Re: Article on Civelli from Vancouver Sun
People who have been at meetings with Phil suggest the reverse may be true i.e. he is more willing to do deals than is Cavalli's group. Hard to say. One thing that is clear though is that what they are selling is an independent supply of LNG not linked to EXXON. EXXon seems to control most of the major LNG producers so that buyers may even be willing to pay a premium to have an independent supply. Even at the bottom of the market range, IOC does very well because our cost of production is so low. Look for several announcements of off-take agreements this year. The reality that Indonesia's supply will decline sharply in 2011 has hit the Japanese and other Asian buyers. They are all out trying to get long term-independent supplies of LNG and that is what we have at very fair pricing. SC4