The whole enchilada or PRL15

[Relker]

People are puzzling what is meant with non confirming bids. I could imagine that a bidder wants 100% of PRL15 but not the rest of the company. If you look at the costprices you see that the costprice of PRL15 is very low compared to Australian gas. Let us say USD 3.5 / MCF vs 5-8/ MCF. Furthermore, the cost of shale gas in the US are much higher than the present sales price which is not a sustainable situation. So, under the present circumstances it is attractive to buy as much gas as possible. However, if they have to share with IOC, they must form a joint venture. Most managers do not like this, because this is a time consuming affair.

[jft310]

Relker-Oil Search has 4 partners on PNG. All over the world the Super Majors work together on projects to reduce risk and play off each others strengths.
So I conclude that each train of PTL15 will have different partners like Trinidad. They have 7 trains so far and each train has a different ownership percentage.
What eventually will happen?????I imagine JKM would want 100% of PRL 15 but is it for sale at this time??

[Relker]

Yes, but if you have to finance all the trains direct or indirect (PNG and IOC have no money), you might as well want the total field.

[TxPm]

Relker,

This is just my opinion but why would a company pay billions for 100% of PRL 15 when they could just buyout all of IOC for only a slightly higher premium.

[jft310]

Relker-IMHO IOC has zero money issues because of the coming sell down.Most fail to understand when IOC declares FID the assets are booked and IOC can then borrow from any bank in the world if necessary.More important- The Japanese government has voluntered to fully fund the the LNG build out and guarantee it. This is public information first disclosed in 2007. The offer still standing from the Japanese govt was in exchange for offtake from E/A Its expected that IOC will be paid for the assets as they complete certain tasks. Upfront some money, step 2 maybe open the CSP more money, step 3 maybe open the LNG facility etc.(See doublebaggers post on this page)
The exact schedule for payments I don't have nor does doublebagger.
Money has never been the issue.
IOC had to have the assets to get these deals and A-3 finally put them over the top.