02-08-2012, 06:51 PM
IT IS ALL ABOUT CONTROL.. KJM may not be the highest bidder. IOC #1 fear is at the end of the bidding process losing control of the project to last minute high bid from unfriendly Gorilla#1. Gorilla#1 wants a big % of IOC action. Yes some money upfront but not the big bucks if IOC can hang on. KJM does not want a bidding war, they offer a lessor amount but IOC has to give up only 20%, Pacific LNG 10%. IOC keeps control of E/A and T2. No problem keeping EWC and FLEX, production starts on time. IOC gives up a up a little upfront makes more in the future. Who would not want the biggest end users as your partners? PNG politicos may want Gorilla#1, but they would be hard pressed to deny a deal with KJM. IOC JVs 236 with one of the other bidders, gets money upfront from them and HOAs. These press releases are not by accident. IOC is in a very good position.