Hi mrmoshe, Shell have at least two high capital expenditure projects (in Australia jurisdiction) which have yet to resolve themselves. One being Arrow the other Browse. Browse is due for FID in 2015 re their proprietorial FLNG.. Arrow (partnered with PetroChina) has already seen a delay of $20B Plant. It wouldn't surprise me to see that they eventually partner with one of 3 existing processing plants. But I digress, my point being they have additional direct concerns other than just ES.
Being that FLNG is not really an option for ES due to the high methane content, that leaves basically two options as far as I can see at present. One a pipeline to mainland and an existing plant or Two being module processing plants at TS. I obviously tend to favour TS in this. Mostly due to the fact that TS is not a massive up front expenditure (compared to other option) and can be gradually added to or increased over time (modular speaking).
I hope to hear of a FID for ES or at least a possible direction, this year. I guess with Shell's present modus operandi it will come down to what gives them the best bang for their buck as to what projects get a start. Or as they put it "improve Shell's Capital Efficiency".
MEO Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
