HOME ABOUT US ADVERTISE SUBSCRIBE HELP CONTACT eMag  
Saturday
1 November 2014
Make PNG my HomePage 
 
Gulf LNG announcement looms: source

INTEROIL is gearing up for an important announcement this Thursday according to an industry source. PNGIndustryNews.net receives contrasting views from the source and from InterOil chief financial officer Collin Visaggio.

The source is well connected in Papua New Guinea and has provided some concrete leads before.

Most recently it resulted in our story on Friday in which Visaggio confirmed that more than one supermajor was involved in the bidding process for an operating stake of the Gulf LNG project and its Elk-Antelope field in PNG.

Yesterday the source told PNGIndustryNews.net that InterOil was attempting to sell half of the project to the PNG government at what it deemed to be a “commercial price”.

He then expects the government to try and market the stake, especially to get its share of development costs carried by another party.

The source further expects the deal with the government to be on similar terms as InterOil’s complex joint venture agreement with Pacific Rubiales Energy – the Colombian oil producer which agreed to buy a 10% stake of InterOil’s licence that hosts its Triceratops discovery for up to $US345 million.

“They are gearing up for some big announcement on Thursday which they will clearly try to dress up and say that the state will buy the gas at the same terms PRE paid, which the state may well try and hawk around for a carry on those terms but it will never get it,” the source said.

He also believed InterOil was most concerned about carrying out the modular LNG plans to monetise half of the EA field resources through Energy World Corporation.

He even said InterOil struck a deal to sell this modular LNG project to China National Offshore Oil Company three years ago.

InterOil responds

Visaggio is legally restricted on what he can say but told PNGIndustryNews.net that InterOil aimed to sell 25% of the Gulf LNG project as its optimal target for an operating stake.

“We always said we would sell more if it was hugely accretive to shareholders,” Visaggio said.

Based on a deal that a 25% stake is sold to a new partner, Visaggio said InterOil would have 40%, its long-time partner Liquid Niugini Gas would own 12.5% while the PNG government and landowners would collectively own 22.5%.

While his comments are at odds with what the source said, Visaggio could not comment on what was raised about CNOOC for legal reasons.

It should be noted that Prime Minister Peter O’Neill has recently returned from a trip to China.

In regards to the resources on offer, the source claims that five significant players have calculated estimates that vary from 4.8 to 5.5 trillion cubic feet of gas.

Visaggio said the certified resources were 9.4Tcf equivalent.

Share this story:

Click here to read the rest of today's news stories.

 



Company Search




Story Search

Advanced Search
LATEST NEWS

Biswas maps path ahead for Newcrest


PanAust on track


PNG Sovereign Wealth Fund endorsed


Ports Corp completes Lae wharf extension


OceanaGold turns a profit


Chevron project delayed, says Indonesian official


Global Wrap: Cliffs, Ivanhoe and more


The diverging pathways of two top oil companies


Land report on Mt Kare signed and sealed


Ramu ramps up

RELATED LINKS

[COMPANY]
-INTEROIL CORPORATION
[SECTION]
-Oil and Gas
-General News
[REGION]
-PNG
[RELATED STORY]
-InterOil shuts out Shell: source
-Bids from supermajors: InterOil CFO
-Day traders beware: comment
-Antelope-3 spud looms
-Australia and PNG face policy issues over gas supplies
-Indonesian company makes Gulf LNG claims
-Gulf LNG deal nears
-Enough for 8Mtpa: Visaggio
-InterOil integrity issues: Wantok*
2v-good.JPG
[OTHER]
-Printable Version
-Send to a Friend



UPCOMING
EVENTS
Technical Report Writing - Brisbane
Technical Report Writing - Johannesburg
Technical Report Writing - Perth
Mine to Mill Zambia
AusRock 2014: Third Australasian Ground Control in Mining Conference
Mining for executives, managers and investors
  View all events