NO Counter Bid from Total

[ioc.aussie]

French oil major Total SA has ruled out a counter-bid for Papua New Guinea gas explorer InterOil, and will instead work with ExxonMobil on savings from combining their LNG projects, in a move that would benefit ASX-listed Oil Search. Total chief financial officer Patrick de La Chevardiere told investors that while the French energy giant had supported Oil Search's earlier $US2.2 billion ($2.9 billion) takeover bid for InterOil, it wasn't interested in ramping up a bidding war now that Exxon lodged a higher, circa $US2.5 billion bid. "ExxonMobil made a higher offer and we choose not to counter-bid," Mr de La Chevardiere said on the second-quarter investor teleconference, overnight Australian time, clarifying Total's previous statement that it was "analysing" the US major's offer. "Our main objective was to unblock the project by removing InterOil and now we have Exxon as a partner with the financing power and understanding of LNG." Exxon's takeover of InterOil, which has yet to be approved by shareholders in the US-listed target, will mean that the PRL15 permit holding InterOil's Elk-Antelope field will be split between Exxon, Total and Oil Search, with Total the venture operator. Related Quotes OSH OIL SEARCH FPO 10T (OSH) $7.150.050.70% volume 3640762value 25888369.0 5 years 1 Day May14GMT+1000 (AUS Eastern Standard Time)Jul11Jul1667895.8869.689 Last updated: Fri Jul 29 2016 - ‎2‎:‎26‎:‎11‎ ‎PM View full quote Company Profile Exploration for oil and gas deposits in Papua New Guinea and the development and production of such deposits. http://www.oilsearch.com Oil, Gas & Consumable Fuels (101020) ASIC 055079868 ASX Announcements 21/7/16 Quarterly report to 30 June 2016 21/7/16 Oil Search not to submit revised offer for InterOil 18/7/16 IOC notification of Superior Proposal 15/7/16 PAC sellers' certification completed 7/7/16 Drilling Report for June 2016 View all announcements Push to get higher offer The Elk-Antelope gas field is intended to supply a new project, named Papua LNG, but it would be sited at the same location as the producing PNG LNG venture, managed by Exxon and which also includes Oil Search. Mr de La Chevardiere said Total "is and will remain the operator and the largest shareholder of the Elk-Antelope field", showing no signs of backing away from investing in PNG, despite losing out on InterOil. He said the focus was now on completing the exploration phase at Elk-Antelope to determine the size of the resource and have it certified, before moving on to consider development options. "Of course we shall be discussing the potential synergies between the two LNG projects and having Exxon as a partner is very important in that respect," Mr de La Chevardiere said. "It will be a long process but we feel good about the project." Meanwhile, InterOil's founder and former chief executive, Phil Mulacek, has made it clear he will be angling to get Exxon to increase its offer for the company, in which he still has a stake of about 5 per cent. Exxon's takeover offer needs to be approved by at least two thirds of InterOil shareholders to go ahead. Shareholders will vote on the deal at a meeting on September 21, InterOil said on Friday. Share via Email Share on Google Plus Post on facebook wall Share on twitter Post to Linkedin Share on Reddit Read more: http://www.afr.com/business/energy/gas/t...z4FlieEyrQ Follow us: @FinancialReview on Twitter | financialreview on Facebook

[Stavros]

This is more evidence that TOTAL is in financial trouble and cannot afford to bid.

They would rather pay more CA$H to XOM in 7 years than borrow more money or further dilute their shares today.

[ioc.aussie]

This is more evidence that TOTAL is in financial trouble and cannot afford to bid. They would rather pay more CA$H to XOM in 7 years than borrow more money or further dilute their shares today.

Time to buy Oil search

[Palm]

They chose to "unblock the project by removing Interoil" and now they have a financial powerhouse in XOM.

Whether under Phil or under Hession IOC has always been seen as a "block" who was very fortunate to discover (thanks to Phil) a huge resource. As a financial person this was clear long ago unfortunately. OSH is seen as more necessary with it's strong PNG ties and positive cash flows from O&G operating assets. They will survive most likely IMO.

[AU74]

"Total" lack of respect. Voting No with dissent rights preserved is the appropriate response to all backstabbing "partners", past, present, and future who intend to rob us blind.

[Tree]

No $4-$5 Mcf sell downs.
No revolutionizing the LNG industry
No Short squeeze.
No certified 12-15Ts.
No Bidding war.
We are left with lawsuits and intimidating XOM into 'fair treatment of IOC shareholders'.
No way.

[oliver.gump]

No $4-$5 Mcf sell downs. No revolutionizing the LNG industry No Short squeeze. No certified 12-15Ts. No Bidding war. We are left with lawsuits and intimidating XOM into 'fair treatment of IOC shareholders'. No way.

Tree, setting aside the hyperbole, and the invective (from both sides) for a moment, what are your thoughts on a way forward for IOC shareholders?

[Libtardius Maximus]

It's right there in black and white, Total never intended IOC to be a partner, the goal from both tot and osh perspective was to remove ioc with low bidding and low certification numbers. First osh bid low, the xom wins be a hair.

[Tree]

No $4-$5 Mcf sell downs. No revolutionizing the LNG industry No Short squeeze. No certified 12-15Ts. No Bidding war. We are left with lawsuits and intimidating XOM into 'fair treatment of IOC shareholders'. No way.

Tree, setting aside the hyperbole, and the invective (from both sides) for a moment, what are your thoughts on a way forward for IOC shareholders?

Vote yes with the majority.

We got bruised up here but facts are friendly.

This appears to be over.

[Palm]

Have been saying this for long time. IOC not seen as necessary and as a very weak contributor. With financing we have been seen as a hindrance. Just a hard to swallow fact.