02-02-2014, 07:50 AM
Something is going on that has made Hession conclude it is better to NOT close the minority buyout by Jan. 31st and take the hit for not delivering by 1/31. The minority group cannot hold IOC over a barrel because that is effectively shooting the golden goose. So I lend no credibility to the theory that they are putting the screws to IOC. We have OSH noted as a buyer by multiple sources, they are linked to Total, PNG, and we know PNG LNG is looking for gas to expand and dovetail into a third train. Throw in the Woodside contingent that is now running IOC and the pot is stewing with opportunity. I wouldn't be surprised to see the government get cash for some of their PRL 15 stake and use the proceeds to pay off the loan on their OSH interest together with some renegotiated financing that IOC is bringing to the table from Japan. Lots of moving parts but we have the team and the connected parties with mutual interests to pull it off. The waiting is ponderous but it a very interesting situation that I believe plays out very well for IOC.