rumours due to start, page-10

Hi denman,

Not sure, if your meaning is completely clear here ...??

However, STO's interests in PNG are a hangover from
better times in that country.

Exploration in PNG goes in cycles and right now it is
not really considered as desirable territory.

With this lack of interest, the trend seems to be the
contracting out of drilling commitments ... where the
day-to-day onsite management of the well is taken
on by a contractor, rather than the operator.

Bilip-1 falls into this category ... ???

Over recent years, the wane in exploration interest
in PNG has seen some oil companies and drilling
contractors alike pull out of PNG, altogether.

.... and maybe that process hasn't finished yet.

STO made a token bid, when the OSH-OML merger
was on the table, but without firm gas sales there
would be no project, so the bid was consequently low.

No doubt, there will still be moeny made in PNG from
oil production, but until there is commitment to a
gas plant, like LNG or a gas-to-liquids plant,
exploration for more gas in PNG will take a back seat.

It's one thing to have the gas in the ground, but unless
there is a ready market, in the ground is where it will
stay.

Australia has plenty of gas, we just need to complete
the national gas grid to make the vast reserves
available to everybody.

hot trades

yogi