Indonesia, Pertamina

[Spartina]

Yayoo message board - Pickboone. Blair Price.

Pertamina still in the game. Real good news, love the idea of Indonesia joining up with JKM to slug it out with Exxon, Total & RDS for PRL 15.

Should help continue our steady rise

[freddiekingman]

http://www.pngindustrynews.net/storyview.asp?storyid=798529640§ionsource=s0

[freddiekingman]

NDONESIAN LNG powerhouse Pertamina is rumoured to have made a bid for InterOil’s Elk-Antelope discoveries in Papua New Guinea.

Image courtesy of Pertamina.

An industry source said the leading LNG producer and exporter was bidding for a stake of the Elk-Antelope field.

Whether the bid is for an operating or smaller stake is not known. The source said the Indonesian state-owned company needed to import LNG to meet existing export commitments because its production was falling.

There is no other confirmation at this stage and PNGIndustryNews.net’s questions to Pertamina have gone unanswered for a week.

InterOil cannot legally reveal which parties have made bids, but previously signalled they had come from supermajors, and national oil and gas companies.

Pertamina raised $US3.25 billion through an Indonesian record bond issue this week and yesterday announced it signed a production sharing contract for a shale gas block in North Sumatra, with $7.8 billion to be invested over 30 years.

Various reports indicate that at least three supermajors have made bids for an operating stake of the Elk-Antelope field, which underpins InterOil’s Gulf LNG project that targets at least 3.8 million tonnes per annum but has scope for expansion.

[jft310]

pick further says
Pertamina is the world's largest producer and exporter of LNG. The company has $40 billion of assets, $70 billion of annualized sales, and $6 billion of annualized EBITDA. In summary, Pertamina is a tremendous player.

I doubt Pertamina will overtake the supermajors in the competition for PRL 15, but its entry into the bidding war provides healthy competition that will result in a positive pricing outcome

[jft310]

I actually disagree with pick as to who can or will pay the most. Per a 2 hour meeting several months ago with IOC it was explained that a Utility Co would pay the most for a stake,a National OIl Co like Pertamina the next most, and a Super Major the next most because of their name. The goal was to get the Super Major bids up to the National Oil Co's bids. No one knows has that happened and where we are today. We do know we have a bidding war.SWEET!

[cybersssss]

With Arun Gas Field said to be running out of gas in the next year Pertamina makes a lot of sense. From the Platts article it seems that JKM was being outbid by Shell. Just because JKM can bid more per mcf, does not mean they did. Perhaps JKM is cheap but saw that they were losing the bid and Pertamina will help spruce it up.

I really do not care who wins at this point. It needs to get done though, sooner the proverbial soon IMO. At least we have hints that their is a bidding war between the companies that is putting pressure on them to spruce up their bids. This should propel our pps higher and hopefully maintain that level.

[jft310]

The longer we have waited the higher the bids have gone. We have gone from maybe 1 bidder to maybe 6 and the fact the process continues can only mean one thing HIGHER BIDS. This was never positioned as get rich scheme tomorrow but a get rich scheme over time. Not sure ask those who bought below a $1 and are still here 17 years later. We have 8 years in and frankly will vote to get the best deal for my grandkids. My opinion.

[Stavros]

I believe personally that if IOC doesn't make their decision by the end of May there's a strong risk of bidders walking away.

I urge you all to listen again to Dr. Fesharaki's interview whenre he stresses that it MUST be a big boy as operating partner and it MUST be consumated very soon.

Several people have stated in print that Shell has already been pipped as the Operating Partner.

The second tier partner buy-ins are now up for grabs to join IOC and Shell.
Also for sale are offtakes - - - Oil Search/ XOM; JKM; etc

[jft310]

Heres the rational for waiting
IOC's returns if bought at the beginning of the holding period not traded and the measured.
YTD UP 52% before a deal
1 Year UP 65 %
3 Year UP 60%
5 Year UP 200%
10 Year UP 400%
Now if you are a trader and bought the dips well Geez you have done even better.
ALL BEFORE OUR FIRST DEAL!!

[Palm]

Pertamina is converting the Arun facility into a regassification plant to feed the nation's needs. You have to wonder if discussions were held with Oneill when he took his trip to Indon earlier this year to tour the EWC facilities. "As long as I'm here".