08-06-2013, 10:00 PM
This also explains Duma's recent 180 day threat to IOC.
'IOC, if you don't commit to Gulf LNG, I the Hon. Wm. Duma will cancel your project agreement and bring in a ready RDS to develop 4.6 T's of E/A'
Problem is, if Gov't opts in to SPA then Gov't cannot also opt in for the remaining 4.6T's in E/A, that would leave RDS and Gulf without a Gulf project - yet. The time to obstruct is now and Duma/RDS know it. We know what O'Neill supports and that is to rapidly maximize PNG LNG first. RDS cannot/will not attempt a takeover of IOC as they cannot/will not win a bidding war with XOM and a 3-train brownfield expansion . Won't happen. RDS will either need to find their own gas or wait until XOM has all IOC's gas they want before RDS has a shot at LNG in PNG.
'IOC, if you don't commit to Gulf LNG, I the Hon. Wm. Duma will cancel your project agreement and bring in a ready RDS to develop 4.6 T's of E/A'
Problem is, if Gov't opts in to SPA then Gov't cannot also opt in for the remaining 4.6T's in E/A, that would leave RDS and Gulf without a Gulf project - yet. The time to obstruct is now and Duma/RDS know it. We know what O'Neill supports and that is to rapidly maximize PNG LNG first. RDS cannot/will not attempt a takeover of IOC as they cannot/will not win a bidding war with XOM and a 3-train brownfield expansion . Won't happen. RDS will either need to find their own gas or wait until XOM has all IOC's gas they want before RDS has a shot at LNG in PNG.