Dave's premise is absurd.
IOC-PacLNG and IPI owned PRL15 and were governed in it's commercialization by E-A JVOA. A stake sale by any PRL15 JVOA owners integrates new owners into the JVOA.
IOC sold a gross 40.1% PRL15 stake to TOT and PacLNG sold 100% of their stake to OSH.
The arbitration results will dictate participants and the route but not the interests in PRL15 and the LNG project of JVOA participants. Interests are set.
Elk-Antelope Joint Venture Operating Agreement
Singapore and Port Moresby, March 28, 2014: InterOil (NYSE: IOC; POMSoX: IOC) has received notification from Oil Search (ASX, POMSoX: OSH) of a dispute under the Joint Venture Operating Agreement relating to Petroleum Retention License 15 in Papua New Guinea. We will be responding in accordance with the terms of that agreement.
Any proceedings commenced by Oil Search seeking to set aside the transaction completed with Total S.A. (Paris: FP, NYSE: TOT) on March 26, 2014, in which Total acquired a 40.1% (gross) interest in PRL 15, will be strongly defended.
http://www.interoil.com/iocfiles/documen...elease.pdf
Insight into the commercial agreements and ownership rights negotiated prior to a sell -down, resulting in an SPA agreement was offered June 25, 2013 at the AGM. To believe and to argue there is no 'New PRL15' JVOA governing IOC's LNG participation rights which are stated around 30% is beyond absurd.
"At the meeting a management presentation was provided with an update on our business and strategies. Highlights regarding our previously announced proposed transaction with ExxonMobil Papua New Guinea Ltd. in the presentation include:
- The sell-down is progressing on schedule as planned.
- InterOil signed a detailed term sheet with ExxonMobil Papua New Guinea Ltd. (EMPNG), after major items, both commercial and technical, had already been agreed.
- EMPNG, InterOil and Pacific LNG are engaged in finalizing a binding agreement.
- The proposed transaction would monetize sufficient resource to cover our share of infrastructure costs and fund exploration while retaining maximum upside for IOC equity interests.
- Post-negotiations, InterOil and Pacific LNG have clear path to resource monetization.
- The purchase of an interest in PRL 15 is not contingent on resource recertification.
- InterOil believes the best strategy to develop its resources is a dual-development path; which includes EMPNG at its PNG LNG facility, and an LNG facility in the Gulf Province."
Equally absurd would be the argument that OSH cut a $900 million check, currently has no PRL15 JVOA LNG rights and is operating on a handshake agreement.