Let us not forget that XOM won the bid. They outbid the other bidders. IOC is involved in exclusive negotiations, and there is a lot of legalities in turning a term sheet into a Sales Purchase Agreement. Once that is completed it will go to the PNG government for approval. Exxon is currently winding up their 1st and 2nd trains and PNG workers are being laid off. I am guessing that the government wants them to get to work ASAP again, so I believe that the government would move quickly in it's "signing off" of the SPA between IOC and XOM. I believe the deal will provide enough cash upfront to alleviate any concerns over cash flow. This is the sell down of EA IOC has been working towards. No licenses are set to expire until march of 2014 and IOC will reapply. being one of the most successful exploration companies in the country, there is no reason to believe they will not be granted approvals. The BOD voted unanimously that the XOM deal is best for shareholder value. The deal was compared against the others and it offers the best Net present Value. PM Oneill made the 60 day comment roughly 30 days ago. IOC and XOM have not denied this time frame, but have stated they did not place a timeline. Oneill is the only one to mention 60 days. Major shareholders are on board with this sell down because they believe it will be a step towards unlocking the wealth and potential of PNG's assets with IOC.
$10,000,000,000 is alot of $$$$$. I think this is the approx value of the deal for 1 train, capex and drilling costs paid for by XOM. 2 trains better and then add in at some point Tri and others. The numbers become hugh.
Once the deal is consummated between IOC and xom, is that considered material and will the market be notified in a release or will we wait until the PNG govt approves? Just curious if that will be announced prior to the govt approval in your view?
Holywallst. Do you believe Exxon would enter into exclusive negotiations if they were not serious about a partnership/deal? What does Exxon gain from allowing this information to be disseminated and not being 100% interested or serious?