According to this article published in the Courier the negotiations for the additional 27.5% are expected to be concluded by November 30th. This would suggest a fairly high possibility for selldown terms (thereby establishing value of the gas) to be determined prior to the 30th.
All I can say is when Morgan Stanley made the point the complexity of the IOC dea with the NEC is the reason for its delay I want to go back to the history books looking for equivalent understatements. Maybe the Titanic's first mate saying to the captain, 'I think there might be a little ice up ahead'.
"Cabinet approves Gulf LNG Project
"PRIME Minister Peter O’Neill has announced the NEC approval of the 50-50 Gulf LNG project with the State acquiring an additional equity interest in the Elk-Antelope gas fields on terms to be negotiated with InterOil Corporation over and above its 22.5 percent entitlement.
"Mr O’Neill said in doing so, Cabinet had also approved the conditional withdrawal of the Notice of Intent to Terminate the Project Agreement issued to InterOil by the State subject to the parties agreeing to certain conditions, including developing saleable gas on 50-50 basis. He said other terms that needed to be discussed and agreed with InterOil Corporation (IOC) were that; an internationally recognised and experienced operator shall operate the upstream facilities, the fiscal incentives in the current Project Agreement amended accordingly, and the terms in which the State would acquire the additional 27.5 per cent equity in the gas fields would have to be mutually agreed.
Mr O’Neill said Cabinet had approved the establishment of the bureaucratic negotiation team to be headed by the Secretary for Petroleum and Energy and comprising departments of Treasury, Justice and State nominee Petromin, to negotiate the terms of the 50-50 proposal and report to Cabinet, through the Ministerial Gas Committee by November 30, 2012.He said given the importance of the project, Cabinet approved the establishment of the Ministerial Gas Committee headed by Minister for Petroleum and Energy and comprising key economic Ministers, including Minister for Treasury, Minister for Trade and Industry, Minister for Planning, Minister for labour and Employment and Minister for Environment and Conservation to fast-track the commercialisation of the country’s second LNG.
"The Prime Minister said Cabinet also approved that the project may be commercialised equally and simultaneously on a 50-50 basis between the State and InterOil based on the available saleable gas, using two separate processing facilities.
"Cabinet formally endorsed that InterOil may locate its processing facility in the Gulf Province."
