the problem is that the o and g law has already been signed sealed but not delivered. ICG just wont pay up so what is the point of signing another one which will inevitably take a few more months, than they wont pay up and we will then be in 2016. need someone with deep pockets to get us on the cheap while the krg bide their time for independence.
http://dinarvets.com/forums/index.php?/topic/200985-new-oil-deal-between-baghdad-and-the-kurdistan-region/#ixzz3XfEM8gFG Kurdish lawmaker said on Saturday, a new oil deal between the federal government and the Kurdistan region, and denied non-delivery of the provincial government of Baghdad and imports nearly two million barrels of oil as one under media. The MP said the coalition of Kurdish blocs Masood Haider SMC / scales News: "The lack of the federal government is unable to repay 17% of the region's share of the budget and the inability of the province on the export of 550 000 barrels of oil a day under the last oil deal, a new agreement was between Baghdad Arbil and that the federal government pay amounts to the region in the light of the amount of oil that her breast during this year. " He added that Haider "the oil agreement between the federal government and the Kurdistan region became law and published in the Iraqi Gazette on according to the Iraqi constitution," denying non-delivery of the provincial government of Baghdad and imports nearly two million barrels of oil exported during the past months. " He explained that the federal governments and the Kurdistan region are the only party responsible for the oil agreement and related activities by the ".29- 3 / h
I've been reading the 320-page Convertible Bond document and it's very revealing. Firstly, Gulf had implied that the Convertibles would - not might - convert into shares after 5 years. The low-ish interest rate was because of the upside from that conversion. The figures for Shaikan are 13.7 billion barrels OIP P50, which was later presentationally undermined by the disputed CPR. Shaikan was described as being worth some $5.3 billion in the CPR, based on Excalibur's valuation, though as usual Gulf sidestepped the question of what its own assessment was. Clearly, there was a substantial perceived risk posed by Excalibur.
The achievement of 100,000 bopd was to be reached by 2015. Clearly this won't happen...why? I'm finding that question harder to answer than I thought. This is because the document days that less than $350m to $500m would be needed to reach 150,000 bopd. The total development cost for Shaikan was put at $7 billion to $10 billion, but that was to reach some greater production level.
Clearly, if (say) $400m was considered enough to reach 150,000 bopd, then spending something like TWENTY TO TWENTY-FIVE TIMES AS MUCH on the full development plan would obviously be aiming at production levels way in excess of 150,000 bopd. I am hesitant to do a simple pro-rata, but even if we assumed "only" a 5-fold increase in output for a 20-25 fold cost increase, we'd be looking at 750,000 bopd!
Atrush block, from Shamaran..The KRG formally announced taking the BIR. Problem still showed this year though , two years after the event, the infamous KRG MNR Chief can do his share dealing, but can not get the paperwork sorted out..Are the PSC's legal under the Iraq Constitution or do the KRG MNR expect problems. How long dose a Company bail these clowns out who run the PSC's in Kurdistan
On March 12, 2013 the Contractor entities to the Atrush Block PSC were notified by the KRG that it had exercised its option to acquire a 25% Government Interest in accordance with the provisions of the Atrush Block PSC. Under the terms of the Atrush Block PSC, on exercise of its back‐in right to acquire the Government Interest, the KRG is required to pay its pro rata share of project development costs from the date of declaration of a commercial discovery. Negotiations are currently ongoing amongst the parties to the Contractors group and the KRG to finalize a commercial agreement with the KRG and amend the Atrush Block PSC to give effect to the Government Interest.
To the date of this AIF the process of amending the Atrush Block PSC and finalizing the commercial agreement has not been completed and the parties to the Contractors group are currently advancing cash for Atrush development costs which relate to the Government Interest. There is a risk that, in order to maintain the Atrush project schedule, the Company may be required to advance its pro rata share of the project development costs relating to the Government Interest, even in the absence of a commercial agreement.
When they were issued, the expectation was that the share price would be at a rather different level to now. Had it been known *then* that Clarke would savage Excalibur, the share price would sureiy have been higher than it was! My personal take on it (putting aside conspiracy theories) is that the Convertibles were taken on the expectation of a much higher price. And the Exit Awards, which were rushed through at the time of the trip(s) to China also pointed to that.
Sankeys isn't correct about the money owed on PSC Cost Recovery terms. First of all he falsely says that I said it was a lump payment! 40,000 bopd is 14.6 million barrels per annum, including MOL's slice, and the e.g. $750m would be recovered from that, going forward. He also omits to take account of the fact that ADDITIONAL capex for further development simply adds to that $750m!
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