Total to push Gulf gas projects

[cybersssss]

Is the JVOA coming?

Source:

The National, Thursday January 30th, 2014

 FRANCE gas and oil company Total SA is committed to developing the Elk and Antelope gas fields in Gulf after several meetings with InterOil, Australia and Papua New Guinea vice-president and country adviser Marc Geniteau said.

He said this on Tuesday when the company’s technical team arrived in the country for a two- day visit to the gas fields.

Total signed rights with InterOil in December last year to own a 61.3% stake in petroleum exploration licence 15, which contains the Elk-Antelope gas fields.

InterOil’s drilling project manager Tim Green said the trip is to ensure both companies understood various aspects of their joint venture in the development of gas resources.

He said the visit aimed to open up cooperation between Total and InterOil.

“Whilst InterOil has lots in country experience in exploration, drilling, seismic and logistics, Total will bring to the table broad range of skills to help both teams.” Green said

“End result is a top class team, well-positioned to appraise and develop the Elk/ Antelope wealth.”

[Palm]

Good find Cyber. Interesting we have heard little/nothing about the Development Forum from Jan 20 that Duma mentioned.

[Relker]

The development forum is extremely important. Not everybody understood why Total wants to take the final decision to proceed in 2015/2016. Also it is not clear which role the PNG government will play in the project. According to the Project Agreement they can acquire upto 50% of the ownership in the JVOA partly against commercial terms.

May be IOC would prefer that PNG becomes a 20% shareholder of IOC instead of above ownership in the JVOA. This would give more stability to the shareprice and would give more assurance to the other shareholders who opt for the long run. Statoil in Norway is a good example. A good move has been the office removal to PM. This can be seen as a token to the PNG government that IOC is strongly linked to PNG.

[jft310]

Per the article planning means JVOA is at least under discussion.
"understood various aspects of their joint venture in the development of gas resources"

[Tree]

Now, why would Australia be involved in on Island meetings on E/A wealth development?
Sounds kinda committish.

[Thylacine-2]

The article doesn't say Australia is involved, as I read it. It says that Marc Getineau is the Total vice president for Australia and PNG.

[jft310]

Well Total has a relationship in Australia with Oil Search

[Palm]

Regarding the Development Forum. It appears that it did happen based on a comment in the PR from yesterday. Under the Antelope 4 drilling plans in the schedule it states that the final drilling site location is under review, etc, then the last line states, "Landowner agreement in place and signed". That would be for PRL 15, not just the Ant 4 drilling site as landowner agreements are for license issues, not specific drilling site issues.

So it appears this Forum has taken place and the Gulf Provincial, Gulf LLG and proper landowners have given their blessing to the project. I would guess we hear more about this in the coming weeks.

[Getitrt2]

The development forum is extremely important. Not everybody understood why Total wants to take the final decision to proceed in 2015/2016. Also it is not clear which role the PNG government will play in the project. According to the Project Agreement they can acquire upto 50% of the ownership in the JVOA partly against commercial terms. May be IOC would prefer that PNG becomes a 20% shareholder of IOC instead of above ownership in the JVOA. This would give more stability to the shareprice and would give more assurance to the other shareholders who opt for the long run. Statoil in Norway is a good example. A good move has been the office removal to PM. This can be seen as a token to the PNG government that IOC is strongly linked to PNG.

Why you would think that old 50% offer from years ago would be worth bringing up now that IOC has a deal for Total to acquire 47.5% net of PRL 15 is beyond me.  It actually is clear what role PNG is likely to play in the project.  They almost certainly will exercise their option to acquire 22.5% at cost.  However, there is absolutely no reason whatsoever to think they have any interest or capability to acquire any further ownership in the project or any ownership in IOC stock, or any reason to think that IOC would be pushing the latter.  Also, PNG already has their hands full dealing with their externally financed interests in PNG LNG and OSH.

[Palm]

Fact is Getit that Relker is right in mentioning the "up to 50%" clause because that was approved by NEC and signed by O'Neill and until the IOC/Total agreement is closed there are negotiations with the government going on. Remember what Hession said on the Dec 6th CC; "This deal is with Total." There are reasons for that, and one is satisfying the government that everything is to their liking. It also allows for things like "in-kind" gas such as that announced with the NEC approval of the EWI 30MW plant for PM. Maybe they want 25% to allow for some gas for domestic use. There still is a bit of negotiating to go. The government is very much in favor of the Total/IOC project, so things should proceed smoothly, but we all know how that goes. The full 50% was/is a bit of an anvil over IOC's head to be sure things go to PNG's liking. Again, they all know that, but we can't ignore that they may want SOME more than their 22.5%. "Up to 50%" is still there until the Gas Agreement is finalized.