013

THERE are mixed signals on the progress of ExxonMobil’s talks with InterOil as Prime Minister Peter O’Neill reiterates his support while Petroleum Minister William Duma imposes a new deadline on InterOil.

Peter O'Neill and William Duma to the left at the opening of Shell's office at Petromin Haus. Image courtesy of Shell.

One source indicated that Exxon’s exclusive period of negotiations for a slice of InterOil’s Elk-Antelope discoveries had only been extended to August 1.

It was on this day that Duma was featured on EMTV with Gulf province members of parliament as he warned that InterOil had 180 days to honour its commitments of its 2009 LNG project agreement with the government.

InterOil is yet to respond to a PNGIndustry News.net request for news on whether there had been any further time extensions for Exxon’s exclusive negotiations period.

However, there are other signs that these talks are continuing and that the government is open to moving away from the 2009 project agreement to allow Elk-Antelope gas to fuel an expansion of the Exxon-led PNG LNG project.

"Resource development is going quite well, particularly in petroleum and gas, and I believe current negotiations between Interoil and PNG LNG plus others will give a very strong possibility of a five-train LNG project,” O’Neill recently told The Australian.

While Duma is supporting the wish of Gulf province MPs to keep Elk-Antelope gas-processing in that area, Exxon’s aim of buying into 4.6 trillion cubic feet of gas from this field to support a third train of PNG LNG will be of considerable benefit to the wider national economy.

A cabinet reshuffle is also expected this month with 101 of the 111 MPs in O’Neill’s coalition government.

Duma, who leads the seven-seat United Resources Party, said he was ready for the top job of PM during campaigning ahead of the 2012 election.

[Stavros]

Thanks Petrovale for your, as usual, informative posting.

So it seems that Mr. O'Neill has been told that IOC is negotiating "with PNG LNG and others" to provide enough gas for a five-train LNG proejct ... 3 more LNG trains coming around the mountain!!!

This explains why it's taking longer than originally expected; and why the deal will be HUGE.

[jft310]

Deal must be off the wall.Five trains.

[jft310]

"A cabinet reshuffle is also expected this month with 101 of the 111 MPs in O’Neill’s coalition government."Bye Bye Duma,

[ArtM72]

Deal must be off the wall.Five trains.

The ONeil quote was 5 trains with one provided by IOC.  I could be the dumbest and least politically astute person on this board but that is a clear compromise win/win/win position for IOC, PNG and the Gulf as there exists little doubt that between E/A and Triceratops plenty of gas exists for another two trains in THE GULF.

The only thing I wonder about is why we're not hearing of any drilling going on, but I suspect that's due to drilling being part of the final negotiation package.  The BIG surprise would be if XOM and IOC jointly announce a proposal to build modular LNG in the Gulf using EWC technology.  THAT would be a world shaker.

[jft310]

Art I read 3 more trains without names.

[Palm]

O'Neill's comment was:
"Resource development is going quite well, particularly in petroleum and gas, and I believe current negotiations between Interoil and PNG LNG plus others will give a very strong possibility of a five-train LNG project."

[Putncalls]

There is plenty of time to drill a few more holes.

[ArtM72]

and then O'Neill said "Taureka has taken a top job with Interoil, which controls access to large reserves of gas in the Gulf province and which is likely to provide the resource for one of those further PNG LNG trains."

ONE, not three.

Not that I'm a future thinker, but I'd suggest there is more than enough gas on the Gulf of Papua's adjacent provinces to handle 30 MTPA. Maybe so, maybe not, but odds are pretty favorable that Triceratops alone could match the E/A resource. Do you think XOM is buying up properties with low chances of finding hydrocarbons?

Anybody seriously consider whether Duma in fact works for the Wall Street shorts or those Aussie gas interests that will do anything to keep cheap PNG gas off the market? Maybe he's even kowman over at IV.

[sydbod]

O'Neill's comment was: "Resource development is going quite well, particularly in petroleum and gas, and I believe current negotiations between Interoil and PNG LNG plus others will give a very strong possibility of a five-train LNG project."

I believe Palm is correct.

I can not find the exact links I wanted at the moment, but we have to remember that there is still a huge potential for the PNG LNG partners to find enough gas (that they believe is there) for 2 extra trains in their own sites.

There is very little mention about the full potential of the Hides field itself. The full size of this field has still not been defined as the water contact level will only be attempted to be found later (very late) in 2014 when a water reinjection hole gets drilled.

There is another potential gas deposit under Hides called "Hides Deep" and from memory it will be also explored with that same water reinjection hole drilled in very late 2014 (I think somewhere the mention was a sidetrack hole to be used).

PG:17 (small mention about Hides Deep)

http://www.google.com.au/url?sa=t&rct=j&q=hides+deep+santos&source=web&cd=2&cad=rja&ved=0CDIQFjAB&url=http%3A%2F%2Fwww.santos.com%2Flibrary%2F140612_Transforming_through_LNG_Presentation.pdf&ei=MEoAUtDvH4iPkwXyq4E4&usg=AFQjCNGWQ2606VQww3kpnWLUm8wCpLa3vQ&bvm=bv.50165853,d.dGI

We have to remember all this is not proved untill the holes go in the ground and gas is found should there actuall be this amount of extra gas. We should also remember that O'Neill was also using the words "I believe".

We have not even started to include potential gas from P'nyang or extra gas from some of the other smaller sources.