I think it is a very good article. It puts the attention back on just how positive a development NEC approval of a smaller phased in project in the Gulf is.
IOC has desired a phased in approach in the Gulf for three years. Now they have it. Start up costs are less, and by rights should attract more and higher bids.
I disagree, however, with some here who suggest the 50/50 split with the government was common knowledge. To the contrary, it created enormous confusion and temporary wealth destruction. Management to this point has done a poor job of explaining this to shareholders. I am still of the opinion that there is "method to their madness".
Allowing the government to negotiate with 4T's of gas vs 2T's, in effect, IOC renting its' gas to the government, still makes a lot of sense to me.
Today's WSJ has an article about Xstrata's escalating costs for a mining project in PNG. A recent study suggests they tap PNG's natural gas reserves instead of hydroelectricity to power the mine.