11-01-2013, 10:43 PM
'Movieguy' pid='30699' datel Wrote:I was told by WA without hesitation that the government would have no problem with IOC being taken over. This was some months ago. Perhaps things have changed, or perhaps he was wrong, but I believe this new act by the PNG government is not meant to prevent a takeover of IOC, as long as the government respects the buyer. They are probably happier (or no less happy) with a more experienced, deep-pocketed company like an SM.
I did not claim this act was to prevent takeover of IOC. This Takeovers Code amendment protects PNG further from foreign investment in PNG.
Point is, if RDS were to takeover IOC would RDS still want to sell 4.6 T's to XOM? Don't think so. Would a SM be keen on running IOC's refinery and problematic retail distribution? A delayed or scrapped PNG LNG expansion would not be in PNG's best interest. Best outcome for PNG looks like both PNG LNG expansion and Gulf LNG Project as well as IOC's continued dedication to refining, distribution and community support.
At worst, I view this Takeovers Code amendment as protection for IOC's sovereignity.