PNG Promises to welcome Thai Energy Investment

[ArtM72]

Thanks for your efforts (on this and so many other posts). You are right, a lot of meat here, but damn sinewy. Also, it is an interpretation, not the legislation, so some care must be observed in its authority.

What I will take from this is the interpretation that the word "concession" in this context was a statement by O'Neil et al that the PNG government would provide the necessary "concessions" to Thai investing corporations to secure their rights in PPL and PDL agreements they might enter into. Stated another way, PNG would not stand in the way of the PPL or PDL issuance necessary to secure their commercial rights, including such important matters as recovery of apportioned exploration expenses with respect to tax obligations. This might have as much or more to do with Triceratops than E/A as the PDL for Triceratops, while apparently guaranteed by the Act as it has been determined to be a "discovery", has yet to be issued.

If this interpretation is correct .... if .... then what we saw was an indication that O'Neil may have been assuring Japanese investors the government would fulfill its obligations with respect to PPLs and PDLs, and the loose ends in any gas agreements would be appropriately tied. In this interpretation this was NOT O'Neil giving away anything or engaging in any agreements outside of his authority.

Thanks again. Maybe if Adam reads this thread he'll have a different take ;-)

[CAC]

Thanks for your efforts (on this and so many other posts). You are right, a lot of meat here, but damn sinewy. Also, it is an interpretation, not the legislation, so some care must be observed in its authority. What I will take from this is the interpretation that the word "concession" in this context was a statement by O'Neil et al that the PNG government would provide the necessary "concessions" to Thai investing corporations to secure their rights in PPL and PDL agreements they might enter into. Stated another way, PNG would not stand in the way of the PPL or PDL issuance necessary to secure their commercial rights, including such important matters as recovery of apportioned exploration expenses with respect to tax obligations. This might have as much or more to do with Triceratops than E/A as the PDL for Triceratops, while apparently guaranteed by the Act as it has been determined to be a "discovery", has yet to be issued. If this interpretation is correct .... if .... then what we saw was an indication that O'Neil may have been assuring Japanese investors the government would fulfill its obligations with respect to PPLs and PDLs, and the loose ends in any gas agreements would be appropriately tied. In this interpretation this was NOT O'Neil giving away anything or engaging in any agreements outside of his authority. Thanks again. Maybe if Adam reads this thread he'll have a different take ;-)

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Any thoughts on whether this could be communication to ensure a working relationship is feasible between PTT and PNG...because PTT wants to "step into the shoes" of IOC...like they stepped into the shoes of COVE in Mozambique?

[Palm]

Was thinking the same thing CAC. What if PTT either wants to partner with IOC on this OR is interested in buying them out? Wouldn't they want some assurances that PNG will work with them (especially in a buyout) to preserve the exploration expenses so that IOC's spending becomes PTT's spending and is able to be carried forward and deducted from future revenues from production. Buyouts can be structured many ways but usually there's a decision of buying the assets or the stock. In this case (if they are looking at a buyout) they would be buying the stock and would want assurances that the capitalized expenditures remain with the entity. One does not want to make assumptions in something like this; lots of costs on IOC's books. Could also be considering something like what Shell has with Woodside. They own a chunk of Woodside (not sure people remember that with the recent Woodside talk) and possibly PTT would have to do a partial buyout of IOC to preserve the licenses and costs. Better talk to the PM to get clarification.

[jft310]

PTT can buy 40% of all 3 slices for sale,IOC's slice, the govt slice and Pacific LNG slice . That gives them the led and before assuming the led maybe they wanted to be sure post buy-in thing would remain the same cost wise .Or buy the interest and the costs associated with that interest.

[efi426hemi]

This might have as much or more to do with Triceratops than E/A as the PDL for Triceratops, while apparently guaranteed by the Act as it has been determined to be a "discovery", has yet to be issued.

Very astute point Art. Where there is smoke there is fire and something is up with PTT and Thailand.  Wouldn't it be something, if by this time next year, IOC has 5 nations as their partners, Japan, SK, Australia, PNG and Thailand (oh and don't forget Columbia).   Hmmmm, my brain hamster is starting to turn my hamster wheel.

Keep it on Ice!

Hemi

[jft310]

Japan-Japex,Mitsui
SK-Kogas,Daewoo??
Australia-Woodside
PNG-THE govt
Tailand-PTT.
Columbia-PRE
Interesting line up.

[Palm]

Well PTT is not being shy about their interest in PNG. This is from their website:
"Gas
PTTI is consciously trying to secure energy back to Thailand via investments in LNG and FLNG opportunities in the vicinity of Thailand such as Australia, Timor-Leste, and Papua New Guinea. We also seek to invest where we can utilize our core expertise in gas processing and pipeline, as well as gas-based value chain in other countries such as Middle Eastern countries."

So I think "consciously" means they are considering/thinking about it, doesn't it?

http://www.ptt-international.com/en/our-businesses/

Even talking about FLNG opportunities (I think Phil is addressing a FLNG conference pretty soon isn't he?)
And on the Hoegh site there's an investor presentation from January that shows their FLNG status in PNG as:
"Gulf of Papua
Governmental Approval (NEC) approval received, gas allocation and final approval in process"

Hmmmmm

Also on another slide in the same presentation it says:
Status
•Höegh LNG and partners have Approval in Principle in PNG (National Executive Committee Approval)
•The Project Approval Process in PNG initiated
•Field specific concept study for a jetty moored solution and an offshore solution completed
•Proposal to execute pre-FEED recently issued to a client