'admin' pid='30103' datel Wrote:["I also like the fact that XOM's own gas is about $5/Mcf. P'Nyang and big bad Hides will cost more likely, that is why they haven't been tapped yet"] I'm far from an OilSearch expert, but isn't Hides part of LNG PNG? I remember Wayne, in that hidden interview, saying that E/A wells were twice as cheap and three times more productive, or something to that effect, but Hides is about as big as E/A.
Yes Admin, Hides is part of the PNG LNG Project JV. And it could be as big as E/A, that is not known yet. Hides is the cheapest route to expansion available in the PNG LNG project. Problem with Hides needs further drilling to determine upside and those Highlands wells are over $100,000,000 each and are some of the most expensive onshore wells in the world. XOM doesn't need several T's of even more expensive gas at this time.
XOM's other current option is the remote P'Nyang which requires a long pipeline and expensive wells and is NOT part of the PNG LNG Project.
XOM's best option is to feed PNG LNG with E/A gas it appears. They aren't negotiating to do so just because they like IOC so much.