1. Agreements have to made between Exxon and Oil Search, Santos, Nippon and PNG Govt. entities as to how IOC is going to be allowed into the project. Will each partner reduce their ownership share in order to allow IOC to have a share or will they be paid a toll to allow IOC to use their facilities?
2. PNGLNG partners that own a share of trains 3 and 4 will have to be able to finance their share of capital costs. Will the Exxon portion of Elk/Antelope be split between all of the PNGLNG partners so that they will all become our Farm-in partners? If so the new partners will have to finance their share of future development cost and pay for their share of sunk costs in PRL-15. Does Oil Search have the money?
3. Other license areas may be in play. We need a farm-in partner in PPL 238 and PPL 236 and possibly another partner in PPL 237. Is Exxon interested in being that partner in all areas?
4. If we are working on Farm-in Agreements on all license areas, the new Partner may require a new 5 year license from the Government before signing. That might extend the time required to finalize the agreement.
5. IOC could be considering Farm-in bids from other Companies. I believe the exclusive discussions with Exxon prevent IOC from soliciting bids from others but it does not prevent others from submitting bids.
6. Is it possible that someone has made an “informal” or verbal offer for the Company?
Others?