'jft310' pid='39312' datel Wrote:Its interesting RJ does not mention Total by name. Could??? is it possible IOC cuts a deal with Exxon for train 3,4,5 ???. Gets a payment upfront a nice slice of LNG participation of 25-30 percent?????Just an idle thought.
Agree JFT; one has to be nearly blind to not see how O'Neill and NEC are strongly backing OSH and that IOC and Total were caught off guard with the OSH purchase of the Pac LNG interests. The fact that O'Neill removed both Duma and Polye in the last weeks is highly indicative. The government "needs" the ownership in OSH to help fulfill some of the LT goals of having stong and lucrative government owned entities. O'Neill strongly made this point again in December when addressing the group at the PNG Mining and Petroleum Conference. He again mentioned Petromin as a model. For these things to happen they need to maximize cash flow with least cost/investment. It was clearly stated by O'Neill on Friday that Polye was removed because he would not sign off on the UBS loan for the government to buy into OSH even though O'Neill and NEC approved of it. It's pretty widely believed that this has Exxon prints all over it.
I think the fact that OSH is letting some license options expire and drilling of P'Yang etc is basically on hold points to the anticipated drilling results that IOC has started. It's also quite likely that the end of March will come and go with no deal signed with Total because of all of this. IOC and Total may end up closing on their deal, but it will be surprising if there aren't some things they will have to agree to regarding PNG LNG. And OSH's first loyalties are most likely to the PNG Gov and Exxon. They and Total have really done very little together and Total knows that OSH it a critical player as far as having the government's backing. Again, just look at O'Neill's own words last week when he spoke of the importance of the government's "need" to maintain an investment in OSH.
One can talk to WA and get some info, but he can't be the only source for what is going on at the moment.