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This replaces the 2009 LNG Agreement . IOC has secured a written legally binding agreement to keep moving forward. Any other discussions are noise and this document should remove any June expiration discussions. See Pet Engineers comments
Regarding PRL 15, the first five year term of our license does not expire until November 29, 2015 and we can have two five year extensions.
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April 15, 2013
Port Moresby and Houston, TX — InterOil Corporation (NYSE: IOC) (POMSoX: IOC) (“InterOil” or the “Company&rdquo today announced that the Joint Venture Operating Agreements (JVOA) relating to operations within Petroleum Retention License 15 and Petroleum Prospecting License 237 have been approved by the Minister for Petroleum and Energy and registered under the Oil and Gas Act.
As previously disclosed, InterOil has received bids from potential partners in connection with the development of the Gulf LNG project and an interest in the Elk and Antelope fields in Papua New Guinea. Confidential negotiations with more than one bidder are ongoing, and the process is moving forward as planned. InterOil will provide further comment once these discussions have closed and an agreement has been reached.
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05-12-2013, 11:42 PM
(This post was last modified: 05-12-2013, 11:48 PM by Tree.)
'jft310' pid='22238' datel Wrote:
This replaces the 2009 LNG Agreement . IOC has secured a written legally binding agreement to keep moving forward. Any other discussions are noise and this document should remove any June expiration discussions. See Pet Engineers comments
Regarding PRL 15, the first five year term of our license does not expire until November 29, 2015 and we can have two five year extensions.
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April 15, 2013
Port Moresby and Houston, TX — InterOil Corporation (NYSE: IOC) (POMSoX: IOC) (“InterOil” or the “Company&rdquo today announced that the Joint Venture Operating Agreements (JVOA) relating to operations within Petroleum Retention License 15 and Petroleum Prospecting License 237 have been approved by the Minister for Petroleum and Energy and registered under the Oil and Gas Act.
As previously disclosed, InterOil has received bids from potential partners in connection with the development of the Gulf LNG project and an interest in the Elk and Antelope fields in Papua New Guinea. Confidential negotiations with more than one bidder are ongoing, and the process is moving forward as planned. InterOil will provide further comment once these discussions have closed and an agreement has been reached.
PRL 15 JVOA lists partners. Only unknown partner is the SD partners. State cannot be a partner in JVOA without a Gas Agreement. Likely The State/IOC have completed Gas Agreement and those terms are laid out in the PRL15 JVOA. Clarity for bidders. Why else register a JVOA?
JVOA partners are owners of PRL15. JVOA is necessary item to earning a PDL. PDL is guaranteed as long as JVOA partners meet requirements within O&G ct and other agreements.
If significant petroleum discovery is made that can sustain commercial production, which is the production licence, will be issued to the holder of the PPL. The basic requirement of a PDL is fixed by legislation. A PDL is issued to the holder of an exploration or retention licence for a period not exceeding 25 years, renewable a term not exceeding 20 years.
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The JVOA does not normally (actually I have never seen it) address contract issues between the partnership and the host government. The JVOA governs how partners (the "joint venture") manage decisions and associated budgets in regards to development of fields..which of course does include the state oil/gas company as a "partner". I would say this has nothing to do with the PA and is not a "gas agreement". Of course a JVOA is useless if PA expires.
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Petro- I have asked IOC Mgt to directly address this ? on the CC.I have my opinion and your yours let's eliminate any quesswork with statements on the call. WA was quite excited when this came out. The PNG govt wouldn't have entered into this agreement without further intent.
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'Petro2458' pid='22249' datel Wrote:The JVOA does not normally (actually I have never seen it) address contract issues between the partnership and the host government. The JVOA governs how partners (the "joint venture" manage decisions and associated budgets in regards to development of fields..which of course does include the state oil/gas company as a "partner". I would say this has nothing to do with the PA and is not a "gas agreement". Of course a JVOA is useless if PA expires.
Petro, thanks for sharing your opinion based upon your experience regarding JVOA's in PNG. Your conclusion is at odds with PNG Law however.
I guess it's possible that the April statutory approvals of the PRL15 JVOA only restate the obvious that IOC/PacLNG/IPI partners have a JVOA awaiting the Gov't and SD partners decision to add to the JVOA but IMO it is more likely in context of SD that the Gov't has concluded their Gas Agreement and selected their level of equity participation in PRL15.
"Thirdly, oil companies are granted exploration title, exclusively of the State, with the State retaining the right to participate in petroleum production. Upon successful petroleum exploration and discovery, the State may elect to take up an equity position in the ensuing petroleum project. In such case, the State, through its Nominee, is assigned a portion of the petroleum production licence and other titles, leases, licences, permits and authorisations proportionate to its participating interest. It also enters into a joint operating agreement with the oil companies, and hold the petroleum title and the project assets and liabilities, jointly and severally with the oil companies as a tenant in common. These are features of joint venture contractual arrangements."
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This is something for all to think about . The IOC story is complex and changes , I talk to some one associated with IOC in some way everyday and I still mess things up . Part of that is me and part is the complexity of the story. This is a perfect example of the confusion
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No question I was very pleased to see the finalized JVOA...definitely goes a long ways toward FID. As I was concerned that after the deal that we'd be 6 more months working this...so 1 less issue to deal with.
Great week last week...good technical action on low volume. Should set us up for a good week...would be nice to hear a bit more detail in the call.
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05-13-2013, 09:30 PM
(This post was last modified: 05-13-2013, 09:32 PM by Petro2458.)
Would add that the the JVOA between PRE and IOC took quite a while to get in place...so I was quite relieved when this was done and it will help govern the way IOC and SD partner work together post deal. I have wondered for some time if a detailed field development plan is required by the govt to compete this transaction. If so, this means FID would be imminently on the heels of the deal. It also would take more time: have seen this take 6+ months to just agree/negotiate with govt...and this is in situations where the partners are already in place. The JVOA would be the governing rules for the new partnership to manage and agree on the details of the development plan proposal. Can the operator drag partners along or can the partners enforce their views because the JVOA is partner "friendly".
The key issues in the document usually revolve around voting rights on key decisions (I.e. how many wells to drill, where to place them, major facility decisions, etc...the JVOA is used to manage all things submitted from partners).
Examples of things that it would govern are:
- submitting detailed development plans (can operator submit its own plan or do voting rights make it such that the 1 of the partners has a veto vote so the operator must play nice)
- agreeing on annual work program and budgets
- individual well proposals
- the committee structure. Finance, accounting, technical, and management committee's.
- usually covers the joint venture from an effective date and includes Pre development and development activities
The JVOA, organizationally, would report up to the PA and any amendments.
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Well IOC has those JVOA agreements for E/A now per the Press Release and yes that means FID will closely follow the deal announcement per IOC.
There will be no new PA but a Gas Agreement the Press reports.
Apparently they do things differently on PNG.!!
This has been requested to be a talking point tomorrow so speculation is a spin in the mud.
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What if some names were being taken off the JVOA for PRL 15 and some added to PRL 237 JVOA?
HoHoHo
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