O'Neill: NEC Approval/Green Light Project

[Tree]

Tree, Phil mentioned several times that there was a group kicking off a meeting in PNG to finalize NEC approval. Did he say how long that meeting would last? Also I wonder why no one brought up the 50% quote from Liam Fox or the WSJ although it sounded to me like from Phil's comments that the 50% option is not even a consideration

It seems improbable to me. How much gas can PNG need? It's a country with 6M inhabitants, 22.5% of E/A should provide all the gas they can use and then some..

Let me clear this up as I can.

PNG is not making a power play on 50% of E/A.

PNG has an ongoing social crisis in health care, education, infrastructure and it is in catastrophic proportions.  PNG cannot afford to enter into Gulf LNG start-up and address infrastructure needs simultaneously.  PNG is basically opting out of start-up plant and reserving a larger stake in 2nd plant out of necessity born of national choice.  This makes start-up easily financed s no one has to finance a broke PNG's stake upfront.

It looks to me that O'Neill was heroic in telling the world that IOC has PNG committment to procede on Gulf LNG.  This eliminates PNG political risk.  Callio cross-examind Phil on this point and I bet we get a bullish update from Callio based solely on this point.

Anyone that expected names and prices to be revealed today is nuts.  Final bids are now solicited, we have a project, all bidders are financable and all bidders that have been in the mix are still in the mix.  That means EWC is financable and in the mix.  They will be hard to beat.  Phil said sheme is up to SD partner and IOC is fine with whatever.

We have proposals for 3.8, 4.5 and 4.9 Mtpa start-ups and both GLJ and GC agree there is enough gas in PRL 15 for a 8Mtpa plant.