Hi again,Here's the TMF post I speak of posted back in March....

Hi again,

Here's the TMF post I speak of posted back in March. Certainly had the mind ticking! Well done to aja004 from TMF.

Cheers,
xmagx

http://boards.fool.co.uk/Message.asp?mid=9179861

Author: aja0004 Number: of 2198
Subject: Tiof Developments? Date: 16/3/05 11:43


Does the Tiof Operator already have a development plan in mind, and is WPL (Woodside) and the JV going about it with some sort of stealth?

WPL has recently bought out Shell in the Laminaria-Corallina (L-C) development. Was very interested to read about this, as there is not too much up-side to this asset other than 'infill programs'. Also, I do not consider WPL to be a bottom feeder type player.

So why are they increasing their stake?
And then it came to me; the L-C development by way of an 180,000bopd FPSO 'Northern Endeavour' is 5-years past peak production and currently producing at 40,000bopd. WPL could easily substitute an FPSO with lower capacity to this filed and take the larger one for Tiof. Perhaps cheaper operating costs too?

I did some further research and see that WPL has first right of purchase over the Laminaria-Corallina assets (at fair market price). Wouldn't be surprised if WPL and Paladin (other partner in L-C) agree to a shuffle of equity for WPL to get 100% of FPSO for Tiof.

What does this mean for development plans if it were true?
Could Tiof oil see the market sooner that expected?
Is 180,000bopd an expected production rate?
Would the 'Northern Endeavour' help in reducing the eventual development cost of Tiof?

I have no inside information here, just hypothesising.

What do you say?