And then there was Total

[jft310]

pickboone•1 hour 42 minutes agoFlag

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2 material positive developments overnight -- Total and Mulacek comments
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PM Peter O’Neill issued a media release last night indicating that “Executives of global giant, Total met with Prime Minister Peter O’Neill today and declared their keen interest in oil and gas exploration in the country” and “Mr O’Neill welcomed their keen interest in investing in the LNG sector”. Total’s meeting with O’Neill certainly seems to confirm Platts assertion that it, along with XOM and RDS, is one of the three majors bidding for a stake in IOC’s project. It is likely that O’Neill’s approval of Total’s investment in InterOil’s project was a final step required before a deal could be closed, so it may trigger closure in the coming days. Also, O’Neill’s media release extinguishes the risk that the PNG is trying to strong arm InterOil into accepting an inferior bid from RDS. This is a very positive development that likely portends to an imminent deal and a very healthy and fair value ascribed to the resource.

The second development is an article issued in PNG Industry News last night titled “Mulacek on his retirement: exclusive” in which Mulacek stated, “This timing is now, and any new CEO would like upside and input to gain respect by shareholders. If I wait until the transaction is closed, and the stock runs, then he has a flat position while the project is under construction and a selfish outcome that hurts me and everyone.” Mulacek is asserting that he expects the stock to run up significantly upon the announcement of a transaction, providing the first confirmation from an InterOil executive since the 2/28 bid deadline that the winning bid values the company well in excess of its current market cap. Also, in the article, Phil conveys that the CEO search referenced in the company’s press release was initiated a while ago, and it now seems there may be another immediate positive catalyst on the horizon with the announcement of a new leader. If a credible CEO replaces Phil in the coming days, institutional capital could flock to InterOil's stock

[CesiumFormate]

Is it possible that Total thinks they might be losing and came to make a final appeal?

[Poman]

Sounds to me like O'Neil is saying to Total: Sorry guys, you have a good partner in Oil Search. PRL 15 is going to one of your sisters.

[Palm]

Total is doing their pitch to Oneill on this project and part of that is they have partnered with OSH and they want to continue with that and do this project ("on their own"). Oneill is simply acknowledging the fact that they have partnered with OSH which carries weight with the people of PNG. They are not just coming in to screw the people; they are working with a "local" company in OSH and that is important.

Oneill and Total must abide by the CAs; they cannot state they are bidding on Gulf LNG. That's why shorts have played that game of saying "They have not said they are bidding so they must not be." It's because they can't.

[jft310]

All about the money honey and helping Exxon and those PNG workers staying on the Exxon job site. Who will work with Exxon and pay through the nose for IOC's assets??????Who does O'Neil really like is the ?????

[ebster123]

If that is the case Total may be taking a flight back to Paris and come back with a takeout bid.

[cybersssss]

Theoretically if xom wins the bid and total or shell still want the company, they need to be sure that oneill and the government will play ball with them if they decide to make a run on IOC.

These developments of the government speaking to all the parties involved is fantastic fir png and for IOC.

So pm steps aside, new shareholder rights plan, rumors thats shell is the winner, and total speaking privately with oneil. Dot dot dot dot. I would be surprised if someone did not make a run at the company. Perhaps total just wants to be sure oneil will work with them if they buy it out. Though I would be happier long term if the string if pearls were allowed to play out.

Exciting times.

Soon

[Tree]

All about the money honey and helping Exxon and those PNG workers staying on the Exxon job site. Who will work with Exxon and pay through the nose for IOC's assets??????Who does O'Neil really like is the ?????

9000 PNGinians are currently employed at PNG LNG and without expansion their jobs are gone by early 2014 at the latest.

[jft310]

If Tree and I see the need for those 9,000 workers to keep working don't ya think O'Neil does also?? The master plan for PNG must be add on to Exxon with IOC's NG there is no other NG available and to start to build a CSP ASAP so IOC can get those condensates and Exxon can get its NG and to build out the modular IOC LNG plant with maybe a FLNG mode also. That should be clear to all. Which means cash flow for IOC in two years vs 3-4 years