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Tib
Thanks for that insight - very much appreciated .
XX
Thanks for link to SP interview Bynari, loads of nuggets in there.
Sadly, it appears that BPC cant just produce from the first well straight away using the drill ship, different platform from an FPSO that SP mentions
For example, West Saturn spec has no crude storage capability and nor will the similar Stena drill ship we get:
https://www.seadrill.com/application/files/4515/7288/7954/west-saturn.pdf
So would need to make the well good that allows an FPSO to hook onto it in due course.
What i have read is that they are made to order or leased - massive costs, so way beyond BPC ability - but in this market, could it be leased based on reserves established and paid by production?, then very good Obadias points made do kick in, albeit with different lease costs.
Interesting article on FPSO
https://www.offshore-energy.biz/rystad-expects-no-new-fpso-contracts-in-2020-but-sees-quick-rebound-next-year/
Tiburn
"I didn't know that was an option to sell the oil as I thought they would plug the well following TD and testing"
Your Answer: Simon Potter CEO
https://tinyl.com/y4wfyxaz
Obadhia,
yep your right, all about hitting the oil, I didn't know that was an option ti sell the oil as i thought they would plug the well following TD and testing, in either case...but if they can get production off the back of the ship upto 20,000 boepd that's a very interesting interim proposition for BPC with many rigs laid up and contracts being bought at day rate cost.
I was researching another share and found this article, some interesting points made on rig market dynamics
https://www.scmdaleel.com/category/offshore-jack-up-rigs/213
It would suit Stenas purpose to make money in this way if they have the capacity, and also BPC at that rate of return
after paying off Stena, tax and opex they could book $15m per month once oil flows, great position to be in if this possible whilst they wait for a Major or consortia to form.
Tiburn, re your consortia post and FPSO costing in the region of $800m ...
It's all a question obviously of a) successful drill and b) the volume bopd lifted but if, as Potter states oil is to be sold 'off the back of the boat' then Stena's day rate, approx $190K, could be met by the profit on 5500 bopd (WTI $40 less 12.5%)
As I say it's all relevant to daily production but, to pluck a figure for argument's sake, if it's 20Kbopd (reasonable?) it would still add up to a very profitable operation prior to any consortia formation.
It would be interesting to hear from others what their daily production (settled) expectations are from a P50 success.