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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Razorbak who wrote (987)	4/7/1999 7:13:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Razor, I remember your words of wisdom back in 1997: <<This is a gas project, and gas projects tend to move a lot slower than oil projects. I have worked on enough of these gas development contracts to know that things do not typically go as planned, and one must be realistic when assessing project development schedules. To be specific, I worked on one gas development project in Malaysia in 1995, and another in Australia in the same year, both of which showed similar signs of progress and both of which harbored lights at the end of the their own respective development tunnels, but both projects have still not reached financial closure, despite a world of good intentions and continual focus by eager project personnel.>> Have any of these projects reached financial closure yet? The last remaining issue is how Exxon and Chevron would divide up the integration of the project's gas reserves. As the project manager puts it: "the problem has been finding an appropriate way to cut up the proposed pipeline's financial "cake" while the partners were still trying to define exactly what the cake was." Oil Search still claims a deal is close, they say "Chevron and Esso just need to pool mutual gas reserves, that's the last hurdle". They expect a final deal before summer.

To: Razorbak who wrote (987)	4/8/1999 8:15:00 AM
From: Tomas	Respond to of 2742

Papua New Guinea pipeline project: Delayed start but faster work timetable AGL sees 2000 PNG gas pipeline construction start MELBOURNE, April 8 (Reuters) - The Australian Gas Light Co said on Thursday the start of construction on the Papua New Guinea to Queensland gas pipeline would be delayed to 2000 due to prolonged negotiations surrounding the project. A timetable set down a year-ago had construction on the A$1.5 billion pipeline scheduled to begin this month with first gas to Queensland by October 2001. AGL group manager corporate affairs Bill McLaughlin said a delayed start to construction would be partly offset by a faster work timetable to complete the project. ''We are looking to commence that construction next year and we are still hoping to target the end of 2001 to early 2002 for first gas,'' he said. ''The biggest problem is that we don't control the timetable. It is in the hands of other people.'' AGL and Malaysian state-owned Petronas were selected in May 1998 by project proponent Chevron Corp to build, own and operate the 2,300 km stretch of the pipeline from the PNG-Australia sea border to Gladstone in Queensland. The final project go-ahead is still hinging on agreements to secure gas supplies from fields in the PNG highlands and on winning sufficient Queensland demand to satisfy financiers. Gas for the project would be sourced from the Kutubu field operated by Chevron and the Hides fields operated by Exxon Corp, but the companies have yet to conclude a deal. Chevron has said it also needed to secure foundation customer contracts of 100 to 120 petajoules per year in Queensland for the project to proceed. McLaughlin said even if financial close was delayed into the first quarter of 2000, the pipeline could still be completed without further significant delays. ''There are things we can do to circumnavigate that,'' he said. Under the construction programme, the pipeline would be divided into four or five sections, with a more rapid work timetable allowing more sections to be constructed simultaneously. biz.yahoo.com