PNG wants Total to develop "disputed" gas field

[sydbod]

Sorry admin. I guess I am just under a bit of stress at the moment and made the wrong assumption.
Looks like the "ass" happens to be me.

[admin]

Sorry admin. I guess I am just under a bit of stress at the moment and made the wrong assumption. Looks like the "ass" happens to be me.

It happens, Syd, no problem here. Go on that cruise, that seems a good idea

[Relker]

In the 19th century a famous English economist, Ricardo, said: Corn is not high because the rent is paid but an rent is paid because corn is high. In other words Oil companies are calculating the break even price of the future projects.The cheapest projects get priority. Total considers the E/A field as a cheap project and was willing to pay a high license fee to IOC. Ever since the deal was closed, the gasprice went down considerable. It remains to be seen if Oilsearch/XOM are still eager to realize a large expansion.

[sageo]

In the 19th century a famous English economist, Ricardo, said: Corn is not high because the rent is paid but an rent is paid because corn is high. In other words Oil companies are calculating the break even price of the future projects.The cheapest projects get priority. Total considers the E/A field as a cheap project and was willing to pay a high license fee to IOC. Ever since the deal was closed, the gasprice went down considerable. It remains to be seen if Oilsearch/XOM are still eager to realize a large expansion.

Relker- In " the Outlaw Josey Wales" 3 bears says to Clint Eastwood "you speak the truth" before they share their blood as blood-brothers. If (I say if) gas prices keep falling and MH under promises and under-under delivers, will we have to wait even more years. I sure hope by mid-night on 9/30 he "delivers" a batch of good news ! [ trying hard to keep "the faith"} .

[Putncalls]

You guys are talking 110 to 90 some in a few months. There is no glut. The cost of oil and gas farming is up permanently BTW. Deep water drilling and fracking are not cheap.

[admin]

In the 19th century a famous English economist, Ricardo, said: Corn is not high because the rent is paid but an rent is paid because corn is high. In other words Oil companies are calculating the break even price of the future projects.The cheapest projects get priority. Total considers the E/A field as a cheap project and was willing to pay a high license fee to IOC. Ever since the deal was closed, the gasprice went down considerable. It remains to be seen if Oilsearch/XOM are still eager to realize a large expansion.

Yes, you're hitting a few important notes here. However, the declining gas price in Asia is the spot price while these projects are usually underpinned by long-term supply contracts relating to the oil price (which is also off, but not nearly as much as the spot natural gas in Asia).

And funny enough, part of the decline in the spot price in Asia has been caused by the Exxon plant coming online early, so they sold a few tankers on the spot market, as I understand it.

Also keep in mind that extensions of existing facilities are likely to be considerably cheaper than building new plants, depending a bit on circumstances.

[jft310]

Bernstein estimated an expansion of PNGLNG would be $3.5 billion or cheaper than a greenfield build. That build was $16 Billion if I remember right without looking. One question is what's the cost for Total/Interoil to buy into PNGLNG ? What Percentage buyin? Would some owners like the reduction of their debt from the build price with a buy in from Total/ Interoil . Make a quick buck ?? What would the govt say ???Would the govt approve both with an IOC find at WBR??
Lots of possibilities !