As an employee of a Mining Company in PNG I too am feeling the ripple effect of this UBS loan.
By Brian Kramer
IPIC Chairman, Sheikh Mansour bin Zayed Al Nahyan
There has been many misreporting and misconception on the IPIC deal and recent UBS Loan so for the benefit of the readers I have provided a simple explanation to hopefully better help people understand the issues
International Petroleum Investment Company (IPIC) deal was not a loan. In March 2009 we sold our 17.6.% equity (shares) in Oil Search to IPIC to raise $1.7b to fund our equity (19.6%) in the PNG LNG Project.
At the time Oil Search shares were only worth just short of $5 per share and the total shares were not worth anywhere near the $1.7b we needed. So we sold them under a special share sale agreement on its projected future value in 5 years time (2014) once the construction on LNG Project was complete which was projected to be $8.55 per share.
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