11-01-2013, 11:51 PM
Well-placed sources said the latest twist is that InterOil has made new proposals to ExxonMobil that the US player is taking its time to absorb and respond to.
In effect, InterOil’s new management would like to receive more in exchange for their 4.6 Tcf of gas from Elk-Antelope than originally envisaged.
It is understood the initial terms were based on a sales and purchase agreement of the gas, but InterOil now favours a traditional farm-in type scenario, and that an equity stake in any subsequent LNG train would also be desirable.
PNG-based sources said that, despite the apparent impasse, there is cautious optimism that a deal can be concluded before December.
The consensus is that InterOil is in a strong position, for several reasons.
"InterOil has, evidently, a significant gas resource and the financial returns on an expansion train at PNG LNG are lucrative.
Other LNG majors including Shell and Total are understood to be waiting in the wings for Elk-Antelope gas, and the government is anxious for a deal to be finalised.
If ExxonMobil is successful in securing Elk-Antelope gas, it looks likely that those reserves will underpin the third train at PNG LNG following recent revelations by project co-owner Oil Search that resources such as P’nyang and Juha North and the Hides field expansion are still two years away from being ready for a final investment decision."
In effect, InterOil’s new management would like to receive more in exchange for their 4.6 Tcf of gas from Elk-Antelope than originally envisaged.
It is understood the initial terms were based on a sales and purchase agreement of the gas, but InterOil now favours a traditional farm-in type scenario, and that an equity stake in any subsequent LNG train would also be desirable.
PNG-based sources said that, despite the apparent impasse, there is cautious optimism that a deal can be concluded before December.
The consensus is that InterOil is in a strong position, for several reasons.
"InterOil has, evidently, a significant gas resource and the financial returns on an expansion train at PNG LNG are lucrative.
Other LNG majors including Shell and Total are understood to be waiting in the wings for Elk-Antelope gas, and the government is anxious for a deal to be finalised.
If ExxonMobil is successful in securing Elk-Antelope gas, it looks likely that those reserves will underpin the third train at PNG LNG following recent revelations by project co-owner Oil Search that resources such as P’nyang and Juha North and the Hides field expansion are still two years away from being ready for a final investment decision."