Exxon raised $5.5 billion this week

[jft310]

Total is NOT "just kicking back and waiting" (per Mike). It is working with IOC on a modified SPA.

GETIT is 100% correct.

[jdeo1969]

Per IOC mgt they are redoing the numbers . "We are doing everything we promised to do"

JFT, would you care to outline those promises?

[jft310]

How's this
No minority dilution on buy out
Spud the new wells
Got new rigs under lease
Both IOC and Total have publicly stated they want to close the deal. IOC says they are working with Total now on those details.
Govt approval done.
There may be more but this is quite a lot of progress.

[Palm]

Chance of PNG exercising its 50/50 option to protect IOC from a buyout that gives PNG everything it wants? Slim to none and slim just left town. Buyout of IOC is far from a flyer for Exxon here. Its actually more of a no brainer. Another dip in PPS and it's a slam dunk. Exxon and Total are just kicking back and waiting while IOC sweats the CC. IMHO.

Not talking about using 50/50 to "protect".  If you recall it wasn't there by any means to "protect" IOC.  It was to say "We want the option to buy 50% and have our own facility and our own operator should you choose a path we don't like."

[Palm]

Exxon is expected to be going big into Vietnam on a $20 billion project there and this $5.5 billion is more speculated to be headed to that project.

"Exxon Mobil sells $5.5 bln in bonds, plans $20 bln power project in Vietnam

Exxon Mobil Corp. (NYSE:XOM), the world’s largest energy producer by market value, said it sold $5.5 billion in its biggest bond offering on record and was reported to be preparing to invest around $20 billion in Vietnam. Shares advanced in morning trading.

Exxon, which commands top AAA credit ratings from Moody’s Investors Service and Standard & Poor’s, issued fixed- and floating-rate notes in a five-part sale.

The Irving, Texas-based company may use proceeds to finance capital spending, for acquisitions and to refinance commercial paper borrowings, according to a regulatory filing yesterday.

The new securities will add to the company’s $22.7 billion of total debt, which accounted for about 39 percent of its trailing 12-month cash flow at year-end, according to data compiled by Bloomberg. That’s a lower leverage level than the 71-percent ratio at Microsoft Corp. (MSFT), which has similar rankings of Aaa at Moody’s and AAA at S&P.

Exxon sold $1 billion of 10-year, 3.176 percent coupon bonds that yield 48 basis points more than similar-maturity Treasuries, $1.75 billion of five-year debt with a 1.819 percent coupon and a yield spread of 25 basis points and $1.5 billion of three-year, 0.921 percent debt that pays 15 basis points more than benchmarks. A basis point is 0.01 percentage point.

Separately, Exxon Mobil is preparing to invest around $20 billion in a gas-fired power complex with Vietnam's state oil and gas group Petrovietnam, the Thanh Nien (Young People) newspaper reported today, citing the Trade Ministry.

The project envisages construction of two power plants with a combined capacity of 6,000 to 6,500 megawatts, which could make the United States one of the top four foreign investors in Vietnam along with Japan, South Korea and Taiwan, the report said.

Exxon shares gained 0.7 percent to $94.97 at 9:59 a.m. in New York. The stock has rallied 7 percent in the past 12 months but is down 6 percent this year."

[mikesioc]

"Working with" is a relative term. I imagine they were "working with" IOC on a joint PR in December as well. At this point it is to Exxon and Total's advantage to kick back and wait as long as possible to see if IOC gets knocked down again. I remain convinced that Exxon and Total are now on the same page, together with OSH. Remember IOC has no money until someone gives it to them and a lower PPS makes a buyout even cheaper. Drilling results may not even help as what good is the gas without a deal? It may only serve to lower the risk for Exxon and Total while doing nothing for IOC. Today's close is $61.31. Exactly $3 billion and exactly the value of what remains of PRL 15 based on the OSH transaction. No value for any other leases, including Triceratops. Hession wanted to go for two birds in the bush and this is where we are today. Unless he pulls a rabbit the writing is on the wall.

[Getitrt2]

"Working with" is a relative term. I imagine they were "working with" IOC on a joint PR in December as well. At this point it is to Exxon and Total's advantage to kick back and wait as long as possible to see if IOC gets knocked down again. I remain convinced that Exxon and Total are now on the same page, together with OSH. Remember IOC has no money until someone gives it to them and a lower PPS makes a buyout even cheaper. Drilling results may not even help as what good is the gas without a deal? It may only serve to lower the risk for Exxon and Total while doing nothing for IOC. Today's close is $61.31. Exactly $3 billion and exactly the value of what remains of PRL 15 based on the OSH transaction. No value for any other leases, including Triceratops. Hession wanted to go for two birds in the bush and this is where we are today. Unless he pulls a rabbit the writing is on the wall.

I find your conclusions that Exxon, Total, and OSH are conspiring together against IOC, and that Total and IOC have been lying to everyone about what is going on, rather bizarre to put it mildly.  And I thought I was paranoid at times!  Ha!  I guess if Hession is right and things move forward positively and you've misread the "writing", you'll blame it on the rabbit!  Otherwise, I guess I haven't been paranoid enough!

[jdeo1969]

Agreed getitrt. Mikesioc paints a very bleak picture and I too find that to be a very bizarre interpretation.

[Palm]

What parts do you find to be bizarre?

[jdeo1969]

What parts do you find to be bizarre?

Hession wanted to go for two birds in the bush and this is where we are today. Unless he pulls a rabbit the writing is on the wall.

This paints a picture as if IOC and Hession are in need of a small miracle to get something done.  I find that quite interesting and yes, bizarre.  We know there is interest, just look at what OSH did to get involved.  We know Total is interested as they agreed in December to an SPA.  We believe XOM is interested as it makes sense for them to be interested, and they were in exclusive negotiations last year.  Mike'sIOC is saying that Hession is essentially backed into a corner if I am reading his thoughts correctly and I just don;t see that as the case here.  OSH has already paid more than Total agreed to pay, basically upping the value of PRL 15 from when the initial SPA was agreed upon.  Total has stated publicly it is still interested.  Am I missing something?  Because I don;t see that Hession needs to pull a rabbit out of his hat for IOC to succeed here.

Hession wanted to go for two birds in the bush and this is where we are today. Unless he pulls a rabbit the writing is on the wall.