"...They warned that any companies that had already entered into any form of agreements with InterOil like Flex LNG, Mitsui of Japan and Energy World Corp were at great risk of losing their investments.
They said all the Elk and Antelope gas resources were dedicated to the large scale LNG project in the December 2009 agreement with the state. “Any other project and agreements with EWC and Flex LNG “has no gas dedicated to it.
“Basically if InterOil announces FID, the Gulf Project does not have any dedicated gas for it,” they said.
The officials were concerned that the IOC/LNGL had sold 14.5% of the state resources to EWC, Flex and Mitsui.
“That is clearly illegal,” they said. InterOil has no right to pre-commit and sell gas through discounted price in order to build infrastructure by “forward selling” the gas for free and at no cost to InterOil, they said. Another serious concern was that InterOil had also not been granted a facility processing licence for the phased small-size project it was proposing for the Gulf province.
This was bothering the industry and the government, according to our sources.
They accused InterOil of playing the stock market to “beef up” its share value at the expense of the people of PNG..."