'jdeo1969' pid='47868' datel Wrote:
'Getitrt2' pid='47864' datel Wrote:
'jdeo1969' pid='47845' datel Wrote:
'Getitrt2' pid='47843' datel Wrote:
'jdeo1969' pid='47827' datel Wrote:
I would appear the Citi OSH report supports my viewpoint regarding expansion costs with EA Gas:
"PNG gas cost curve supports expansion from Hides/P'nyang/Antelope only — Based on our benchmarking analysis, we have defined a cost curve for known gas resources in PNG under various development scenarios (backfill/expansion), which we compare to the price an LNG project could pay for gas. While Hides & a 2 train Antelope could provide an attractive development, particularly when combined with T3 cost synergies, we think most other gas resources are less attractive and would be marginal if developed to underpin expansion trains.
While economics underpinned by 2P, expansion needs 1P — ExxonMobil has historically marketed offtake on a 1P reserves basis to maximizes the value of the molecules. LNG expansion is likely to hence need 3-4tcf of incremental 1P reserves per train, thus we expect Train 3 sanction will require both Hides GWC upside and P’nyang. Beyond these resources (ex Antelope), we think other resources are marginal to develop as expansion (T4), though could be developed as backfill gas."
As far as O'neill comments are concerned, I am just reading into what he says. Why do you think Hession took the Total deal? Because it was better than what Exxon was offering. it preserved the upside. Why did he get out of negotiations with Exxon? Because they had no leverage. They do now, and Total doesn't have to build an LNG plant. They can partner with XOM/OSH on the PNG/LNG project along with IOC. If it is a win, win why not? And yes, it is speculation. This entire message board is speculation. That is what we are left with right now in a news vacuum.
Good luck longs
Jdeo
Regarding Citi and OSH, see elsewhere.
"As far as O'neill comments are concerned", if he did not say it, don't say or imply he said it.
Regarding Total and that deal, you are right in that it was "better than what Exxon was offering" and "preserved the upside". It also ensured development of ALL of PRL 15 (not just part of it as Exxon was after for PNG LNG) with an LNG project with substantial IOC ownership, which also provides expansion/development options for additional IOC gas from PRL 15 AND/OR elsewhere, all with the kind of strategic partner they were looking for. You say IOC had no leverage with Exxon then. Once Hession was able to bring Total and Shell back in, he did have leverage, and Exxon did not choose to bid to win. Why would they now, and how could they offer what Total did, which now has closed contracts? Total did not do this deal to build an expandable LNG project with the ownership it has and huge future potential, to turn around now and degrade its project by selling some of the gas for it to Exxon, unless they have not enough or more gas than they can develop, not likely at all from E/A or anytime soon, but which if the latter would be a supplemental deal and not a "rather than" like you're talking about. Management has closed and moved ahead with the deal they see as the best long-term strategy for IOC and its shareholders, and based on what I know now I agree with that, as I have for a long time, as unhappy as I am about what happened last year. Trying to reverse all this and start over in the direction you are arguing for seems to me simply ridiculous. You need more than "speculation", as you say, to support that. I strongly disagree that, "This entire message board is speculation", and that is all "we are left with right now". This forum has a great deal of solid, factual, rational information and analysis, and that is what you would need to provide more of. Am I missing something of that nature?
Getit,
I am not saying it WILL happen. i am merely arguing that a possibility does exist, and giving my opinion as to it's merits. i still don;t know what you mean about my comments being harmful. I stress that either outcome will be a good one for IOC. I have never said once that if EA gas does go to PNG/LNG that it would be a bad thing, in fact it would be a good thing. I referenced the deal in December because you asked me to explain my line of thinking regarding why Exxon would pay more now. In painting that picture, I found it relevant to explain how we got to the deal with total. I have no interest in rehashing it either, but I won;t ignore it when it has a bearing on a discussion here. Yes, the Citi report is confusing. I read it to state that EA would be a financially attractive expansion. If I am wrong, ok, that's fine. I am not hardline here about the gas going to PNG/LNG. Again, I am just pointing out that there are still signs to ME it is a possibility. If you disagree, again, fine. You just seem to have the tone here that anytime I bring this up, it is harmful? How? PLease explain that comment. Regarding speculation, I am not trying to say that there are no facts on this board. If it came across that way, I apologize to every member and reader here. But we all speculate from time to time on topics such as this. JFT speculated earlier that Phii's body language implied there were buyout offers on the table. how is that better than my opinion of what Oneill's comments may mean? I think you should stop giving me advice. I'm not trying to be rude, but I don;t care what you suggest I do. it means nothing to me. I am here to have civil discussions and learn something that will help shape my actions going forward. This topic seems to be a hot button for you, and I have no interest in pushing it, yet I would like someone to explain to me how having two potentially good outcomes is worse than one potentially good outcome.
jdeo: You say, "I am not saying it WILL happen. I am merely arguing that a possibility does exist". Actually, I'm afraid that is not really true. On Yahoo this afternoon you posted, under "jdeo1969":
And now you say this topic seems to be a hot button for me (maybe so), but you have "no interest in pushing it"??!!! Give me a break!
I guess you could try to explain by saying you meant that you are not saying it HERE! I don't understand. I guess you are so unhappy about where you are on the stock (understandably), you think promoting that idea while arguing "quicker monetization" (not very convincingly, imo) might help the stock. Of course, some people might call that "pumping" the stock. On the other hand, surely you would not be intending to do that, since that would be rather hypocritical after recently telling JFT to "stop pimping, pumping and polluting the stock and stick to facts", if I remember correctly. That chastizing of JFT by a fellow SHU member is now being quoted on Yazoo as a tool against JFT and IOC. You say, "in fact it would be a good thing". I'm still waiting for enough of those facts from you, but I think I would prefer to have the whole thing dropped. You asked about my comment about arguments for it being maybe harmful. I have explained repeatedly at length why I think trying to send or sending E/A gas to PNG LNG would almost certainly be an inferior deal to Antelope LNG with Total and is extremely unlikely; and I think the more it is promoted, predicted, and speculated about, the more confusion and controversy and uncertainty it could create, especially with potential buyers and others not as informed as most of us, which is normally not good for a stock.
At least we agree on the Citi report being confusing, as little as that is, but all the more reason to read it more thoroughly and carefully, like Tree did. In the report, they do clearly define "three scenarios", i.e. "backfill purchase", "T3 supply", and "Expansion supply", with the latter meaning "gas used for a new LNG development with no infrastructure synergies", and labeled a 2-train Antelope LNG as T4 or Antelope T4/5, believe it or not, which would have helped you understand it properly.
Since you bring it up, I do not think your comparing your distortion of what O'Neill said, intentional or not, to JFT's effort to interpret Phil's body language after asking him a tough question in person, is appropriate or relevant. It certainly is irrelevant to me on this topic.
I am not "trying to be rude either", and your comment on "advice" is also mutual. I am certainly not trying to give you or anyone orders. Believe it or not I actually am trying to help you, and others, "learn something that will help shape my actions going forward", as you say, learn things myself, which I often do, and trying to improve what is on SHU and help the stock as deserved imo. I also guarantee you, and others who would like to be hearing less from me, which is mutual, that I would much prefer spending much less time at it, but keep seeing things I feel a need to respond to, although not expecting to always be 100% correct on every detail, in which cases I want to be and am glad to be corrected.
Getit,
You might want to check yourself on a few things:
A) I haven't posted on Yahoo in several months. Obviously that was an imposter
B) I didn't make those comments about JFT. It was someone else and it would be easy to go back and read it to see very clearly that is the case.
Please read what I am saying before you leap to conclusions. I don't want to argue. For me this is closed, but I felt the need to reply that you are 100%, completely and utterly wrongly attributing both A and B to me.
Good luck longs
The real Jdeo
It does appear you are due an apology on one or two specific mistakes, and I am actually glad to find that out, having been disappointed to see them attributed to you.
A. I did not know that an imposter could now post under your exact id on Yahoo, and have no idea how I could have independently checked or determined that. Nevertheless, I regret citing it if you did not post it, and I have no reason to doubt you on that.
B. Those comments on JFT were quoted and attributed to you on Yahoo by "mspieks". I did not remember where they were on SHU and did not take the time to track them down to verify the poster. However, I should know better than to assume mspieks is correct on anything. Therefore, I apologize for mistakenly attributing them to you on SHU without independently verifying the poster myself.
I am glad you pointed out the errors.
I guarantee you I do NOT "leap to conclusions" before reading what you are saying, carefully, more than once. That is a false accusation on your part, and not the first if I remember correctly. "Closed" with this is good with me.