'Getitrt2' pid='28205' datel Wrote:As of today RJ has published an updated "E & P Catalyst Outlook" that includes two anticipated events or announcements for IOC:
1. Resource selldown to Exxon: InterOil is in negotiations with Exxon regarding the sale of a stake in PRL 15 (which includes the Elk/Antelope resource base); Exxon will utilize the gas to supply an additional train for its under-construction LNG project; InterOil retains the right to build a competing LNG project with the remaining resource; the selldown's fiscal terms have yet to be announced. Exclusivity expired, opening the door for other players to negotiate. ANTICIPATED DATE: 3Q13. MAGNITUDE/IMPACT: HIGH.
2. Longer-term resource development strategy: Once the resource selldown being negotiated is finalized, InterOil will be able to disclose the strategy for developing its remaining resource base, which may include a separate LNG project and/or condensate stripping plant. ANTICIPATED DATE: TBA. MAGNITUDE/IMPACT: HIGH.
Thanks Getit,
Since the original 'exclusivity' announcement, it has been obvious that deal#1 was feedstock and deal#2 was 'optionality' to decide what to do with the other 4.6T+. It's been feedstock and further production from day 1. Does anyone really think XOM won't close on a little crappy deal of 4.6T's?
The game has been fixed and it goes like this:
1) XOM negotiates for whatever stake they want - first dibs.
2) RDS/TOT and the rest bid for the remainder, if XOM doesn't take it all.
This gets sorted out and in a timeframe it takes to get all multipe involved parties satisfied. No easy/quick task. The 1Q CC analyst McDougal referred to 'the coming months and if we will receive updates on progress' , Industry interviews allude to deal finality by 'end of year, possibly'. It can happen this Monday or on Halloween and it will not be surprising.