TOT Slides

[Stavros]

<< JFT: Interoil is a complicated sorry that requires work . Gotta sweat for your equity . The Total payment is not tied to oil or lng prices but MR Market treats us if the payment is tied and then there's this size of the asset issue and thus the payment size is what is holding us back .That's the major problem per multiple analyst's the payment size and they believe it gets resolved and the stock price rises . See their target prices and reasons why. They also believe we build a 2 train plant with differing completion dates . >>

"Differing completion dates" referred to by owners and analysts refers to staggering the completions and startups by several months (no more than 12 months). They use this staggered approach if they think it will be difficult to get sufficient labor at the site to construct two trains at the same time.

If you recall, the PNG LNG Trains were slightly staggered but only a few months apart.

In the case of TOTAL's Yamal project, there will be 3 trains (each 5.5 million tons LNG) being built in the frozen-beyond-all-belief Yamal Peninsula in Siberia. Those will be staggered by years.

So if TOTAL staggers Papua LNG, they may do something like the following:

1. Order two of each piece of equipment (compressors, turbines, heat exchangers, distillation columns, pumps, etc) at the same time to get a discount. Have them fabricated and delivered to the site about 8 months apart
2. Begin the site work on Train 1 - clearing, leveling, piling, roads, etc
3. Move the site crews to Train 2 when Train 1 site is finished and repeat. Site crews are disbanded when Train 2 is completed
4. Begin the civil works on Train 1 - foundations, etc
5. Move the civil works crews to Train 2 when Train 1 is completed
6. etc

Personally, I don't think they'll stagger the Papua LNG Trains by more than a few months.
UNLESS ... perhaps they copy the PNG LNG design and build Train 1 of Papua LNG AT THE SAME TIME as they build PNG LNG Train 3???