Western Province: Eaglewood license shows the O'Neill way

[Palm]

This licensing I think shows how O'Neill and NEC see development in the future. Note that the "strategic" designation is very important because it means infrastructure and things like CSPs are to built for use by aggregated resources. This shows how serious they are about maximizing plants/infrastructure to minimize investment and maximize cash flow. IOC's license corridor development likely will have different players owning PRLs but sharing "strategic" licenses. If you look at what Eaglwood says, they have two PRLs (PRL 28 and PRL 21) which have different players (except for Mitsubishi), but they will share a CSP and pipeline under terms to be worked out. It could be that that type of discussion is going on now between IOC, Total, OSH and Exxon with the government holding the "heavy" of strategic licenses over their heads.

I don't think there will be that kind of shared infrastructure involved with PRL 15, and I do not think Exxon is involved in the discussions on it now, just IOC, Total, and the government, and maybe OSH on the periphery, with nothing hanging over their heads, except perhaps unneeded urgings to "get it done".

I do, especially with OSH in the picture; that wasn't planned and OSH clearly stated after IOC and Total made their deal that they were still in negotiations.  And if the government wanted to just "get it done", O'Neill would have been singing praises about the deal.  Instead he has said basically nothing.  Duma talked about it and said he wanted it fast-tracked, but O'Neill's only real mention of Total and IOC was after the government buy-in to OSH was figured out and OSH had announced that they were buying the Pac LNG interests.  He said that he "understood" that OSH was talking with IOC and Total.  That's it.  Then he sacks Duma and Polye.  He is in charge and he has NEC support in this consolidation of resources change.  He and NEC granted the "strategic" licenses to Eaglewood contingent on all parties figuring out how the CSP and Pipeline licenses can be shared.  He said he would move projects this way back in December and he has just done it in Western Province and he has full support of NEC and the PNC coalition.  Why would he do any different with IOC on PRL 15 and forward?  How do O'Neill and the NEC explain the exception allowed for IOC/Total to those who are pouring in investment dollars just as IOC/Total have/will?  The thing is, it makes good business sense.