'Getitrt2' pid='43587' datel Wrote:Who would they sell it to? Also, with the refinery they control a large, long-term, valuable land lease of a previous Australian military base with a deep-water harbor.
Don't know the 'who', it will likely be a regional refiner or maybe even PNG itsself with a major stake. Asia refiners fmostly ollow the 'Downstream Integration' model.
Downstream integration. Dedicated marketing channels take more than 50 percent ofthe downstream integrated refiner's production. These trades are secured either through equity or long-term contractual arrangements."
North American refiners largely follow the 'Vertical Integration' refinery model. This was Phil's model with goal becoming a 'vertically integrated energy company'.
Vertical integration. Fulfilling the requirements for upstream and downstream integrated refiners at the same time, the vertically integrated refiner is able to capture value by making the most of advantages across the value chain.
With IOC's refinery market being largely 'on island' with pricing controls, vertical may not be the best model. Likely IOC would keep a minor refinery stake and strike a licening deal for retail outlets and goodwill of the InterOil name.
More value to us in exploration and LNG.