'ArtM72' pid='17147' datel Wrote:
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'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)