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Interesting SM Bidders Mentioned
#1


A conspicuous neighbor is unnamed.


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InterOil sets deadline for final PNG bids


The InterOil-led Gulf liquefied natural gas project in Papua New Guinea has set a deadline for final binding bids to be submitted by companies keen to join.

The project must introduce a recognised international operator in order to receive the PNG government’s approval to proceed.

Final bids are due on 28 February. InterOil chief executive Phil Mulacek said: “We are pleased to have the continued support of the PNG government.

“The interest demonstrated by major oil, national oil and global utility companies remains strong, and bodes well for the conclusion of our sell down of interest in the Elk and Antelope fields and partnering in the Gulf LNG project.”

It is understood Shell, Chevron, Eni and possibly Total, as well as some national players have expressed an interest. The project involves a single onshore LNG train of 3.8 million tonnes per annum coming on stream in 2016, followed by a second train.

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#2

eni?  That is interesting. I have not heard that they are interested before.

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#3
ENI has been interested in an ennerOle LNG stake since July 2009. They submitted an indicative bid with 6-7 others on a 20%-30% stake of the LNG project. Bids were in the $500 mill range then.
From memory, Osaka Gas, PTT, CNOOC, MRO, ENI and a couple others. ENI has been mention as bidder since 2009 and often on SHU. They could be a dark horse in this sale.
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#4

"A dark horse which had never been thought of, and which the careless St. James had never even observed in the list, rushed past the grandstand in sweeping triumph."

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#5
Eni interest in PNG predates 2009. In 2008 they signed an agreement with PNG and then PM Somare. So many signed agreements with PNG.

"08
OCT08
CET 10:30
Eni and Papua New Guinea sign long term partnership agreement

Under the agreement, Eni will perform a detailed exploration study and outline a data acquisition program for the unlicensed or unexplored areas within the country, in order to better determine the remaining hydrocarbon potential of Papua New Guinea.
Eni is also interested to jointly explore opportunities for developing oil and gas projects

Rome , 8 October 2008 – Today, Eni and the Independent State of Papua New Guinea signed a long term partnership agreement to pursue a shared vision for sustainable development of Papua New Guinea's hydrocarbon resources.

Under the agreement, Eni will open a local office in the country to perform a detailed exploration study and outline a data acquisition program for the unlicensed or unexplored areas within the country, in order to better determine the remaining hydrocarbon potential of Papua New Guinea. The data and the outcome will be the property of Papua New Guinea and Eni will have the first option to identify areas of interest.

Eni is also interested in engaging with local communities in Papua New Guinea to jointly explore opportunities for developing oil and gas projects that can be expeditiously brought on stream. The agreement also covers the promotion of social projects related to new infrastructure, power generation and technical support for the development and use of alternative and existing renewable forms of energy such as geothermic, hydro and solar power.

In addition to the above, Eni is committed to promoting the sustainable development of the Independent State of Papua New Guinea, supporting the creation of a Trust Fund for Future Generations and ensuring training initiatives to enhance local technical and managerial competencies on oil and gas.

The Prime Minister Sir Michael Somare, who met with Eni CEO Paolo Scaroni, was happy with the discussions and welcomed Eni as a long term partner in the sustainable development of the natural resources of Papua New Guinea."
http://www.eni.com/en_IT/media/press-rel...ment.shtml

There have been other activities since. So are they a player? Time will tell
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#6
  1. 'Tree' pid='17144' datel Wrote:ENI has been interested in an ennerOle LNG stake since July 2009. They submitted an indicative bid with 6-7 others on a 20%-30% stake of the LNG project. Bids were in the $500 mill range then. From memory, Osaka Gas, PTT, CNOOC, MRO, ENI and a couple others. ENI has been mention as bidder since 2009 and often on SHU. They could be a dark horse in this sale.

Let's see.   $500 million for 20% of IOC's share in E;A,  Say IOC's share  at the end of the day is 5TCF.  If it's not too late for some quick mental math, that amounts to about $0.50/mcf.

Just how can anyone around here criticize Mulacek for not making a decision on the selldown with that kind of bid?  I for one would be surprised and sorely disappointed if the Board settled for twice that amount.  Frankly, I'm expecting a number in the $2 to $2.50 range for IOC's E/A interest.  We'll see soon enought I suspect.

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#7

'ArtM72' pid='17147' datel Wrote:

  1. 'Tree' pid='17144' datel Wrote:ENI has been interested in an ennerOle LNG stake since July 2009. They submitted an indicative bid with 6-7 others on a 20%-30% stake of the LNG project. Bids were in the $500 mill range then. From memory, Osaka Gas, PTT, CNOOC, MRO, ENI and a couple others. ENI has been mention as bidder since 2009 and often on SHU. They could be a dark horse in this sale.

Let's see.   $500 million for 20% of IOC's share in E;A,  Say IOC's share  at the end of the day is 5TCF.  If it's not too late for some quick mental math, that amounts to about $0.50/mcf.

Just how can anyone around here criticize Mulacek for not making a decision on the selldown with that kind of bid?  I for one would be surprised and sorely disappointed if the Board settled for twice that amount.  Frankly, I'm expecting a number in the $2 to $2.50 range for IOC's E/A interest.  We'll see soon enought I suspect.

These bids were admidst Ant-1 completion.  With the Elks it looked like IOC now had enough gas for a single train plant.  With coming exploration that $500 million bid was just price of admission and could turn into a $2 bn obligation.  That would be $2/M.  There was big interest back then.  North of $2/M seems logical.

..."The indicative bids account for an 'upfront payment', and do not represent the full value of the asset over time, which could surpass $2 billion, one of the sources added."...


UPDATE 1-Asia, Europe giants bid for InterOil LNG stake


Wed Jul 15, 2009 4:36am EDT

* Indicative bids in $500 mln range submitted this month

* Auction draws bids from Asian and European giants (Adds details, background, quotes)

By Joseph Chaney

HONG KONG, July 15 (Reuters) - CNOOC (0883.HK), PTT PCL PTT.BK, ENI (ENI.MI), and Osaka Gas (9532.T) are among companies that submitted indicative bids for a 20 to 35 percent stake in InterOil's (IOC.N) liquefied natural gas project in Papua New Guinea, sources said.

Bids of about $500 million were submitted earlier this month, one of the sources with knowledge of the situation said.

Canada's InterOil, and its project partner, Pacific LNG Operations Ltd, hope to sell a stake of between 20 and 35 percent in the project, as well as stakes in upstream gas assets, InterOil chief executive Phil Mulacek told Reuters in May.

"There will be a deal done -- on the buy side there's plenty of interest that's genuine and ready to do a deal, and on the sell side you've got a ready vendor," one of the sources with knowledge of the auction told Reuters.

France's Total (TOTF.PA), Japan's Mitsui & Co (8031.T) and Mitsubishi Corporation (8058.T), as well as a major U.S. energy company have also placed indicative bids, one of the sources said.

China's PetroChina (0857.HK) (601857.SS) (PTR.N) was also rumoured to be planning a bid for the stake, according to media reports late last month.

The indicative bids account for an 'upfront payment', and do not represent the full value of the asset over time, which could surpass $2 billion, one of the sources added.

In March, InterOil said the project would cost about $4.5 billion with targeted production of about 3.5 million tonnes per year, with shipments due to start in 2014.

The deal is expected to close before the end of the year, the sources said. The sources declined to be identified as they were not authorised to speak publicly about the matter.

InterOil currently holds an 87 percent stake in the project, while privately-owned Pacific LNG Operations has 13 percent.

"People who want to have a strategic interest in Asia and who want to be LNG operators have been knocking on our door," Mulacek told Reuters in a telephone interview from the PNG capital Port Moresby in May.

"We've got a premium quality onshore asset, so a lot of the conventional LNG players and offtakers are interested in investing in this project." (Reporting by Joseph Chaney; Editing by Chris Lewis)

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#8
Very interesting post. Thanks. I don't recall ever seeing that or reading about "indicative bids" before. I first bought in September 09, getting the nice rise only to buy again in December 09 at $62.50. (Hmmm. Wonder how much I've made so far on that transaction. LOL.)

I suppose my point here is that with this article I have a better understanding why there is such a strong case for some to believe Phil has simply been holding out and unwilling to negotiate a deal. I just hope that someday someone writes a book on this company. Maybe Whitney Tilson could write some cover notes and Ari Levy could do a followup for kids with lots of pictures.
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