OSH deal with XOM on PNG LNG

[jft310]

The reality is IOC has the NG and will get LNG participation in PNGLNG because they own the NG .Will Oil Search op into a buy into the third train or not?? Since IOC has the NG they will get best guess 20% of the LNG from this third train the other %'s are at the will of Exxon. Hard to know what Oi Search will do or where they can get the money.???

[sydbod]

I agree with most of that, I just don't know about the participation part, because I have not yet seen any (what I call) solid reports confirming this.
Currently my bet would be against it by a small margin, but I am just guessing and there is no reason why I could not be totally wrong on that.

[kommonsents]

Whether or not OSH ends up with any ownership in a third train involving IOC gas or not, the costs of infrastructure will be allocated proportionately. This will lower costs for trains 1 and 2.

So to that extent, all involved with trains 1 and 2 will benefit financially from a 3rd, 4th and any subsequent trains whether or not they have any ownership in those trains.

Everybody wins!

[ArtM72]

I could see where OSH receives consideration from its current investment in PNG LNG in the form of reducing its net capital contribution, with IOC taking over a fraction of OSH's and others' share percentage. In effect OSH's future revenues would remain the same while its up front costs would be reduced, boosting it share price value accordingly. IOC? Well, they might not benefit from the early investment in PNG LNG with this model but get their resource to market much more quickly, itself a significant benefit.

Anybody still think this deal won't happen? (I don't read Yahoo).