08-20-2013, 12:45 PM
"Also, it implies that InterOil may in fact end up with an equity stake in PNG LNG."
Agree once again based on the last point:
"If transaction proceeds, OSH could potentially participate, either through use of PNG LNG infrastructure or integration into PNG LNG"
That is a reference to their understanding of how IOC might be integrated into PNG LNG; either though buying into the common infrastructure and just being part of any trains it participates in or becoming part of whole project IMHO.
If anything this could be what IOC is driving a very hard bargain on. They may be saying that they don't want to just sell gas; they want to participate in "non-operated LNG" with their gas. Getting that worked out is probably not the easiest thing, but anything is doable. If not IOC may be saying that they will work with someone who shares their goals and take all of their gas and do a separate LNG project. Exxon has every reason to make a deal happen at least for train 3 at PNG LNG.
Agree once again based on the last point:
"If transaction proceeds, OSH could potentially participate, either through use of PNG LNG infrastructure or integration into PNG LNG"
That is a reference to their understanding of how IOC might be integrated into PNG LNG; either though buying into the common infrastructure and just being part of any trains it participates in or becoming part of whole project IMHO.
If anything this could be what IOC is driving a very hard bargain on. They may be saying that they don't want to just sell gas; they want to participate in "non-operated LNG" with their gas. Getting that worked out is probably not the easiest thing, but anything is doable. If not IOC may be saying that they will work with someone who shares their goals and take all of their gas and do a separate LNG project. Exxon has every reason to make a deal happen at least for train 3 at PNG LNG.