Silicon Investor (SI) -- The First Internet Community

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) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (2497)	6/8/2001 3:28:37 PM
From: Greywolf	Read Replies (1) \| Respond to of 2742

Talisman talks with Lundin Upstream 17:13 GMT Canadian independent Talisman Energy is understood to be in advanced talks with Lundin Oil about buying a substantial part, or all, of the Swedish company. Talisman may have pipped US oil company Amerada Hess to a deal. Amerada is understood to have been negotiating with Lundin until recently. Banking sources suggest Talisman boss Jim Buckee may have put together a deal that will value Lundin at around $3 a share, although there has been no confirmation of this. Rumours suggest Amerada's talks may have been about a price closer to $2. Lundin Oil said last month it was in talks about selling part of the company. In an official release, it said it was "evaluating financing alternatives for the development of its extensive oil and gas reserves" and that the company "has had discussions with other companies in the oil sector regarding a possible corporate acquisition of the company combined with a spin-off of certain assets". Lundin Oil has interests in Sudan, where Talisman is a big player, Libya, Malaysia, Vietnam and the North Sea. Average daily production is more than 13,000 barrels of oil equivalent -- a figure that with added assets could grow substantially over the next five years. The company is listed on the Stockholm Stock Exchange and on the Nasdaq. - Given the valuation of Lundin the deal must be structured for only a smaller part of the reserves and or other factors as $2 or $3 or even twice that is cheap.. More to come one assumes.

To: Tomas who wrote (2497)	6/10/2001 7:28:57 PM
From: Henrik	Read Replies (2) \| Respond to of 2742

Hopes fade for PNG pipeline By Nigel Wilson, Energy writer June 11, 2001 HOPES are dimming for the giant $6.5 billion Papua New Guinea gas and pipeline project with one of the main players blaming both the Australian and PNG governments for shortsighted policies. Oil Search chairman Trevor Kennedy said the project was being badly affected by Australian government parsimony and the inability of PNG to deliver community services to landholders. Already the operator has announced a further delay in a start-up date, while local landholders have been killed in a dispute over their share of the project. Speaking in Port Moresby, Mr Kennedy claimed recent clashes between landholders were the result of the Government in Port Moresby failing to deliver on promised schools, hospitals and roads to which project participants had contributed as far back as 1990. Last week at least 25 people were reported killed as rival clans fought over ownership of land earmarked for the project. Mr Kennedy's remarks came after the new project operator, Exxon Mobil, pushed out the start-up date for gas delivery by two years to 2005 following the inability of project marketers to sign up firm contracts with Queensland customers. Mr Kennedy told Oil Search's annual meeting on Friday that, given the expected benefits of the project, it was disappointing that it had not been embraced more purposefully and determinedly by government. "While it has the support of all political parties, governments on both sides of the Torres Strait haven't given it the high priority it deserves," he said. "The Australian Government's support has so far been little short of parsimonious, amounting to little more than $15 million in political risk," he said. Exxon has a 30 per cent stake, Oil Search has 26 per cent and Orogen 13 per cent. Other partners include previous operator Chevron, Santos, Japan PNG Petroleum and local landholders. The Australian Government in February reiterated that it believed the pipeline project was important for PNG's future development. It has major project facilitation status, meaning that once committed it will receive rapid Australian government approvals. But the Government has consistently rejected the view that it should loan money to the PNG Government so that it can take up a $700 million equity position in the project. Mr Kennedy said the venture was of critical importance both to Oil Search and the PNG Government but progress to commercialise PNG's gas reserves was frustratingly slow. The project, which is still awaiting formal approval, involves construction of a 3250km pipeline from PNG's gas reserves, across the Torres Strait to Gladstone with a possible extension to Brisbane. But Mr Kennedy confirmed the project still had to secure markets and without these it could not agree to engineering studies. Gas has been promoted to a string of minerals processors, industrial operations and electricity generators along the Queensland coast but no firm contracts have been signed. The PNG Gas project would also involve stripping 15,000 barrels of condensate a day to meet PNG transport needs, and the production of LPG. The project proponents were rocked last month when Woodside and Shell announced they had an exclusive letter of intent to supply Queensland Nickel's Yabulu nickel and cobalt refinery at Townsville with gas from the Timor Sea Greater Sunrise reserves. Mr Kennedy described the announcement as a wake-up call for some parties who thought that Timor Sea competition was not there. Mr Kennedy said the project would help stabilise PNG and the region, and so a "prevention is better than cure" attitude should characterise Australia's approach. theaustralian.news.com.au