I think this spat with EWC is based on a perceived exploitation...

I think this spat with EWC is based on a perceived exploitation of Indonesian resources by foreign companies and there are factors in how EWC came to have such an arrangement that R. Priyono is aware of.

The Tokyo Gas deal went through after the Sydney SBY rep meeting and was immediately rebuked by R.Priyono, who not coincidentally had put the brakes on an earlier Tokyo Gas arrangement. Tokyo Gas due diligence has missed this possibility by a country mile, possibly cloaked in Packer and SE enthusiasm, albeit for their own reasons. Having Tokyo Gas on board will benefit EWC long term but maybe not in this spat.

imho only, R. Priyono is testing to see whether he is able to score any runs for himself by rolling back the (generous?) export clauses of previous PSC's and EWC is the first fish to be cleaned, because he already knows it inside out.

There is also pressure being put on EWC by regional Govt in the form of 'a student protest' (07042010) for alleged failure to fulfil monetary obligations to local govt and communities. (protest now and if some money comes, you can have some) This is the second instance lately of local govt vilification of the mngmt. of Sengkang power station.

Packer et al can see their investment dwindling, and so have urged Tokyo Gas into the equation on promise of fulfilling a PSC clause that is under threat of not being able to be exercised until a lot of hoops have been jumped through.

R. Priyono has little to lose and a lot to gain from manipulating EWC business in Indonesia. Stronger protection of resources in >> past << and future agreements is probably not the only benefit to R. Priyono.

EWC is far smaller than many of the other gas partners the Indonesian govt has ( Chevron,Total,BP) and altering EWC business arrangements in Indonesia for whatever reason (and there are a few on the table already), is hardly going to dent Indonesia's reputation for doing business with companies already entwined or compliant under the new regime's terms. It may even help persuade other partners to be more amenable to halting perceived exploitation. Bringing Tokyo Gas in raises the profile of altering the export clauses, I think the student protest was orchestrated to give SBY a message in response to the TG HOA. Extraction of local resources by foreign interests is a popular topic as evidenced during the elections. The local governor is also firmly onside with R. Priyono so SBY decision could become one of popularity rather than international business reputation, especially if an orchestrated campaign was waged against EWC which rapidly is looking likely.

R. Priyono has put in place a way of saving face for himself also, all EWC has to do is a whole lot of seismic and drilling to confirm the resource for LNG.

Personally I think SE and R. Priyono go back a long way together (Energy Ministry) and that relations may not be very good between the two, (asian crisis days.)

The coincidence I find astounding is the Indonesian report of the cancellation of the Bone Bay Exploration area and the decline of the SP from the same day, 30-06-2009, and only an obtuse, by the way, un-named non-specific, buried, comment four months later from EWC. If anyone mentions that it was "out at sea" then consider the PNG exploration area in more dangerous waters.

Do any "positive thinkers" also find any relevance in that coincidence ? , second question is what was the reason for the EWC SE roadshow about a month and a half later if not to drum up retail support because of it's ramifications ?

ifandwhen