from stockhouse, Sintana chat board:
Hey Folks, Just had a back read of some of the oil chat boards over weekend and noticed there is still a lot of confusion/miscommunication being banded about on other operators, potential partners, most specifically re Shell.
So if if it helps, following is purely industry chatter and rumours.
Shell have been actively engaged in discussions with Galp since late July showing their hand after PBR made announcement of their bid. PBR at the time were interested in bringing in a partner on the deal but when it emerged the main contender or Galp's preffered partner option was Shell PBR reacted very defensively suddenly making statements of how they wanted to take the entire 40% stake being offered , and this was the only way the deal could work. PBR were desperate to try and close out Shell from negotiations.
One other point of "industry talk" that doesn't seem to have hit chat boards etc is , PBR have, as part of their proposal package, offered to include a FPSO for rapid EPS plan.
Shell are kings of LNG and effectively would take the lead in refit and EPS planning for injection system and top side separation/ compression designs, so would press to be operator, the position PBR are targeting themselves.
Early Sept many were already talking about fact Shell would not be going forward to any FDP studies with their block PEL 39. Hints were given publicly what was already being banded about Africa Oil Week that project was shelved for a number of years. Surprised there has been so much coverage on what has been openly discussed about PEL 39 for months.
Shell are desperate to be a part of the basin as a producer. I noted some comment that Shell walked from Galp data room on PCL chat. Nonsense, they are very much part of the plan and actively at the table.
There are another 2 very strong parties involved in this game of chess. This is the reason Galp started playing carefree hardball saying they don't need to rush matters and can, if neccesary, carry things forward themselves.
Galp have already acheived what they set out to do with the appraisal success, its simply strengthened their position and price any deal will be secured. This final drill , although important to prove up further targets, has very little consequences in the bigger picture.
Galp know what they have , as do the potential partners courting a deal. Its the market that seems to be lagging behind on potential here.
Slainte
p.s. I told a wild guess with another rumour speaking privately with a very well known and much copied on here blogger about PBR early June,6 wks before it was reported. I'll copy a paste of the convo to a well know poster on here an CEO.CA who can verify if needed.
(20min delay)