O'Neill: NEC Approval/Green Light Project

[Tree]

Happened quickly.  Basically first sentence out of Phil's mouth.

*Final bids now.

*I beleive Phil said Gov't to take 22.5%, not 50%.

[Tree]

Sounds like irrevocable Gulf LNG approval.

*Finalized new Farm-in with PRE T-2

[Tree]

PNG's has a crisis in infrastructure and PNG has asked IOC to kick-off the 3.8 Mtpa as a foundation project and net is IOC will own 74% of 1st phase upfront. 3.8 Mtpa is the sweet spot start-up. PNG is taking their stake 'in-kind' as they will spend their money and efforts now on infrastructure.
IOC is now not financing the State's 22.5% stake in start-up.
PM says 'Hey - get going' and we will negotiate gas agreements later.

On GC:
GLJ is a certified #
GC is a quick review
Both state we have enough gas for 8Mtpa project.

[Tree]

Sal's softball:

Q: Does O'Neill's approval allow final negotiations or we need to wait for permits? Are we in position to sign up bidder?

A: Yes.

Q:Are all bidders still eligible?
A: Yes, all parties are still eligible.
In active engagement with all parties.

All bidders have addressed their financing and funding is not seen as an issue.

Q: Do we assume EWC is back in mix or have they been in mix all along?
A: Everyone has been in the mix all along.
Final scheme is up to high bidder, and we will take whatever.

Aussie costs means lack of supply ahead an is a LNG supply crisis in parts of Asia in 2014-2016.

[Tree]

Pavel:

Q: 3.8 the size?
A: That is a starting point. Some bidders are at 3.8, 4.5 and 4.9 Mtpa start-up.

Q: What is Mitsui role in CSP?
A: Bidders may want to do CSP themselves and Mitsui is involved intheir own consortium.
Mitsui (role) was just to provide a CSP financing option.

Collin:
Stands by his statements that NOCs, Majors and Utilities are in the bid mix. Collin says if someone says contrary and doesn't put name to a quote or statement then those statements are invalid.

[admin]

Thanks Tree, most useful.

[TxPm]

Tree, Phil mentioned several times that there was a group kicking off a meeting in PNG to finalize NEC approval. Did he say how long that meeting would last?

Also I wonder why no one brought up the 50% quote from Liam Fox or the WSJ although it sounded to me like from Phil's comments that the 50% option is not even a consideration

[Hoosier1]

Thanks for the CC detail Tree!!!

Anymore is appreciated...could not participate this time...damn doctor's appt.

h1

[admin]

Tree, Phil mentioned several times that there was a group kicking off a meeting in PNG to finalize NEC approval. Did he say how long that meeting would last? Also I wonder why no one brought up the 50% quote from Liam Fox or the WSJ although it sounded to me like from Phil's comments that the 50% option is not even a consideration

It seems improbable to me. How much gas can PNG need? It's a country with 6M inhabitants, 22.5% of E/A should provide all the gas they can use and then some..

[kkozkkoz]

Collin addressed the 50% quote somewhat by saying if there is no name to the quote then it doesn't mean much.