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"And I've sat here today and told you we'll do this deal by the end of the year, yes." |
Q: How can Hession can make that statement?
A: The deal is done
How so? Here's my take.
IOC and XOM have bottom lined their SPA agreement for train #3 expansion with all details of upfront cash, staged cash and PNG LNG % ownership. Per PNG LNG PA, existing project partners must commit or pass on expansion participation, these partners have NO E/A gas integration into PNG LNG for expansion veto power. IOC/XOM agreement is now in PNG LNG partners hands and they were given a deadline by which to respond. Per Hession that deadline is prior toY/E.
PNG LNG partners have final say as to deal partner make-up and deal partner make-up is required prior to the IOC/XOM SPA agreement becoming a 'Material Event'.
A deadline for partners to respond exists but they can also respond prior to deadline, hence, the "each day can be the final day" comment by Hession and why Hession could state "partner is not chosen" in CC.
Partner is selected, minimally XOM, as Santos, Nippon, OSH and PNG Gov't are weighing in now if they are 'in' or 'out' of expansion plans with terms cut between IOC/XOM for their prticipation.