Sluicer likes FLNG an opinion below

[jft310]

Sluicer from IV says this , his opinion

Response for MOVIEGUY, poster on Shareholdersunite.

The reason no one has bid for IOC is that XOM isn't allowed and TOT doesn't have anyway to produce the NG so it can be sold-no processing plant or pipeline infrastructure. TOT can't spend $5-6 billion to buyout IOC and then have to spend another $20 billion putting up a two-train plant.

The only way to have TOT BO IOC is to get some offtake from XOM and get the approval to use a floating LNG processing ship configuration to lop 5 years off the ability to sell the NG from IOC's prospects.

I think that is going to happen, as PNG wants more sales much sooner than the TOT contract which is looking at 6 years out. As soon as BOBCAT and/or WAHOO confirms there is another 2-3 TCFG, TOT will go to PNG and tell them, we will sell a couple of trillion more of NG, IF WE GET YOUR APPROVAL TO USE A FLNG CONFIGURATION.

What do you think PNG is going to do? They are going to approve it. Look for that sometime in the May-June time, just around when the drilling results are found out by the inside parties. The IOC company presentation says they will need 90 days to drill, log and test, but they will know before then how the well(s) are doing. One of then, either Bobcat or Wahoo, will come in and then the bids will start.

[Movieguy]

Thank you, Sluicer, for a valid explanation, and thanks Jft for posting it here. I would be very happy with that scenario playing out as IOC is bought out but for a certainly higher number than it would be today based on the new gas find(s). The third well that should spud any day, I believe Raptor, must also be thrown into that mix.

[Stavros]

Sluicer: We don't know that "XOM isn't allowed" now that some of the former decision makers have left the building.
Time will tell whether XOM steps in to take the bride off the altar.
What would Yogi say?
Bink would say NOOS

An FLNG is not as low cost as some folks think.
CSP costs over $500 Million.
They need the two pipelines to the Gulf (Condy and Gas) and then a 6 km long jetty to get the gas out to water deep enough to handle the big ships.
The cost of the FLNG facility and the associated floating storage is lower than land based but not cheap by any stretch of the imagination.

[jft310]

Sluicer: We don't know that "XOM isn't allowed" now that some of the former decision makers have left the building. Time will tell whether XOM steps in to take the bride off the altar. What would Yogi say? Bink would say NOOS An FLNG is not as low cost as some folks think. CSP costs over $500 Million. They need the two pipelines to the Gulf (Condy and Gas) and then a 6 km long jetty to get the gas out to water deep enough to handle the big ships. The cost of the FLNG facility and the associated floating storage is lower than land based but not cheap by any stretch of the imagination.

to me the benefit of earlier monetization will weigh heavy. Is that Exxon or FLNG or a longer wait 2 train LNG plant with higher LNG participation rate......?

[Getitrt2]

Sluicer from IV says this , his opinion

Response for MOVIEGUY, poster on Shareholdersunite.

The reason no one has bid for IOC is that XOM isn't allowed and TOT doesn't have anyway to produce the NG so it can be sold-no processing plant or pipeline infrastructure. TOT can't spend $5-6 billion to buyout IOC and then have to spend another $20 billion putting up a two-train plant.

The only way to have TOT BO IOC is to get some offtake from XOM and get the approval to use a floating LNG processing ship configuration to lop 5 years off the ability to sell the NG from IOC's prospects.

I think that is going to happen, as PNG wants more sales much sooner than the TOT contract which is looking at 6 years out. As soon as BOBCAT and/or WAHOO confirms there is another 2-3 TCFG, TOT will go to PNG and tell them, we will sell a couple of trillion more of NG, IF WE GET YOUR APPROVAL TO USE A FLNG CONFIGURATION.

What do you think PNG is going to do? They are going to approve it. Look for that sometime in the May-June time, just around when the drilling results are found out by the inside parties. The IOC company presentation says they will need 90 days to drill, log and test, but they will know before then how the well(s) are doing. One of then, either Bobcat or Wahoo, will come in and then the bids will start.

IMHO, Sluicer does not know what he's talking about, and his comment is worthless.

[Stavros]

That's a funny thing to say about someone's opinion Getit considering some of the stuff you post about IOC

[Putncalls]

If it was so easy for OSH to buy 23% of E/A with GVT approval what makes anyone think that XOM isn't in on the game?

Total has 20 billion in cash on hand along with a gross profit of 240 billion per year.

Shell can step up to the pump also.

[sydbod]

Sorry for the ignorance. Who is Sluicer?

[johnwgrant]

If it was so easy for OSH to buy 23% of E/A with GVT approval what makes anyone think that XOM isn't in on the game? Total has 20 billion in cash on hand along with a gross profit of 240 billion per year. Shell can step up to the pump also.

240 Billion gross profit sounds too high - unless it is in some other currency.    Exxon had gross profit of about $150 Billion in 2013 (net profit of $32 Billion).  Is TOTAL that much more profitable ?

[Putncalls]

Yahoo is calling Gross revenue "gross profit". I should have been more clear.