'ebster123' pid='26843' dateline='<a href="tel:1376070 Wrote:[quote='Movieguy' pid='26819' dateline='1376055521'] "A bird in the hand is worth two in the bush."
'Palm' pid='26820' dateline='<a href="tel:1376056 Wrote:Then you have some of the hard facts that make up petroleum deals. The average petroleum deal is made up of some 130 different contracts between all of the groups involved. And we know that the LNG contracts are some of the most complicated, and contracts with the government(s) involved are not far behind. We know that these discussions involve the PNG government because both IOC/Exxon and the PNG government (outside of in-the-dark Duma) have acknowledged that they have had many discussions with the government. To expect all of this to happen in 30 or even 60 days is a bit unrealistic. When Exxon bought XTO Energy the decision to approach XTO was made in July and the deal was announced in December. Both Exxon and XTO were (are as XTO is now a subsidary of XOM), US based fortune 500 companies. The fact that Exxon stated that the major terms have already been agreed to is huge as for them to say anything regarding a negotiation process takes many levels of approval. But it doesn't necessarily mean all formal contracts have been worked through and finalized by ALL necessary parties. I'd love for this to be done yesterday, but I know that's very unrealistic when you understand the complexity of these deals and ALL of the parties involved.
Palm,
I both respect and appreciate your comments. I am not aware of all the aspects and details of a LNG deal, let alone a very large LNG deal. However, there seem to be a lot of individuals on both the long and short sides that do know these details. Many of the longs I suspect are on this board. If this is the case then why do we have repeated "knowledge" come out later or after the fact. If this is known, expected or understood in a LNG deal then WHY wouldn't one if the people in the know share that ith fellow longs instead of sitting quiet while others publicly watch the 30 and 60 day windows come and go without the anticipated del. This is not the first time this type of thing has happened and may be one of the reasons some on here get frustrated. JMHO FWIW
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eb,
such info has been on SHU and the zoo repeatedly. LNG contract workshops are offered around the world. $6k to attend and get a base course in the world of 3000 page deals. Remember the 'oil is like dating and LNG is marriage' posts? Oil goes anywhere easily while LNG is point to poing and requires billions in hardware and delivery guarantees,same with LNG feed gas. Posts of Conrad Kerr in cc expertly explaining how LNG is not timeline based but is checked box based. Problem is many dont study or remember or just miss all the great DD posts on SHU. Palms link to the enormity of contracts should not have come out of left field to anyone on this MB but it has. That explains frustration on part of those doing and sharing DD as well as those seeing that DD for the first time.
These facts help explain the volatility IMO