Exclusivity over: source

[Petrovale]

Blair Price

Friday, 16 August 2013

EXXONMOBIL’S exclusive period of negotiations for a large stake of InterOil’s Elk-Antelope field in Papua New Guinea is finally over, according to an industry source.

The source told PNGIndustryNews.net that Exxon failed to close a deal and questioned why a press release was not made.

“It's dead,” the source said, before indicating that other pre-selected bidders have the opportunity to approach InterOil.

“They [InterOil] have opened it up again to others this morning.”

ExxonMobil has not commented on the matter.

“It is not our practice to comment on commercial discussions,” a spokesperson said.

Yet an InterOil spokesperson said negotiations between Exxon and InterOil were ongoing, although he needed to make enquiries to see if they were still on an exclusive basis.

The exclusive talks were first announced in late May with PNG Prime Minister Peter O’Neill telling Parliament they would last for up to 60 days.

While PNGIndustryNews.net understands there was a time extension, the source indicated it too had expired.

Exxon was aiming to acquire at least 4.6 trillion cubic feet of gas from the Elk-Antelope field to fuel a third train expansion of the PNG LNG project it operates.

However, Petroleum Minister William Duma along with Gulf Province parliamentarians had since campaigned against piping the Elk-Antelope gas outside of the province, providing an obstacle to Exxon’s plans.

At least two other supermajors previously made bids over the Elk-Antelope asset.

[mlbennetts]

For real? I really hope this is someone trying to flush out information.

[Petrovale]

Only party that knows, should be able to confirm / deny...

[Resourcearb]

Blair Price

Friday, 16 August 2013

EXXONMOBIL’S exclusive period of negotiations for a large stake of InterOil’s Elk-Antelope field in Papua New Guinea is finally over, according to an industry source.

The source told PNGIndustryNews.net that Exxon failed to close a deal and questioned why a press release was not made.

“It's dead,” the source said, before indicating that other pre-selected bidders have the opportunity to approach InterOil.

“They [InterOil] have opened it up again to others this morning.”

ExxonMobil has not commented on the matter.

“It is not our practice to comment on commercial discussions,” a spokesperson said.

Yet an InterOil spokesperson said negotiations between Exxon and InterOil were ongoing, although he needed to make enquiries to see if they were still on an exclusive basis.

The exclusive talks were first announced in late May with PNG Prime Minister Peter O’Neill telling Parliament they would last for up to 60 days.

While PNGIndustryNews.net understands there was a time extension, the source indicated it too had expired.

Exxon was aiming to acquire at least 4.6 trillion cubic feet of gas from the Elk-Antelope field to fuel a third train expansion of the PNG LNG project it operates.

However, Petroleum Minister William Duma along with Gulf Province parliamentarians had since campaigned against piping the Elk-Antelope gas outside of the province, providing an obstacle to Exxon’s plans.

At least two other supermajors previously made bids over the Elk-Antelope asset.

This would be very good for InterOil as it provides addional urgency for Exxon to close. The exclusivity provision granted by InterOil resulted in a lack of competition.  The negotiations are ongoing and in their final stages.  Exxon must now close before Shell overtakes them.

[Resourcearb]

Blair Price

Friday, 16 August 2013

EXXONMOBIL’S exclusive period of negotiations for a large stake of InterOil’s Elk-Antelope field in Papua New Guinea is finally over, according to an industry source.

The source told PNGIndustryNews.net that Exxon failed to close a deal and questioned why a press release was not made.

“It's dead,” the source said, before indicating that other pre-selected bidders have the opportunity to approach InterOil.

“They [InterOil] have opened it up again to others this morning.”

ExxonMobil has not commented on the matter.

“It is not our practice to comment on commercial discussions,” a spokesperson said.

Yet an InterOil spokesperson said negotiations between Exxon and InterOil were ongoing, although he needed to make enquiries to see if they were still on an exclusive basis.

The exclusive talks were first announced in late May with PNG Prime Minister Peter O’Neill telling Parliament they would last for up to 60 days.

While PNGIndustryNews.net understands there was a time extension, the source indicated it too had expired.

Exxon was aiming to acquire at least 4.6 trillion cubic feet of gas from the Elk-Antelope field to fuel a third train expansion of the PNG LNG project it operates.

However, Petroleum Minister William Duma along with Gulf Province parliamentarians had since campaigned against piping the Elk-Antelope gas outside of the province, providing an obstacle to Exxon’s plans.

At least two other supermajors previously made bids over the Elk-Antelope asset.

Just to clarity, "It's dead” refers to the exclusivity period, not to the deal.  Read the article carefully.  Ongoing negotiations with Exxon were confirmed, but it may now be on a nonexclsuive basis, which grants much more leverage to InterOil and could even open the door to a public bidding war. Note that the source said "Exxon failed to close a deal" within the exclusivity period.  InterOil may have held out intententionally knowing that the competitive bids would drive the final deal terms they're seeking.

[Petrovale]

European press is reporting intensified efforts of RDS to acquire O&G assets in Asia. Unconfirmed reports though, quite similar to the PNGIndustryNet article. Yet, where there is smoke, there is fire...

[Resourcearb]

European press is reporting intensified efforts of RDS to acquire O&G assets in Asia. Unconfirmed reports though, quite similar to the PNGIndustryNet article. Yet, where there is smoke, there is fire...

I think that Shell recently submitted an unsolicited bid for the Project.  Think about this... Negotiations are ongoing with Exxon (confirmed by InterOil this morning) and according to Exxon's conference call they're "advancing".  The exclusivity provision is InterOil's to grant and their decision not to do so implies that they have other interest that will only accelerate closure with Exxon (or result in a superior deal with Shell).  There is only one reason InterOil wouldn't have extended exclusivity.  This is a very good sign that InterOil is in a position of strength, as they could have easily continued to extend exclusivity to Exxon.

[Tree]

Sounds like the SPA is complete. Monday announcement??
The original 'exclusivity' was entered into only for the 1st 4.6T sale talks. IOC had 'optionality' beyond that 4.6T. There is another 4.6T to sell/develop in a Gulf project. And then there is the exploration. The original 'exclusivity' did not cover all of IOC's assets and now it's 'optionality' time.

[cybersssss]

This does not sound like an SPA is complete. If it were complete then it would have been and/or needs to be announced immediately, especially to put this article to rest. The article implies that the deal with XOM is not done and that other bidders can now make an offer.

There is a positive and negative take to this. It is confusing. The company must clarify.

[Palm]

"Industry source" on OE day. This will be interesting.