Go Ahead = Partnering

[Tree]

InterOil seeks Gulf LNG partners

InterOil

Canada’s InterOil Corp could tie up a partner or partners for its Gulf LNG project in Papua New Guinea in a matter of weeks after receiving a go-ahead from the government.

Eoin O'Cinneide 

 16 November 2012 12:29 GMT

“Major oil companies, national oil companies and Asian utilities” are all allegedly interested in taking a stake in the first 3.8 million-tonnes-per-annum LNG train.

PNG’s National Executive Council has approved the LNG development in Gulf province which also means the government has the option to acquire a further 27.5% stake in the Elk and Antelope gas fields to add to the 22.5% share it currently holds.

Getting clearance from the government now also means InterOil is free to seek a partner or partners to farm into the fields, something the NYSE-listed company said would happen “in the coming weeks”.

“Major oil companies, national oil companies, and Asian utilities have been actively engaged in the process,” a statement from InterOil read on Friday.

In late August the PNG government suspended its threat to cancel the project agreement it made in 2009 with Liquid Niugini Gas, InterOil’s joint venture in the country with Pacific LNG, because it was unhappy with the plans.

It issued a suspension notice which triggered a six-month consultation period during which the parties were to explore steps to deal with or remedy the state’s concerns before the agreement would be cancelled outright.

In September last year the company traded insults with Papua New Guinea's oil minister over the merits of the Canadian player’s redrafted plans, prompting the company's shares to take a market dive.

The final investment decision on the $6 billion project has been delayed a number of times.

[TxPm]

Anybody want to place bets how quickly we hit triple digits? I think we see the real price movement after the Nov 30th announcement & then further movement once the SD is completed

[TxPm]

O'Neil wants a decision by Nov 30th which is in 10 trading days...either we are going to see a lot of short covering over the next 10 days or a lot of margin calls come the first week of Dec

[Tree]

Anybody want to place bets how quickly we hit triple digits? I think we see the real price movement after the Nov 30th announcement & then further movement once the SD is completed

Don't know how quickly we get there.  I couldn't resit myself yesterday and nabbed more shares for my already overloaded boat.  It is starting to look like an Indo Ferry.

[Spartina]

I think you gents are on to something - premarket up $3.25.

[Palm]

By Nov 30 is the key. They could quickly hammer this out since they have already been talking A LOT and we could get announcement sooner. Wouldn't want to be short here.

[TxPm]

I can't blame you I did to. I didn't think we would ever see the pps get that low again. One thing I was thinking about last night in reference to the 50/50 is that O'Neil had talked about using the two two gulf projects to drive PNG over the next 40yrs even if they don't have the need for the extra 27.5% today if O'Neil truly is thinking long long term then what better way to secure the future power supply of your country then to have the option to buy 27.5% or just outright commit to the other 27.5% and lock in cheap prices.

I personally haven't yet had the opportunity to go to PNG but I have visited other Asian countries such as Thailand, Indon, & Vietnam and I can say first hand that IF these countries could adequately power their entire country the impact would unbelievable

[Palm]

Exactly Tx. What we are seeing here is the breaking of the mold for a 3rd world country. O'Neill has seen enough of the old ways; all they did was hurt PNG with all of the waste and corruption. The country has been dealing the old way forever under Somare and he is doing his best to put a stop to it. They will do what it takes to work with IOC fairly and IOC will be able to continue developing its license areas. Big test here of how things should work.