Something to think about

[Getitrt2]

Thylacine, I agree the government will continue to play a major role in all this, but I don't think they will try to force commercial decisions on the parties in play now. They do have a vested interest in OSH through the stock ownership, but they really have that through their 22.5% options in all the projects. I think they would want to see the most overall development as possible through multiple strong parties, and would strongly suspect that their ideal scenario now would be to have Total proceed to build a separate two train LNG project based on PRL 15, with a little gas diverted to domestic use, and with possible future expansion, while Exxon finds ways to expand PNG LNG with other IOC and/or OSH gas. I think OSH has made a very smart move here, including taking advantage of the government's desire to maintain some ownership after losing the IPIC shares, that will enhance their growth and profitability for many years to come. I'm sure they will exercise as much influence in their interest as they can, but I think how much they can exert over project manager Total and upstream operator IOC with 17.7% is very limited. Exxon could probably disrupt the direction if willing to quickly come in with enough money and strategic benefit, but apparently are not; and I doubt the government would favor that anyway. Therefore, I think IOC will move as quickly as possible to close and assuming likely cooperation from Total will be able to get its best deal now one way or the other, given what has transpired with OSH and the changes from that.

I sure would like to see the drilling start asap, and I think they are doing that.