More from the land of fun and games- that conference call was classic IOC- Phil's ol snake oil about the PM and co specifically visiting all his great works in the Gulf- ha! The PM and his friends went to the Gulf for a whole range of things- mainly to look at the road network- Phil pushed his sideshow into the agenda...and as for the nonsense posts here about a JKM bid- THEY DONT OPERATE A MOLECULE ANYWHERE! they will not be accepted under the project agreement (which NO ONE is actually changing) even IF they bid- though rumour says they aren't anyways....and man is there some gibberish over the price 1.50 per mmscf...did anyone of you pump idiots look at any recent deal benchmarks- eg what Repsol just got for selling 4 mpta of DEVELOPED and DELIVERABLE LNG?? and you seriously think IOC will double its already massive overvaluation for an unverified, undeveloped resource?? There are some simple people in the world....bottom line- the game is up-they held the conference call to avoid answering q's on the "sell down"- they will try and hang onto the Gulf/EWC project- claiming none of the "bidders" could agree a reasonable deal- and then the Gov will tear up the project agreement and strip the license next year...and there will be a proper tender. Unfortunately for Phil the PM isn't Somare anymore- and nice words and snake oil wont cut it anymore...see ya!
The average range is approx $1.20/mcf, and that includes bottom of the barrel fields. IOC's AE field is world class and will get more. Also how do you explain the Pre deal for Tri at $2.85/mcf ? You can't !!
"Also how do you explain the Pre deal for Tri at $2.85/mcf ? You can't !!"
The $2.85 "resource payment" wasn't actually paid. It is:
a) contingent on actual ultimate production
b) many years in the future
c) only kicks in after PRE gets its money back
d) only "paid" out of future production
e) requires IOC to spend an addition $600 million of its own money in further expoloration
f) has a money-back guarantee for all cash amounts except for the initial $20 million
g) is a "friendly" deal given Clarion's linkages to the founders of PRE
If you have a house worth $1 million, I will give you $50,000 cash for it now. Then I will rent it out for $50,000 per year and we'll split the cash 25/75 - so you get $37.5K of the rent, but I get the first $50K back first. We'll run that deal for 30 years so you get $0K the first year but plus $37.5K per year for the remaining 29 years. That's about $1.15M total over a 30 year period. Now run along and tell your pals you you just scalped some chump by selling your house for 15% more than it's worth.
forgot to ask - who or what is JKM? Please help me. I think you'll find that the references are referring to LNG pricing with the Japan Korea LNG marker price from Platts, not an operating company. And you're surprised that 'they' don't operate a molecule'? Good grief!
Oooops my bad - Japex Kogas Miitsui. But to say they don't operate anything is ludicrious - Japex operates Kangean (300mmcf/d production) in Indonesia, for example. I am not sure if Mitsui operates anywhere, or is simply a non operator. Kogas is one of the largest LNG operators in the world, so to say they don't move any molecules is simply wrong.
Another short liar on ignore. O'Neill is very supportive...the range of prices for deals is all over the map, so $1.50 is actually around average. And assuming that JKM cannot hire out to build the plant is nonsense. Many supers hire this out themselves. Go try to cheat your grandma again and leave us alone!