IOC's Lynn on Total Schedule

[Getitrt2]

Exactly Wapi. People want to say "never forget" but that first communication from Total was 5.1 Ts or whatever. They have their shareholders to satisfy, not IOC's and we'll see what our mgmt and BOD are made of should an offer come from Total or another.

Basically agree with above, but IOC is not direct competition to Total at this point, but JV partners with a great deal of common interests.

[Getitrt2]

Total announced the P-1 number 5.3 T's I think but signed a contract to pay on P-2 numbers . We should have had a joint press conference which was planned but everyone jumped the gun.Oil Search first to nail us . Total totally ignored GLJ . Total created part of this uncertainty with their announcements . I doubt if we do our own plant . Bet we build a plant with Total .Total is dragging now time wise part has to be the current price of oil . We are the minority partner . Several of the new board members have an expertise in M &A . A defensive deal for Oil Search would be to merge with Interoil . That's possible . The government would like that I think. Twill be interesting .

How exactly is Total "dragging now time wise", or where are you getting that?

[jft310]

Getit to me it's simple - Rig 116 has been moth balled till 2016 , it arrived as promised in Aug. It could have started drilling Ant 6 but it's not being used, its on standby. That's spreading out the costs not in a hurry to spend money . Rig 103 is currently drilling Ant 4 sidetract and then Ant 6 . That's not the quickest way to get to certification . The quickest way is drill them both at the same time . Sorry to say .

[Putncalls]

At $50 oil, LNG economics worldwide would be subpar, and IOC’s LNG project is no exception. That’s one reason why we certainly don’t look at $50 oil as something that will continue forever. But, in any case, let’s underscore that IOC’s resource selldown to Total – which will hopefully result in a $1 to $2 billion cash payment by mid-2016 – is an entirely separate matter. Total is contractually obligated to buy this gas resource, no matter what. The decision on whether to proceed with the actual project construction will probably not be made until 2017, after the resource selldown is completed.

This is what RJ said about low oil prices and certification.

[Getitrt2]

Getit to me it's simple - Rig 116 has been moth balled till 2016 , it arrived as promised in Aug. It could have started drilling Ant 6 but it's not being used, its on standby. That's spreading out the costs not in a hurry to spend money . Rig 103 is currently drilling Ant 4 sidetract and then Ant 6 . That's not the quickest way to get to certification . The quickest way is drill them both at the same time . Sorry to say .

I seriously doubt Lynn would agree with that interpretation.  For example, Rig 116 may be on standby pending the Ant 7 decision, or some other decision, or completion of some action, not "moth balled".

[jft310]

Best you read the High Artic Press Release on rig 116 . It says rig on standby lower rate of pay to them not expected to be used until 2016 higher rate of pay . Per them who obviously talks to Interoil . That's moth balled . Just the facts please

[Getitrt2]

I do not consider "on standby" the same as "moth balled", but you are welcome to your preferred terminology. The main point is that a decision is expected soon on Ant 7, which will almost certainly affect the plans for Rig 116 in some manner, although it could still be early 2016 for drilling in any case.