Remember this article from last year?

[Tree]

Plan all along was to feed XOM expansion and host a 2nd LNG Project,........

Hi Tree,

Just a bit of wild speculation on my part.

PNGLNG plant was originally designed to take 5 LNG trains.

Now let us make a wild assumption for the moment and assume the possibility of XOM getting a slice into PRL 15 from the current stake holders somehow (some sort of sell down).

Let us also assume PRL 15 proves up enough gas for 2 LNG trains and the current partners of PNGLNG scrape together and prove up enough gas for one train from their own resources.

If these resources  together providing enough gas for 3 trains (the extras what PNGLNG is designed for) and with XOM also a stake holder in PRL 15, the probability of the E/A gas being directed to PNGLNG plant would be  high.

This would give IOC a stake around 15% into 2 trains at PNGLNG and some more money also from XOM buy in. It would  leave all the other IOC gas resources looking for a stand alone LNG plant at a later date when they get proved.

It would bring E/A gas on line faster than otherwise.

It would increase the PPS of IOC possible faster than any other development path and bring it ramping up to $300 to $400 mark within a few more years.

(or am I dreaming too much?)

EDIT: UGGGG jft310 .... you were too fast for me.

Syd-

Now let us make a wild assumption for the moment and assume the possibility of XOM getting a slice into PRL 15 from the current stake holders somehow (some sort of sell down).

There is no 'somehow' about it.  Gov't has the right to take 50% equity in PRL15, at arms length.  If O'Neill wants XOM in PRL15, he simply agrees for PNG  to match TOT terms at arms length and assume up to a 50% PRL15 stake, then flip this chunk above Gov't back in of 22.5% immediately to XOM.  This stake would come from TOT's share IMO.  Gov't controls JV makeup and will control JV makeup.  Gas goes where the Gov't determined JV dictates.  If you trust GLJ and GC and Dave Holland's opinion, a shortage of gas feeding only PNG LNG expansion is not possible.  A bull will plan on 3 PNG LNG trains and a 2-3 train standalone plant FID.

Now let us make a wild assumption for the moment and assume the possibility of XOM getting a slice into PRL 15 from the current stake holders somehow (some sort of sell down).