The new President, Hession, made a deal with Total to sell them a portion of the NG in PRL 15 and also be co-operators of a new LNG plant to be built, if the additional appraisal wells verify that the NG previously found, is actually there and can be produced to the extent that it could provide for the requirements of the new plant.
The upfront payment came up short of what the market was expecting due to the fact that Hession stated it would be a good deal. The 30% of the plant IOC will partner with TOT was also a factor, as this had to reduce the take of TOT. Had IOC sold NG to XOM and then to TOT, the stock would likely be over 100. Right now, it is below 50 on the close today and may fall further, however, there could be a short-term rise, as it is really oversold, having been nearly cut in half since the deal was announced DEC. 6th. IMO, they should have been satisfied to just sell the NG and taken the large payouts. The LNG plant may not operate until 2020, another reason for the stock cratering. They should really try to get the PNG gov't. to agree to a FLNG. They could move the ships to each prospect as they petter out and their availabilty would cut years off the NG sales. they could get ships in a couple of years to handle a smaller volume.
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