'Tree' pid='74354' datel Wrote:
'cybersssss' pid='74352' datel Wrote:i would say that of total did not at least try to buy out the value of their contract it would be fiscally irresponsible of them. It is not IF they will, it is how could they NOT bid?TOT's move here will be dictated on the interest they've received in their pre marketing efforts of Papua LNG's LNG and TOT's internal E/A resource #s.
If the sales interest is weak, TOT may just cut bait, sell their E/A stake to XOM. This eliminates bid war to lose, eliminates future payments due to XOM and saves face by selling to XOM at break even.
If sales interest is strong and E/A #s are high TOT will bid and will win.
I can't see this as a sales decision so much as a huge marketing decision. Do they want to forgoe this very, very promising foothold into the massive Asian Pacific market? If Total wants to abandon their strategic plan for the Asian Pacific and simply give their piece to XOM then XOM will just have to pay IOC as soon as the certification gets done.
Big delay though and the government would NOT likely be happy.