07-10-2014, 08:07 AM
'calvin grad' pid='46681' datel Wrote:I feel sure that IOC is not seeking to sell anything to OSH.
It takes much less capital to bring liquids (oil) to market than natural gas.
There are several possibilties if they find gas at Wahoo. It is well past 30 miles from EA. They could let Total and Osh buy in and then sell the gas to Osh or create a separate facility. Or IOC and PRE could have a separate production facility. The simple and probably economic thing is to sell the gas to OSH for their existing plant.. Would rather they dont need to make that decision when they are pressed for cash
It would seem more logical that IOC/Total would negotiate an ownership position with PNG LNG for a third unit there, with the competion/fallback being Unit 3 at Gulf LNG.