Interesting Post Courier article; IOC close to deal, Shell interested in chunk

[Petrovale]

Tree-man, please, could you re-phrase IOC's business proposition as clearly as possible in 4/5 sentences?

[Tree]

Shell buys 100% E/A, decent $/M, not as high as PRE deal in T-2, big wad of cash for IOC, more as E/A reserves proved and booked.
In exchange, IOC Gulf LNG as proposed is approved, fed by T-2. JKM with hired Operator partners in Gulf LNG.
XOM has deal for dry gas to feed expansion.
More JV's in T-2 a coming.

This ensures IOC is not screwed and IOC will remain as a cash-cow entity with explorationalooza and a big-ass LNG plant of their own. PNG remains attractive to foreign investment, has 2 SM's, and JKM is so hoppy, so velly hoppy.

[Petrovale]

Thank you, I completely agree with you, and - most likely - 90% of the rest of humanity as well.

[Tree]

Huh, maybe Shell is not annointed?? Gee, would CHEVRON be deemed a suitable operator?? With recent Aussie cost blowouts jammed up their balance sheet, CVX just may be open to participating in an innovative and low cost modular scheme in The Gulf as Operator. Usually more profit is gooder in business.

[Palm]

Chevron-JPX for Triceratops and Gulf LNG with EWC/Flex/Daewoo, then EA goes to highest bidder (maybe outside chance that IOC retains a small %). EA cash funds needs, IOC can then develop Tri and take rig to 236 ASAP since drilling requirements can be taken care of by EA buyer. Nice package for sholders

[ArtM72]

Palm -

I like the approach. Amazing how many scenarios exist that end with the sentence "Nice package for s'holders."

[bertl05]

Sounds nice Palm but i have a hard time believing that JKM would welcome EWC/Flex as their partner on the project. If the rumor about them not being keen on using ewc/flex at E/A was true , why would they agree to it on a less proven field? Granted its all smoke and mirrors and its very hard to get a feel for whats going on.

[Palm]

Bertl, I don't. I know you are staunch no EWC or Flex, but I am not. Reliable sources support that theory, so I'll go with it for now.

[Tree]

Harder to believe JKM wouldn't want EWC/Flex. Japan vetted/endorsed EWC's modular LNG concept for JP co's to partner with and sign off-takes. SHI is about the biggest thing going in SK and I'd imagine KOGAS would trust their ability to provide a functioning FLNG. These nations are viewing LNG liquefaction options for the coming decades. Cheaper, durability and the ability to unlock smaller gas fields will keep LNG supplies plentiful and Mcf costs down.