Lundin Oil (LOILY, LOILB Sweden) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tomas who wrote (2078)	2/27/2001 9:41:34 PM
From: Tomas	Read Replies (2) of 2742

PNG-Queensland Gas Project - From Orogen Minerals Market Report, February 27 Marketing discussions with potential customers resumed in the fourth quarter following the issue of interim authorisations by the ACCC allowing ExxonMobil and Santos to join the Gas Marketing Team. In addition, good progress was made on the PNG Gas Agreement with key elements, including income tax rates that will apply to the Project, passing into legislation with the approval of the 2001 budget in December 2000. Little additional work is now required on any of the major aspects of the Gas Project pending the initialing of Gas Sales Term Sheets. Gas Sales Term Sheets remain the most critical milestone to be achieved before Front End Engineering and Design (FEED) can commence. _________________________________________________ Article in The National, February 28 PROGRESS had been slow on the PNG-Queensland Gas Project last year, Orogen Minerals said in a market report released by the Port Moresby Stock Exchange. Orogen which holds a 13 per cent interest in the project and has an option to acquire a further 10.25 per cent, attributed the delay to the integration of Hides gas reserves and the need for Australian competition watchdog ACCC's approval for new participants Exxon Mobil and Santos to join the gas marketing team. However the company also said the passing of the Queensland Clean Energy Policy and the approval of key elements of the PNG gas fiscal regime in the 2001 budget threw some encouraging light on the status of the project. Orogen said a definitive framework for a decision to begin Front End Engineering and Design (FEED) for the project was agreed by project participants. Important issues related to the project are gas sales agreements with Queensland customers, PNG gas agreement with the State, PNG infrastructure ownership, gas transportation arrangements, project schedule and gas reserves ownership. It said negotiations for gas sales agreements with major potential Queensland customers had re-commenced with Queensland government-owned corporations awaiting advice from their government prior to finalising the terms of gas sales and purchase agreements. It said the calling of an early election in Queensland served to divert attention from the negotiations, but renewed impetus was expected following the re-election of the incumbent Beattie government on Feb 17 this year. The PNG component of the project had already been passed into legislation with the approval of the 2001 budget in December 2000. The Government has also announced its intentions to incorporate in the Gas Agreement a fiscal stability clause for a period of 20 years after commercial production with the agreement expected to be finalised once gas sales terms have been signed. A 30 per cent equity interest in PNG infrastructure associated with the project to PNG "State interests" has been offered by the project sponsors. The Government has announced that a single umbrella company would represent all "State interests", including landowners and provincial governments. The total investment required for PNG entities to take advantage of this opportunity is approximately US$400 million (K1.3 billion). Orogen said constructive discussions between PNG and Australian governments were held last year and there was possible provision of funding assistance to PNG entities. Work to amend the Gas Transportation Agreement with AGL and Petronas to include transportation from Gladstone to Brisbane were on target and contracts would be finalised once gas sales volumes were agreed. It said upon confirmation of gas sales volumes the project would move swiftly into the FEED phase and first commercial deliveries of gas to Queensland customers was expected in 2005.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next