'Palm' pid='7387' datel Wrote:So it IS that simple then Tredaddy? Well then let's just go enjoy the rest of our Saturday and consider this matter closed. The End. Hohoho
My thoughts:
I think that Mitsui will op in for the full 5%.Assume the $22 Billion number for the value of E/A were right well at 5% IOC double $500 million. Since the bids have tripled well the $22 Billion may need some play. Thats a buyin. Part of the 32%???
IOC needs cash to pay for their infrastrure builds at E/A. One of the larget is the pipeline cost. I think Exxon will do an offtake and part of that offtake will be a $100 miilion for IOC to build a peipeline from E/A through the new wharf and to the Exxon T. IOC cost for E/A infrastructure could approach $500 million.Roads ,wharfs, building etc.
I see a selldown but not all the cash upfront of E/A assets 25-32% range area.Using PRE selldowns with prices $3 plus seem right.
IOC will need $500 million for their part of the PRE deal to drill the wells and thats what Bonkie computed that IOC needs to have to complete the PRE contract.
On one of the calls Collin stated IOC could borrow with todays assets $600 million. Before booking assets from an FID.Then IOC could borrow more of course.
The Japanese have offered to fully finance the IOC LNG plant foe 1/4 of 1% a year in exchange for guranteed offtakes. Source a Harry CD from an RJ Institutional Call.