XOM is not the most likely winner, only the organization with the most skin in the game, the most to win, the most to possibly lose.
It's been some time since someone noticed how that pipeline to Port Moresby goes right past Gulf Province. When the existence of the "tee" was first mentioned here at SHU it seemed to be convenient foresight by XOM engineers. Maybe it was there to manifold LNG plants and fields to improve PNG's overall production reliability. Maybe it was there to provide capacity for multiple unit expansions at Port Moresby. I for one didn't think it might be necessary for their Unit 2 to get up an running as might appear to be the case today.
Now there are three good reasons for XOM to be involved in a selldown of E/A. Maybe just 4 MTPA for a few years while it continues its upstream exploration in the Highlands or Gulf. Maybe there's enough capacity in XOM's line to take everything the Highlands can give AND E/A at 8 MTPA. I don't think anyone here knows the ultimate capacity of that pipe.
Nothing like the pressure and privilege of unused infrastructure capacity. Hell, XOM can sell the gas to anyone they want...and begin within 24-30 months. What are LNG shipments projected to sell for in 2015? Win Win Win Good case for an attractive base bid, no?
It's been some time since someone noticed how that pipeline to Port Moresby goes right past Gulf Province. When the existence of the "tee" was first mentioned here at SHU it seemed to be convenient foresight by XOM engineers. Maybe it was there to manifold LNG plants and fields to improve PNG's overall production reliability. Maybe it was there to provide capacity for multiple unit expansions at Port Moresby. I for one didn't think it might be necessary for their Unit 2 to get up an running as might appear to be the case today.
Now there are three good reasons for XOM to be involved in a selldown of E/A. Maybe just 4 MTPA for a few years while it continues its upstream exploration in the Highlands or Gulf. Maybe there's enough capacity in XOM's line to take everything the Highlands can give AND E/A at 8 MTPA. I don't think anyone here knows the ultimate capacity of that pipe.
Nothing like the pressure and privilege of unused infrastructure capacity. Hell, XOM can sell the gas to anyone they want...and begin within 24-30 months. What are LNG shipments projected to sell for in 2015? Win Win Win Good case for an attractive base bid, no?