Total in no rush to start Elk Antelope

[hirosan]

I just the transcript of Totals CC on Seeking alpha. A guy from HSBC asked about timelines on Elk Antelope and total have not yet sorted out the legal frame work. TThey won't consider FID till they can sell the gas and are in no rush to do. When they have done this they will hopefully (Totals word) sanaction the project.

I have attached a pdf as i can't seem to be able to paste. Can someone who has a line to IR ask them about this

[Putncalls]

They should have about 2.5 billion in motivation invested in Antelope soon. That might help. The ample supply of cheap LNG isn't going to help the pre-sales though.

[jft310]

More from transcripts.Seeking Alpha.

In Total, a taskforce has been created with key account negotiators to renegotiate contracts with our biggest provider. And when you think about it, we are launching some value engineering process, you think about Uganda, Elk-Antelope or Libra which are the three forthcoming project one can think about.
From this comment they are in completely .

[Getitrt2]

They said they are currently working on the legal framework of the project. They are also well into the process of moving numerous Total personnel and their families to PNG to take over operatorship of PRL 15. They are also currently working on the Basis of Design for the project, and working on selection of a Financial Advisor for financing. Total has already invested a great deal in Papua LNG.

There is no reason to be in a rush on selling the gas. They have a good year and a half for that, and that normally comes before FID. IF anyone can find satisfactory customers, Total can.

There is no need to ask IOC's IR about this. They have already stated categorically that Total is committed to the Papua LNG project, as has the PNG government.

[Palm]

The comments being made make sense and are in line with what IOC has been saying; they are value-engineering the project and that is the first priority and one of the reasons the project is being located where it is; lower cost. They are looking to take full advantage (as Hession has said) of the downturn in the market; lower costs from contractors, number of wells needed, lower wages, etc etc. Only when they have a good handle on costs can they know what price they need from buyers to hit requred/desired IRR. Costs are everything.

Once they have this in hand they can approach buyers and financers. So to take the comments and turn them to say "they are in no hurry" on the whole project is a bit disingenuous.

[jft310]

A better title might be working smart !!

[ArtM72]

Moving forward evaluating strategic alternatives at measured pace

[jft310]

A friend listened to the Total call and read everything they put out about the quarter .
He had 5 takeaways
1)Elk /Antelope is a Total top 3 project , first time they have ever said that !
2)Because of the drilling results E/A is in a higher position for approval
3)Legal framework means working hard to get project approved and started.
4)Cutting costs means the project costs even less to build
5)Not rushing in for LNG contracts because this is the lowest cost project on the globe and people are coming to them .
Former research analyst with grey hair .

[Palm]

Nice, thanks JFT!