The expiry dates tie in with AMEC's stated aim of commencing the detailed FEED design phase during Q4. Also worth noting AMEC and Arup announced their collaboration on 14 April 2014, and the job vacancy was published on 22 April.
It's unlikely they would commence complex front end engineering design work without funding (and subsequent FDP) being either in place, or very close to being approved IMO.
Having began the programme last year, they of all people should know the projected timelines.
12 June 2013 'XER and AMEC will shortly commence a front-end engineering and design (FEED) programme, during which the terms for a wider services agreement are expected to be formulated to include project and programme management and controls, further detailed engineering and design, fabrication management, sub-contractor management, hook-up and commissioning, operations and maintenance planning and system build, and Duty Holder services.'
14 April 2014 'During the initial concept assurance phase of the work, AMEC and Arup will be developing the ACE design to allow Xcite to take a final investment decision. The concept work will be executed from AMEC’s London office.
This latest agreement reinforces the MoU signed between AMEC and Xcite in 2013 to develop a wider services agreement for the Bentley field to cover key items of the field development scope and the ongoing field operations.'
Can someone please outline what they consider the current funding gap actually is, including the $135m debt? It would also be interesting to hear views regarding the amount you estimate Service Companies will fund, debt and any equity-based funding. Please note I am referring only to the post-FDP approval funding gap to cash-flow neutral, not anything pre-FDP approval. Thank you in advance.
Notice that the Wells Project Managers role has had it's expiry date pushed from the 31/07/14 to 31/08/14, coincidentally the vacancies for NDS and Completions Engineer for the NS (which were posted by SPD on a recruitment website on the same date as the WPM vacancy, 22nd April) have too had there expiry dates pushed from 31/07/14 to 31/08/14.
I had a grip of the finances four years ago in expectation XER were go for phase 1, and subsequently with the unused RBL.. The finances imo have not been the problem, it's been delays and expensive amendments re getting DECC approvals and a partner for what they've wanted to do.
Well, the Plan's in, should work, clock's ticking. We just have to await it's conclusion, and see if in the interim while they can still hope to retain much input or influence on the proceedings, partners or pursuers are flushed out..
Think dispensing with the RBL that was in hand and going for now with the Bonds to cover costs at least until the FDP is accepted by DECC pretty straightforward to understand as several posters have eloquently explained. Even if the Bond funds are used to clear off the West Face loan there's still cash left plus the unused Esousa £31m to cover costs for six months say until the FDP is in and approved. Thereafter the new funding arrangements accepted by DECC, plus hopefully input from a jv partner, plus alliance, plus cash left in the company, will kick in.
With the new grand Plan some distance down the road as yet to implimentation however, an old RBL if that is now the route XEL choose to go, as RC has mentioned other options, would have had to have been re-negotiated/scaled up, as the original though a valuable demonstration of lenders intent, was not fit for purpose for the new FDP. When XEL are able to determine the quantum of same, sure the same Banks, or others, as RC has continually exuded confidence on this, will step up at the right time for the right amount of funding assistance to move forward with the project. In the meantime, the company will save several million $$ by having cancelled what was in place and not now intended to be used.
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