News - Total assumes Operatorship of PRL15

[Optionray]

http://finance.yahoo.com/news/total-assu...00564.html

[Li'loilady]

Singapore and Port Moresby — InterOil Corporation (NYSE: IOC) (POMSoX: IOC) and Total E&P PNG Limited have agreed that Total will become operator of Petroleum Retention License 15 in the Gulf Province of Papua New Guinea from August 1, 2015.

On February 27, 2015 InterOil announced that the PRL 15 Joint Venture, which is developing the Elk-Antelope gas discovery as the Papua LNG Project, had unanimously appointed Total as the operator, subject to an agreed transition plan.

InterOil Chief Executive Dr Michael Hession welcomed the agreement with Total.

“We now look forward to Total bringing its global LNG experience and resources to Elk-Antelope to develop what we anticipate will be the world’s lowest cost new-build LNG project,” Dr Hession said.

“This represents an important milestone for the Papua LNG Project as the Joint Venture continues to drive towards the earliest practical development of the Elk-Antelope resource.”

Under the Operator Transition Agreement, InterOil will continue to provide certain technical services for Total until the end of 2015. InterOil will continue to operate its remaining retention and exploration licenses in Papua New Guinea.

Under the Operator Transition Agreement, InterOil on behalf of Total will drill the Antelope-4 sidetrack well, which is expected to begin drilling soon.  Total will then operate the Antelope-6 well.

The Papua New Guinea Department of Petroleum and Energy will be advised of the effective date of change of operator.

[Tusker]

Thanks OPI

Mention again. Total has a 100% completion rate of projects it has operatorship status. The transit of 70 plus French families to PNG is not for holiday. Facts on the ground my friends.

Cheers

[Tree]

One small step for the timeline, 1 giant step for the JV and PNG

[jft310]

The legal framework is coming together .

[Palm]

Good to get this confirmation. Tucker's point is important; once Total commits at this level there's no going backward. IMO they are convinced the quantity of gas is there for a 2-train startup and expansion. Tomorrow begins a big important chapter in the IOC story.

Toot toot Tucker!

[Stavros]

Oil Search already informed us in their ASX Filing on 21 July that all advisors are in-place and working on Project Development:

"Work has also commenced on the financing of the Papua LNG Project, with the PRL 15 Joint Venture recently appointing key advisors including Credit Agricole (Financial Advisor), Milbank (International Legal Counsel), Allens (PNG Legal Counsel) and PwC (Tax Advisor)."

People seem to have forgotten this very important announcement!!!!

[jft310]

I missed that info Stavros more progress. Thanks

[Getitrt2]

Raymond James comment: "While it’s more or less a formality, today’s headline confirms Total’s commitment to this project."

[Stavros]

See page 4 of the announcement JFT.

http://www.oilsearch.com/Media/docs/1507...89e1-0.pdf

It says:

QUOTE
Work has also commenced on the financing of the Papua LNG Project, with the PRL 15 Joint Venture recently appointing key advisors including Credit Agricole (Financial Advisor), Milbank (International Legal Counsel), Allens (PNG Legal Counsel) and PwC (Tax Advisor).

The Papua LNG Project has the potential to have a similar impact on PNG’s Gross Domestic Product and export revenues as the PNG LNG Project. This would result in a significant boost to economic activity and opportunities for the people of PNG, particularly in the Gulf Province, where the wells, onshore pipeline and CPF are located. Progressing this project to the earliest practicable FID remains one of Oil Search’s highest priorities.
END QUOTE

No one has commented on the second paragraph above, which has been quoted in several articles. The fact that Papua LNG ... "has the potential to have a similar impact on PNG's Gross Domestic Product and export revenues as the PNG LNG Project" is very telling.

===> To my humble opinion, the only way Papua LNG can even remotely have such a similar impact on GDP and export revenues is if it's a 2-train LNG Plant. Furthermore, anyone with knowledge of Botten's CEO-speak knows that the phrase "has potential" really means "we already decided on 2 trains." He is not prone to over-state anything regarding PNG and PNG politics that could later come back to bite his arse.