'petrengr1' pid='12669' datel Wrote:
'jake990037' pid='12667' datel Wrote:Here is official press release from O'Neill. http://www.scribd.com/doc/113416961/PNG-...NG-project# I have a concern that all the power in these negotiations on the terms for the additional 27.5% lies with the PNG govt.. We will have to see what terms are agreed (hopefully not imposed) but I see why the situation could read like a partial nationalization. Tell me why my concerns are misguided.
Jake- This is the first time I have seen this "official" press release from Mr. O'Neill. I can see why you are concerned. This looks like what we had heard a few days ago and I thought Phil was down playing that possibililty today because the Government didn't have any money. Now they want 50% and they want it to be sellable which to me means it needs to go through an LNG Plant. Also they say they want 2 separate facilities. Looks like a big "grab" unless they are going to have someone like Shell finance their share and build a separate LNG Plant. I am with you, I am beginning to need a lot of help to understand what the Government wants.
Thanks for this Jake. Liam Fox this a.m. said the 50/50 deal was about a $3 Billion deal and there wasn't an indication how PNG intended to pay for their share.
We do know meetings are schedued tonight US time in PNG to negotiate the commercial terms. We hve heard previously that PNG would buy into a larger position at terms matching others. There has been chatter of a 2nd processing faciity and could well be IOC's 1st 4 Tcf goes to Gulf LNG as advertised earlier and 2nd 4 Tcf goes to a 2nd plant, presumably with Shell.
This doesn't appear to be a power grab at all to me. It is dated so IOC would have had this late afternoon US time yesterday I think. Exact time doesn't matter and this weeks negotiations could render this agreement here either obsolete or not in it's final form. Bottom line IOC has approval for Gulf LNG in Gulf Province for the start up volumes being shopped.