The strategic move in the game of corporate boardroom chess happened back in July, by SingPetr. who later got taken over by Petrochina (in Oct '09).
If MEO can rope in PBR/REP/??, then CUE already has Petrochina onboard with its 16.31% stake.
Read this about SingPetr. foray into CUE
The logic behind this move was very simple. China needs gas & its common knowledge that the Japanese are the regular buyers frm WA & NT's two producing LNG projects, i.e, NWS JV & Conoco's plant at Bayu-Undan. (Note that all the deals we hear about, frm WPL's Browse basin, Exxon PNG & Gladstone are all future LNG deals).
So while the Chevron & Co were busy selling the gas frm Gorgon & a small stake to the Japanese, IMHO, Petrochina have taken the best seat in the house by sneaking in thro' the back-door i.e CUE.
It's easy to get a foot in the door (or walk away with the door) esp. when u r dealing with a junior explorer in need of cash to develop a project in the North West Shelf.
Like every exploration project their are risks (drilling/development/budget), but there's also imminent pay-off, should the first well prove HC's in the area.
Keeping it very simple, 12 tcf of recoverable gas equates to 240 mil. tons of LNG & MEO should get 2.4 tcf or 48Mt's of it (assuming its all there post-drilling)plus the 140 mmbbls of recoverable condensate. So lets hope firstup, that the deal is as good as the prospect.
2morrow is another day.
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