Slightly disagree, the Wood review and comment also applies I think to small dog/big dog scenario to help protect the smaller companies against the big guys attempting to squeeze them out, or just having a small production that can go through in situ pipe etc. In the case of XEL -v- say Statoil even more important because the joint resource is large, and considerably more cost effective if developed jointly. Sure both can do each on the scale it is, (we hope) but the savings by agreeing to have shared facilities, and probably also enhanced production, are huge.
Can't help but feel that the sudden leap from Phase 1A to Phase 1 would not have been taken without some form of informal verbal indication of interest from the potential partner -even if no figures were specified. The 'door remains open' remark suggests to me that some kind of proposal has been made but the terms are not good enough. It could be the $/barrel offer or (more likely) too high a % share being sought by the potential partner. It could also be to do with timing. XEL are raring to go but others have not had time to work through their options -especially if they had to re-work previous plans. I do know that as presented by the RNS, we are in a risky position. Something needs to be done to re-assure investors. There's faith and there's blind faith. How long can the SP take these losses? Certainly not through to Q3/Q4. The SP will probably bounce at some point. I had hoped it would have been today, but today's losses have been more than double those of Friday.
mouseman, personally I don't think the Wood Review and it's recommendations apply to a field our size, I think it's more to target the smaller fields to work together:
"But in the 1990s and 2000s that has given way to a much larger number of mostly smaller fields and a plethora of independent operators.
Some are behaving in ways that are detrimental to maximising oil and gas recovery, according to the review, and must be given new incentives to force them to cooperate for the benefit of the industry and the country as a whole."
We have a large field which is quite adequate as a standalone imo.
Unfortunately XEL have dickered around with production plan options, and with other problems such as with the flow test, RN rig delay, the EWT and results from same, a start date for production is receding into the distance once more. XEL may after all this time conceivably be back to the old 1a plan, perhaps not a bad idea at least if there is a rig around, and RBL funding increased to get things moving, finally. With 2-3 wells already in place, produce and drill, one might dream things could kick quite quickly into gear. Or Statoil could yet in the weeks ahead positively jump off the fence and we might be back to plan B again..
I'm no expert but I cannot think the Wood report/future Govt Policy would say we must 'hub' at any cost e.g. a $1/b buy out; though its to be taken away from huggers who want $100: surely 'hub at a realistic price for the oil present' is the intent but perhaps this is a practical implication overlooked [ or I havnt seen the finer print?]. I also recall, as an even newer BB member asking more than a year ago why we didn't continue to fill other [BP] tankers whilst waiting for all the other stuff that's been going on for ages? Was the rig and tanker anchors just too expensive to keep there - presumably changing to a less 'cutting edge' crew once it was 'just' pumping out. Negotiating from a position of strength and cash flowing - or am I just a prat who doesn't understand the licencing complexities.
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