The more times I read the CEO's statement, the more I am convincing myself that he is referring to negotiations that are fairly advanced.I think we could be looking at a "Spring of Content" with further updates within the next few months.... The "next step to concluding negotiations" comment does not have too many interpretations and would prove difficult to swerve....so he has put himself in the frame with no way out if there is not a fairly imminent conclusion to these negotiations....most certainly this year but IMO much much sooner...
"We are very pleased to have signed definitive agreements for our gas project and are now focused on the next step of concluding negotiations with potential partners, and moving the gas project towards the FID. We are determined that 2017 will be a watershed year as we seek to create a gas business that will be transformational for both Genel and the KRG."
Some of the principal conditions precedent were indicated in that same RNS:
The GLAs contain conditions precedent, which, inter alia, include the execution of final agreements on the midstream gas processing facilities and pipeline transportation, the execution of the financing documents and the completion of updated competent person's reports for Miran and Bina Bawi.
To avoid the KRG's termination option, Genel needs to complete these conditions within 12 months.
Hawkey yes we're going to need to wear our tin hats for the Taq Taq CPR, barring a miracle. Oil price needs to hold for KRG finances to stabilise but in the short term, shale oil being produced ever more cheaply is unhelpful. In the long term poo will recover due to present day investment cut-backs and ever increasing world demand, despite the lunatic demands of the Green lobby. Genl has conservatively saved $400m cash with an eye firmly fixed on it's liabilities and I think that gives us great hope for the future. It needs a regular payment regime. Beyond that, a gas development partner, poo at $60, oil discoveries in Morocco and Somaliland and improved output at Taq Taq are all that's needed. In the meantime, as usual, it's all about the payments.
are expected to show another increase shortly when data is released at 9.30 our time. do wonder if OPEC is becoming increasingly redundant, as even with cuts , it has been unable to really bring the oil price up to any great degree as US production will always act as a drag? America produces roughly 10 million bpd , I believe, so unless there is a dramatic cutback there I don't see how oil can rise significantly from its current level? If OPEC were to cut further then more US oil can be produced - bit of a catch 22 now that OPEC never faced in the past. hoping the additional gas projects can add value to Genel , even if oil fails to act as a catalyst.
"Both Genel and the KRG have the option to terminate the GLAs by February 2018. If the conditions precedent are not satisfied within 12 months, the KRG has a right to terminate the GLAs. During a three-year period following such a termination, Genel would have a right of first refusal to participate in development of the Miran and Bina Bawi gas fields with a 49% working interest on the same terms offered to any third party"
What does the bit "if the conditions precedent are not satisfied in 12 months the KRG has a right to terminate the GLAs" mean ????
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