A lot of speculation which is based on what various parties are saying. One thing is clear; as operator Exxon wears the big boy underwear in PNG LNG and they will with PRL 15. As operator they are responsible to direct, make decisions and make sure that others perform. We don't know at this point what the Exxon/OSH relationship is. OSH was charged with finding enough gas for the original 2 trains totaling 6.9 mtpas and likely for any expansion. They are having trouble doing the expansion piece, and as operator Exxon likely has said that something has to change. I don't think they have thrown OSH aside because that isn't necessary yet, and OSH is still saying that the gas they have Total partnering on COULD feed the existing PNG LNG project and/or it could result in a new project. So things have obviously changed in Exxon's mind because they are forced to make things happen as operator.
PNG as the legal owner of resources wants the resources developed commercially. They will likely bless different possible scenarios as long as the development happens according to their rules. Exxon will call some tough shots if need be and the likes of Santos and OSH will have to live with it, or they have the option of pulling out at some point. In the end it's very big business and PNG is telling Japan, S Korea, China, India and others that they will provide them LNG. If the development doesn't work to their advantage (securing the LNG they want and need), PNG loses, Exxon loses and all partners lose. These people understand that and have too much to lose by not playing along and maybe even partnering with someone who they never thought they might.
So we play with scenarios like we always have because there are several scenarios that make sense for this all to happen. Exxon and PNG will make sure it happens.
Anyone familiar with the show Shark Tank understands the term, "I'm out". We have seen in Australia partners say "I'm in" one day and "I'm out" the next. Exxon may have to ask some of the PNG LNG round 1 partners if they are in or out.
http://www.youtube.com/watch?v=nZMaBQDXOkk
PNG as the legal owner of resources wants the resources developed commercially. They will likely bless different possible scenarios as long as the development happens according to their rules. Exxon will call some tough shots if need be and the likes of Santos and OSH will have to live with it, or they have the option of pulling out at some point. In the end it's very big business and PNG is telling Japan, S Korea, China, India and others that they will provide them LNG. If the development doesn't work to their advantage (securing the LNG they want and need), PNG loses, Exxon loses and all partners lose. These people understand that and have too much to lose by not playing along and maybe even partnering with someone who they never thought they might.
So we play with scenarios like we always have because there are several scenarios that make sense for this all to happen. Exxon and PNG will make sure it happens.
Anyone familiar with the show Shark Tank understands the term, "I'm out". We have seen in Australia partners say "I'm in" one day and "I'm out" the next. Exxon may have to ask some of the PNG LNG round 1 partners if they are in or out.
http://www.youtube.com/watch?v=nZMaBQDXOkk