Again, when things get to the "final" stages certain formalities must happen, especially when you are talking about agreements between countries. Three very important agreements were officially signed that do/could involve IOC's project:
1. March 29, 2010 "Petromin signs Principle Agreement with Japan Petroleum Exploration Co., Ltd (Japex)"
"Papua New Guinea ’s national, oil, gas and minerals company Petromin PNG Holdings Limited(Petromin) has entered into a long-term strategic partnership arrangement with Japan Petroleum Exploration Co., Ltd (Japex).
Japex is a publicly listed company and partly owned by the Japanese Government. It is the exploration and development company with oil and LNG interests in Japan and other parts of the world.
The Agreement on Principles for a Long-term Strategic Partnership was signed in Tokyo on Tuesday 30th March, 2010 in the presence of the Prime Minister, Grand Chief Sir Michael Somare by the President of Japex, Mr Osamu Watanabe and Managing Director of Petromin, Mr. Joshua Kalinoe.
In the signing ceremony, Mr. Kalinoe said the purpose and intent of the Agreement is significant for Petromin because of the value it will bring to the development efforts of the company in both operational and human resource development. Mr. Kalinoe said the Agreement allows Japex and Petromin to work together in assessing the development opportunities in the hydro -carbon business in Papua New Guinea , both at exploration and development stages. Japex will train Petromin staff in all aspects of the hydro-carbon business, including commercial and technical operations using Japex facilities in Japan and elsewhere.
Mr. Kalinoe said both Japex and Petromin have agreed to form a relationship that would also facilitate Petromin’s financial obligations in exploration and development, including the Elk/Antelop LNG project.
As part of the strategic partnership agreement, a number of technical staff from Petromin will be travelling to Japan in April to work with Japex’s staff on LNG project design and planning, including reservoir management and modelling.
Mr. Kalinoe said, he is excited about the long-term benefit that this relationship with Japex will bring to the capacity building needs of Petromin in both human resource development and technology transfer."
2. March 31, 2010- "Petromin Congratulates Interoil & Mitsui Corporation"
"The Managing Director and CEO of Petromin, Mr. Joshua Kalinoe has congratulated InterOil and Mitsui Corporation for entering into a Preliminary Commitment Agreement for developing phase one of the Elk/Antelope LNG project, subject to final ratifications.
Phase one of the project includes the extraction of condensate and development of upstream LNG extraction facilities.
Mr. Kalinoe made these remarks on the occasion of the signing ceremony in Tokyo of the Commitment Agreement between InterOil and Mitsui in front of the Prime Minister, Grand Chief Sir Michael Somare on Tuesday 30th March, 2010.
InterOil is the upstream operator for the Elk/Antelope LNG project and Mitsui Corporation is one of the leading Japanese investment and trading companies.
The Preliminary Commitment Agreement allows Mitsui to fund 100 percent cost of the Condensate Stripping Facilities (CSF) which includes a liquid separation plant and pipeline in the project area, and earn tolling fees and various other benefits. Mr. Kalinoe said, under the arrangement Mitsui will also fund Petromin’s share of the condensate extraction costs. This means that Petromin and the State will not have to seek separate financing arrangements to fund their share of the equity.
Mr. Kalinoe said that it is one of the best project financing deals for the current partners in the project which includes Petromin, InterOil and Pacific LNG. It also means that early revenue for Petromin and the State from the Condensate Stripping component of Elk/Antelope LNG project where first cargo of condensate is expected by the second half of 2012.
Under the arrangements Mitsui will co-build the extraction facilities and will receive toll fee as well as financing cost from condensate revenue at first production of condensate. The condensate will be sold on a net back basis to the InterOil refinery in Port Moresby at international market and local PNG market prices.
Mr. Kalinoe said this arrangement adds more value to Papua New Guinea than any other projects where all the LNG products are sold overseas."
3. July 4, 2010- "Petromin and Mitsui sign MOU to develop opportunities in Gas-Based industries"
"Papua New Guinea’s national oil, gas & minerals company, Petromin PNG Holdings Limited, has signed an MOU on Friday in Port Moresby with Mitsui & Co Ltd, Japan’s major trading company, to jointly undertake feasibility studies designed to identify and establish new PNG businesses based on the country’s gas resources.
Petromin Managing Director and CEO, Joshua Kalinoe and Mr Shintaro Ambe, Managing Officer of Mitsui’s Infrastructure Projects Business Unit said in a joint statement that Petromin and Mitsui want to see downstream businesses established which will create long term employment opportunities for Papua New Guineans."
http://www.petrominpng.com.pg/news/press/Petromin%20-%20signs%20-%20MOU%20-%a0with%20-%20Mitsui.html
All of these involve agreements between JAPEX/Mitsui and Petromin and this had been worked on between the governments. I strongly believe that Petromin will not be the ending holder of the Gulf LNG State interest; likely NPCP will. With the above agreements having been made Japan must have formal explanation and agree with breaking these agreements with Petromin and having them assigned to NPCP. It sounds as if there is a pretty large delegation of people going to Japan, and last time (March 2010) reps of IOC were included as well as reps of Petromin. We could see the same thing this time. I'm not saying that the main reason O'Neill and the thers are going to Japan is for Gulf LNG, but there is likely going to be some of the trip devoted to it. PNG and Japan have a good relationship and this needs to be respected and nurturede. O'Neill is very good at this; he understands.