11-16-2012, 01:35 AM
There was a discussion a little while ago about the PM getting two overrides of the NEC. Whether or not O'Neil just used one is immaterial to IOC's interest. O'Neil may well be impatient with NEC given the magnitude of the problems he's addressing and he could be using his first. Regardless, his personal communications early today to multiple people make it clear the NEC hurdle has been cleared.
Phil seemed particularly happy with the 3.8 MTPA plant for startup. He stated how much easier it would be for all parties to complete financing arrangements. That might also mean the bids from the smaller guys were higher and thus the selldown, when it comes, will come at a higher price. How the results of A3 and E3 wells will impact the speed of expansion to 8+ MTPA, or whether that decision will be withheld pending T3 drilling, is an interesting question. Regardless, achieving FID on 3.8 MTPA appears to be about the only key necessary to unlock IOC's future plans.
Phil seemed particularly happy with the 3.8 MTPA plant for startup. He stated how much easier it would be for all parties to complete financing arrangements. That might also mean the bids from the smaller guys were higher and thus the selldown, when it comes, will come at a higher price. How the results of A3 and E3 wells will impact the speed of expansion to 8+ MTPA, or whether that decision will be withheld pending T3 drilling, is an interesting question. Regardless, achieving FID on 3.8 MTPA appears to be about the only key necessary to unlock IOC's future plans.