The last ditch - The National "quotes' Duma

[Palm]

Agree, I think Frday will be just fine.

[CesiumFormate]

If you are long, what happens tomorrow does not matter. The shorts will try to scare us one more time. Good Luck! They have not been successful all week. Sleep tight!

[sfiaes]

"grossly misleading"

Think about it, does that sound like Duma?

I don't think so.

There is no news here, just the intent to mislead.

[ArtM72]

JFT's reiteration of the Pickboone take seems wishful thinking to me. My belief is that Duma is like one of those chiefs up in the Highlands who claimed no limit to the gas their province could provide or the power they hold. Now, after they've almost completed the LNG plant, XOM is in need of resource.

Duma is at this point, in the Texas vernacular, all hat no cattle. There is no way O'Neil will stop Gulf from being built...political suicide. There is no way O'Neil will confiscate IOC properties...international reputation suicide.

Duma is an ass.

[Gator]

Six and a half trading hours. That might be all the time that remains before we get real news, not some blowhard making an "accurate but distorted" statement. The way the value of the April calls spiked in the final few minutes today, I am not worried. Are the shorts? 6 1/2 hours...tick, tock.

[Michael]

I would anticipate another short attack this morning. You have to wonder whether someone in Duma's entourage is providing information supporting the shorts timing in the near term.

[Palm]

Best bet is that it's our good old friend in Petromin who is not helping get the job done, and this just might give O'Neill and NEC what they need to take some actions. What Duma says is correct as far as "The state negotiating team is yet to report back to NEC through the ministerial gas committee on the outcome of these negotiations." This group is the one charged with reporting back to the NEC through the Gas Committee which Duma heads. The State Negotiating Team is "headed by the Secretary for Petroleum and Energy, and comprising the Departments of Treasury, Justice and the State Nominee Petromin, to negotiate terms of the 50/50 proposal and report to cabinet, through the Ministerial Gas Committee by 30th November 2012."

This Negotiating Team has failed. O'Neill is the government's voting member for the State in regard to Petromin.

[TxPm]

Short attack 101 this morning. I wonder if we can expect another "tweet" from Citron & Co today.

[Palm]

I think these statements from IOC's presentation at the RJ conference say a bit:
" InterOil has had constructive meetings with a number of PNG State departments, including the Department of Petroleum and Energy, the Department of Treasury, the Department of Justice

and the Prime Minister’s Office"- This is the Gas Committee

" Negotiations between the Government and InterOil are ongoing. We expect to complete the documentation required to proceed with the Gulf LNG project with our new partner."  This is the Negotiating Committee responsible for negotiating the 50/50 option for the government.

I think the Negotiating Committee (of which Petromin is a part) is having a hard time getting that option figured out.  Mainly how to pay for it.  This is why recently we have heard from management that PNG will likely only take their normal 22.5% because they cannot right now get any additional ownership funded.  Anything above the 22.5% must be at commercial rates and the coffers for that are a bit empty right now.  They must focus on infrastructure and programs.  Also still contend that the O&G Act specifically says that anything above the 22.5% can only be owned by Provincial and/or LLGs; not the State.  That means Gulf and/or any LLGs must come up with the funding.  We know Gulf especially around IOC's project is sparcely populated and they especially need to spend money on infrastructure now.  And O'Neill stated that plainly the other day on his visit.  He said they must spend money now on infrastrure and not wait for resource projects to come online to get the infrastructure done.  Down the line they may be able to spend money on increased resource ownership, but not today.

[efi426hemi]

Hey Palmeramadama,

Maybe the government had a plan to buy the gas at a 1.50 per M, but have heard that deals are in the 3 buck range putting the kibosh on the extra gas vision. *Shrugs* Guess we will find out in the couple weeks.

Keep it on Ice!

Hemi