'petrengr1' pid='74612' datel Wrote:1. They would be buying back the SPA agreement, removing the risk that they may have to pay Exxon $1.00/ MCF for an unlimited resource volume.2. They could probably buy IOC for less than they may eventually have to pay Exxon ie unlimited upside on resource payment.3. They could proceed with Papua LNG and benefit for 20 - 30 years of LNG sales. If they proceed with Papua LNG they would no longer owe the FID payment, the first cargo payment and would not have the risk of having to pay more for the certification after production has commenced.4. They would get 4 million acres, 35 prospects including Triceratops, Bob Cat and Raptor. That would give them a use for the millions of dollars worth of seismic and gravity data that IOC has acquired.5. They could continue to benefit from the work they have already done in France and with the people they have brought to PNG. If Exxon prevails they will probably be reassigning personnel.6. They would not have Exxon and OSH controling where the gas will be processed.There are probably many more reasons that you can think of.
Pet -Good am to you . All EXCELLENT points,sir .As I ponder the OSH/IOC merger offering,I believe PB and PP decided to just "throw something up against the wall and see if anything sticks" . Since that now appears to be a failure (with the XOM offer coming in) , they will now consider "plan B" .
Art ,in another thread talking about our pearls mentioned " that string,if it in fact exists," ( I believe he was speaking about TOT being able to become the dominant player in LNG in SE Asia ) . Well it seems to me ,that with TBR surrounding E/A that the string is there ! At this time we just don't know how long that string is or just how large some of these pearls truly are . ...[in our 35 prospects ]
In future years,someone will write a story (or book) about the PNG reservoirs that Phil uncovered when he discoverd E/A . It will probably be an awesome story .
Good health to you and yours .