07-07-2013, 04:08 AM
'Stavros' pid='25361' datel Wrote:When you post articles, please look into the details Tree. On this one, you'll find out that CNOOC is a major JV Partner in Tangguh LNG. That's why they get the gasfrom the project at a discounted "wholesale price" relative to the retail offtakers who pay on a slope + offset formula relative to the Japan Crude Cocktail. The Tangguh project is operated by BP Indonesia with a 37.16% interest. Other partners are CNOOC (13.9%), MI Berau B.V. (16.3%), Nippon Oil Exploration (Berau) Ltd. (12.23%), KG Berau/KG Wiriagar (10%), LNG Japan Corporation (7.35%) and Talisman (3.06%). Bink is Happy EOM
Not how it works. LNG projects would not exist if you were correct. CNOOC does not receive a below market LNG price as a 1/7th partner at the expense of the partners owning 87%.
LNG projects 'financed' by reaching market priced OTs of usually ~75% of production. Those in the production JV share in the rich cash-flow LNG OTs produce proportionate to their ownership stake. If an OTer is in the production JV they are in essence hedging their LNG costs with an highly profitable ownership stake.