The Best Development From OSH Deal (so far)

[ArtM72]

Art, per IOC's news release, "InterOil owns 75.6114% of PRL15 and is in an agreement to sell an interest to Total S.A. The final ownership structure will be agreed with the joint venture participants with InterOil maintaining a material interest in PRL15." Total stated to begin with in December an intent to bring in another partner for 19.3% gross out of Total's 61.3%, and we now have a new partner for about that amount. There is a strong implication in the above statement that the amount being bought by Total will now be adjusted to account for that, leaving IOC with about 30% still or something close to that. IOC may still even buy out the remaining small IPI amount as well.

If that is the case I would certainly be less concerned than I am right now.  However, neither Total nor IOC has said anything to that effect.

[Getitrt2]

Art, I agree with you that is not the outcome I would want, but I do not think that is what the outcome will be. Also, we now have relevant comment from Morgan Stanley:

"The Total deal should close near-term and we think terms would be adjusted to reflect the IPI sale to OSH."

[ArtM72]

Art, I agree with you that is not the outcome I would want, but I do not think that is what the outcome will be. Also, we now have relevant comment from Morgan Stanley: "The Total deal should close near-term and we think terms would be adjusted to reflect the IPI sale to OSH."

Yes, there is no question in my mind these two deals will close immediately and it won't be long before FID on Gulf LNG is reached.  While E/A gas has been derisked to near 100%  IOC's opportunities to profit from the LNG plant have been cut enormously.

I have no faith whatsoever anymore in Hession's ability to create IOC shareholder value and further question his working in good faith for the corporation.  He has yet to deliver on anything he's promised (at least publicly) and I fully expect he'll farm out much of the rest of IOC's PPLs for next to nothing.

[Brew Swillis]

What are the chances some of the Elk/Antelope volumes could be used in the XOM PNG LNG plant? The CEO of Oil Search on this mornings OSH conference call was implying that was a possibility. Would be great to get the IOC cash flows started sooner.

With Oil Search supplying another rig to drill PRL 15 and mentions of trains 4 or 5 it certainly seems so.  Also aligns with Hession's comment:

"This not only validates the value of this world class asset in Elk-Antelope but acknowledges the upside in this asset and the surrounding acreage. This partnership will enable us to tap these energy resources more quickly and cost-effectively – and that translates into real financial benefits for Papua New Guinea and the shareholders of the companies involved."

Oil Search obviously wants to use the lower reserve estimate while negotiating (who wouldn't) but they must believe the upside potential is significant.

[Palm]

That's how I read the comments by Botten also, and the Reuters article posted last night states this is their understanding also. Depending on how all the parties feel is the best use of assets at the time, some of the EA/PRL 15 gas could go to the PNG LNG expansion.

[Brew Swillis]

That's how I read the comments by Botten also, and the Reuters article posted last night states this is their understanding also. Depending on how all the parties feel is the best use of assets at the time, some of the EA/PRL 15 gas could go to the PNG LNG expansion.

Fluid.

[jft310]

On St Martin gone all day I agree with getitrt here!

[Putncalls]

Art, I agree with you that is not the outcome I would want, but I do not think that is what the outcome will be. Also, we now have relevant comment from Morgan Stanley: "The Total deal should close near-term and we think terms would be adjusted to reflect the IPI sale to OSH."

Yes, there is no question in my mind these two deals will close immediately and it won't be long before FID on Gulf LNG is reached.  While E/A gas has been derisked to near 100%  IOC's opportunities to profit from the LNG plant have been cut enormously.

I have no faith whatsoever anymore in Hession's ability to create IOC shareholder value and further question his working in good faith for the corporation.  He has yet to deliver on anything he's promised (at least publicly) and I fully expect he'll farm out much of the rest of IOC's PPLs for next to nothing.

1.30$/MCF for IOC while the Governement gets their piece of the pie from total/buyer is a guve away? That is the price once 5.4+Ts is verified.

[jft310]

Art, I agree with you that is not the outcome I would want, but I do not think that is what the outcome will be. Also, we now have relevant comment from Morgan Stanley: "The Total deal should close near-term and we think terms would be adjusted to reflect the IPI sale to OSH."

Yes, there is no question in my mind these two deals will close immediately and it won't be long before FID on Gulf LNG is reached.  While E/A gas has been derisked to near 100%  IOC's opportunities to profit from the LNG plant have been cut enormously.

I have no faith whatsoever anymore in Hession's ability to create IOC shareholder value and further question his working in good faith for the corporation.  He has yet to deliver on anything he's promised (at least publicly) and I fully expect he'll farm out much of the rest of IOC's PPLs for next to nothing.

1.30$/MCF for IOC while the Governement gets their piece of the pie from total/buyer is a guve away? That is the price once 5.4+Ts is verified.

why do people ignore the LNG plant or plants as OSH stated today and those plants plural will use IOC gas.

[Getitrt2]

Art, I agree with you that is not the outcome I would want, but I do not think that is what the outcome will be. Also, we now have relevant comment from Morgan Stanley: "The Total deal should close near-term and we think terms would be adjusted to reflect the IPI sale to OSH."

Yes, there is no question in my mind these two deals will close immediately and it won't be long before FID on Gulf LNG is reached.  While E/A gas has been derisked to near 100%  IOC's opportunities to profit from the LNG plant have been cut enormously.

I have no faith whatsoever anymore in Hession's ability to create IOC shareholder value and further question his working in good faith for the corporation.  He has yet to deliver on anything he's promised (at least publicly) and I fully expect he'll farm out much of the rest of IOC's PPLs for next to nothing.

Art, what is it that you don't understand about the statements from the Company and Morgan Stanley/Calio indicating that there will be adjustments to the IOC-Total deal, after the purchase of minority interests directly by OSH rather than through Total, to reflect the ownership structure intended by the partners, including Total's portion of around net 32.5% after the new partner and IOC's toward the 30% range? You do not know that "IOC's opportunities to profit from the LNG plant have been cut enormously"; that is raw negative speculation that carelessly ignores available information to the contrary.  OSH is negotiating with minority interests for their ownerships in the PPLs, not with IOC.  Why would you expect Hession to "farm out IOC's for next to nothing"?  He is "delivering" on a transformational monetization deal for PRL 15 and a hugely expanded exploration program, as promised, contrary to your false statement.

You "question his working in good faith for the corporation"?  You are spouting the same crap here you have elsewhere, such as the Calio (Morgan Stanley) thread, and I am fed up with your sometimes incompetent, contradictory, and/or inappropriately negative comments, and your false abusive statements bordering sometimes on libelous.  If other shareholders here are irrational "pumpers" as you have accused us of being, you are an irrational "basher".