Precisely, thats exactly what we SHOULD do yes. Sue them for theft/breach of contract, for the hundreds of millions owed, and refuse to produce another barrell until they cover at least some costs. Thats how it should and would work anywhere but Iraq. But as I say, Im 1000% convinced that from the off, the deal for us being handed SH, when we werea minnow company with only 1 rented drilling rig, was the following conditions -
1 - You will do as youre told, when youre told, and are there to serve us whilst we establish our nation, not raise shareholder value.
2 - You will do as youre told, when youre told, and are there to serve us whilst we establish our nation, not raise shareholder value.
3 - You will do as youre told, when youre told, and are there to serve us whilst we establish our nation, not raise shareholder value.
4 - You will do as youre told, when youre told, and are there to serve us whilst we establish our nation, not raise shareholder value.
5 - You will do as youre told, when youre told, and are there to serve us whilst we establish our nation, not raise shareholder value.
Stop drawing out oil until agreed payments are made. Enforce the BIR agreement which reverts 20% to us (can sell that off if we want). Sue for the debt. It's a KRG PROBLEM not ours. They can borrow the money from Uncle Sam. Costs to minimal and cash on delivery terms......
Its likely gone way past that point IMO mate. Getting to 40k a day should have in effect, made us cash neutral in terms of staying alive and keep bringing enough money in to tick over until speed picks up generally in Kurdistan, at which point we would be taken out anyway. However, reaching 40k a day has in fact been of ZERO benefit to us financially. Every barrel we produce puts us more and more into the doldrums in terms of capex. We are broke, yet continue to operate as the KRG's food bank. Are we still giving $1 a barrel to Syria too? Pft! The fact remains that the only thing worth discussing now, is payments, payments, and payments some more. Thats all. I dont want to reach 60k a day, I dont want any more drilling done, nor do I want anything spent on 'expanstion' in any form. Ill only see that as MORE wasted money as things stand. I personally think that we should STOP PRODUCTION completely, until money for the arrears starts to land, but then we dont do that as we do as we are told by Barzani and his self serving goons. Just imagine the KRG saying to Exxon, right, we want you to produce 100k barrels a day which we will be paid for, but we wont be paying you for now, in fact, we dont have a clue when we will be paying you. Exxon would laugh in their faces, which is precisely why they've not started production yet themselves, 3.5 years after landing in the region. And that is why GKP are in the position they are. They are whipping boys who do as they are told, and operate as a KRG slush fund, not a proper business.
That needs to change in the next month or two, otherwise Im seriously going to start doubting my invovement here, even if its at a 65% loss.
Anyone who wants this company sold now or in the short term is nuts. The only way to get the value from here is by paid production and owed money being handed over, creating a "desirable product" and not a fire sale. Lots would have it but their gamble is to wait for funding difficulties. If not here they'll go somewhere else.
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