11-16-2012, 01:13 PM
I agree this is good for all. For the gov to want 50% of EA tells me they strongly believe what Phil said on the CC; all believe they have enough gas for 8mmptas. This is right now the least expensive gas field for the gov to get what they need. It's a huge field and assures what they need is there. By going for 50% they will get a competitive price (I do not think PRE-type pricing is likely since they are taking a much bigger bite and helping de-risk the project; as long as they get the financial backing. Very likely some of that China money will come into play.
To be sure the negotiations go quickly and productively O'Neill and NEC were very wise. Team some of his most trusted supporters with Duma, Petromin and the DPE secretary to be sure games are not played. Then put a tight deadline on hammering things out; Nov 30. O'Neill is a strong supporter of IOC and this project.
We can try and predict all night about operators (I assume the upstream operator means both resource and CSPs?) and whether there will be one or 2 plants. With that possibility of 2 plants it hints IOC is free to choose EWC and the choice of operator will dictate whether its EWC for all or EWC and a large modular /stick for the gov, or a large modular/stick for all. Also by saying IOC may have "its" processing facility in Gulf means gov can be there or they might pipe theirs to XOM's plant or build theirs elsewhere. If the gov chooses elsewhere, I hope they are ready for Kavo to scream bloody murder and stir up the locals. For that reason I would guess all would be in Gulf unless somehow they compensate by pouring major development dollars into Karema.
I also expect EWC will be popping in power plants based on O'Neill's trip to Indon and discussions with their PM.
The interesting thing will be whether they decide together that less than 50% makes the most sense. More fun for the masses.
To be sure the negotiations go quickly and productively O'Neill and NEC were very wise. Team some of his most trusted supporters with Duma, Petromin and the DPE secretary to be sure games are not played. Then put a tight deadline on hammering things out; Nov 30. O'Neill is a strong supporter of IOC and this project.
We can try and predict all night about operators (I assume the upstream operator means both resource and CSPs?) and whether there will be one or 2 plants. With that possibility of 2 plants it hints IOC is free to choose EWC and the choice of operator will dictate whether its EWC for all or EWC and a large modular /stick for the gov, or a large modular/stick for all. Also by saying IOC may have "its" processing facility in Gulf means gov can be there or they might pipe theirs to XOM's plant or build theirs elsewhere. If the gov chooses elsewhere, I hope they are ready for Kavo to scream bloody murder and stir up the locals. For that reason I would guess all would be in Gulf unless somehow they compensate by pouring major development dollars into Karema.
I also expect EWC will be popping in power plants based on O'Neill's trip to Indon and discussions with their PM.
The interesting thing will be whether they decide together that less than 50% makes the most sense. More fun for the masses.