04-07-2016, 02:08 AM
Just a little refresher on Hession's performance:
- Pulled IOC out of exclusive negotiations with Exxon for E/A which presumably would not have provided IOC with any interest in the potential LNG plant
- Guided IOC to a superior deal with Total which provided a $400 million up-front payment, an uncapped interim resource payment, additional payments at FID and first gas and final resource certification, and, very importantly, a significant share of the potential 2-train plant
- Transitioned IOC and the IOC BOD from a entrepreneurial-focused operation to a more business/monetization-oriented company
- Sold off the midstream IOC refinery and downstream distribution business for over $500 million at the top of the oil price market to provide funding for both exploration and appraisal well program
- Successfully defended IOC in international arbitration against an OSH attack on the IOC/Total deal
- Consolidated IOC office operations and trimmed much excess spending from the IOC budget
- Developed and guided IOC through an extensive seismic and aerial gradiometry program over much of IOC's extensive holdings
- Successfully provided for all necessary objectives to hold and retain all IOC leases in PNG
- Maintained a very successful relationship with PNG locals, its central government, Prime Minister, and Petroleum Ministers
- Worked with Total to get central processing plant for E/A development located in Gulf province
- Sheparded IOC exploration to highly successful discovery wells at Raptor and Bobcat
- Guided IOC through very successful appraisal well program at E/A with results showing larger field than expected; connectivity between A1, A5, and A6; and more dolomite than expected at A5/A6
- Ushered IOC to the brink of a very likely highly positive resource certification and interim resource payment
- Has presumably been in negotiations with other companies regarding sell-down of Bobcat and/or Raptor
- Other than media speculation, has not indicated in any manner any intention of entertaining the sale of IOC to any other company
On the downside:
- Wahoo was a disappointment
- A4 and A4-ST1 had many delays and problems that might have been avoided with use of better equipment (though Orubadi shale was a major reason as well)
- Communication with shareholders and the public could be better (though this could well be a distinct strategy to not provide potential takeover companies with information)
- Officer and board equity positions in IOC could be higher (though this is actually a BOD issue based on its restrictive Insider trading policy)
- Has failed to request that the IOC BOD diminish the bonus provisions of his employment contract . . .