05-15-2013, 11:11 PM
This story is incorrect I believe based on the 1Q 2013 CC. The Mitsui agreement may have lapsed Feb 28, but in the MDA for 1Q the following statement is made:
"Mitsui Unsecured Loan (Upstream)
On April 15, 2010, we entered into preliminary joint venture and financing agreements with Mitsui relating to the
Condensate Stripping Project. On August 4, 2010, we entered into the CSP Joint Venture with Mitsui for the
development of the condensate stripping facilities. Mitsui and InterOil hold equal interest in the joint venture.
Mitsui is to be responsible for arranging or providing financing for the capital costs of the condensate stripping
facility.
The portion of funding that relates to Mitsui’s share of the Condensate Stripping Project as at March 31, 2013,
amounting to approximately $13.5 million, is held in current liabilities as the agreement requires refund of all
funds advanced by Mitsui under the preliminary financing agreement if a positive FID was not reached by
February 28, 2013. We are currently finalizing with Mitsui to extend the positive FID date to June 30, 2013. The
portion of funding that relates to our share of the Condensate Stripping Project (amounting to $11.9 million),
funded by Mitsui, is classed as an unsecured loan and interest accrues daily based on LIBOR plus a margin of
6%. During the quarter ended March 31, 2013, the weighted average interest rate was 6.20%."
I believe that they may be working with Mitsui outside of the JKM consortium to possibly move ahead with the CSP to provide condistioned gas to be fed into the PNG LNG pipeline to then be used for fuel for the just announced EWC 80 MW gas-fired power plant to expand the Port Moresby power grid. This project is part of the PNG Power Ltd plan to increase the availability of electricity to PM and the rest of PNG.
"Mitsui Unsecured Loan (Upstream)
On April 15, 2010, we entered into preliminary joint venture and financing agreements with Mitsui relating to the
Condensate Stripping Project. On August 4, 2010, we entered into the CSP Joint Venture with Mitsui for the
development of the condensate stripping facilities. Mitsui and InterOil hold equal interest in the joint venture.
Mitsui is to be responsible for arranging or providing financing for the capital costs of the condensate stripping
facility.
The portion of funding that relates to Mitsui’s share of the Condensate Stripping Project as at March 31, 2013,
amounting to approximately $13.5 million, is held in current liabilities as the agreement requires refund of all
funds advanced by Mitsui under the preliminary financing agreement if a positive FID was not reached by
February 28, 2013. We are currently finalizing with Mitsui to extend the positive FID date to June 30, 2013. The
portion of funding that relates to our share of the Condensate Stripping Project (amounting to $11.9 million),
funded by Mitsui, is classed as an unsecured loan and interest accrues daily based on LIBOR plus a margin of
6%. During the quarter ended March 31, 2013, the weighted average interest rate was 6.20%."
I believe that they may be working with Mitsui outside of the JKM consortium to possibly move ahead with the CSP to provide condistioned gas to be fed into the PNG LNG pipeline to then be used for fuel for the just announced EWC 80 MW gas-fired power plant to expand the Port Moresby power grid. This project is part of the PNG Power Ltd plan to increase the availability of electricity to PM and the rest of PNG.