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NoEasy. I am also not a fan of Moz or indeed anywhere else in Africa for that matter. We should focus on Nigeria, which is the best oil territory in Africa & where we are fortunate in being in a partnership with one of the main players in the country. That is our comparative advantage vis a vis other oil companies, we should play to that.
We dont yet know whether there will be an ongoing role for Shorecan & COPL's technical team in the development of OPL226 or whether Essar will essentially take that over. Whatever I doubt the COPL team will be entirely engrossed in OPL226 & should be able to work on the data for new opportunities resulting from any participation in the new round. I am sure IF there was a conflict between OPL226 & an unknown new opportunity, Arthur would order the focus to be on OPL226. Otherwise for a very limited investment we get the opportunity to analyse various fields & prepare the technical field exploitation plans (which many other will not be able to do) for those of interest. Arthur then uses his contacts in the industry to raise finance from a position of strength, ie Shorecan has access to the opportunity (s).
Focus is Nigeria, as COPL has built strong relationships over many years. I strongly support marginal fields bidding. COPL knows the local Nigerian market. Easy to deploy local experienced staff also creating a few jobs for the locals and further enhancing Company profile in the public domain.
It all raises the profile of COPL given its relationship built with Kola Karim over past years and contacts with Govt.
Art finally redeeming himself with activity here about to jump a few notches soon.
Rk,
Personally I can see the point others have made in that Art should concentrate on one thing at a time. I remember I made the same comment a couple of years ago when Art announced they had been awarded onshore Block PT5-B in Mozambique. Looking back I couldn't really argue, I had read the prospectus and Art has made clear at every opportunity that by investing in COPL I was investing in this,
'The Company’s management has many years of exploration experience and seeks to leverage its technical expertise in various oil and gas regions around the world. The Company therefore also continues actively to seek out and appraise other exploration and development prospects in sub-Saharan Africa, including in particular offshore Nigeria.'
Despite having OPL 226 the strategy was to continue seeking out other opportunities (note the last four words re possible involvement in the marginal fields). If I was buying into COPL I was buying into that strategy unless I was in for short term.
Additionally, and I know things haven't gone, up until now at least, as we planned for OPL 226, but the idea of having something to immediately move onto is a sound one for me. When the drill with ExxonMobil was a duster the company had OPL 226 to move onto and could have quickly made up lost ground but for whatever went on.
Ps. Not a fan of Mozambique's political situation and I wouldn't be surprised if that languishes for quite some time.
Jiving/No Easy/Jay
We've all been here long enough to know that Art is a dealmaker and his success at finding and producing oil in the North Sea was only cut short because the banks and bondholders foreclosed during the financial crisis.
This is such an opportunity to exploit the synergies inherent in the Shorecan partnership and for what is frankly 'chump change' , I will genuinely be surprised if Shoreline don't take part in this rare indiginous only bidding. Everything is now lining up and factor in the benefits of logistics and the current low cost of E&P services with the technical input of COPL it is the perfect storm
Bit of publicity.
https://t.co/A9Rs8dfHVu?amp=1
The two legs of the pre-qualification are technical ability and finance. The reason some of these marginal fields have remained undeveloped from their previous farm-out in 2002-3 by the government is because they went to indigenous entities that simply did not have one, both or either of those requisites. We would certainly pass on the technical side and another joint partner would assist on the finance side. Be interesting to see if names are put against fileds and whether that would throw an insight into who could approach who to make a joint bid.
Less we forget, all the calculations by the oilmen/oilwomen on here were based on the oil recoverable at OPL 226.
Anything extra, the potential SP figure goes higher.
RK. Totally agree. This is the whole value added of our relationship with Kola/Shoreline. Only 'indigenous' Nigerian oil companies can even register for the first license round in Nigeria for 13 years. 57 'marginal' license areas up for grabs, all of which have not been properly utilised in last XX years & so authorities have taken them back. Some of them have even been previously producing fields, they are not simple 'exploration' licenses. You either get involved now they are being offered, or what, you wait another 13 years?
This is a fantastic opportunity as 'indigenous' bidders can invite international companies in for 49%. So it not only opens up the field for COPL to join Shoreline but also to cut deals with other international oil companies - who do not have access as they dont have an indigenous partner.
The whole sudden Sunday deal of the second placing suggests to me Arthur had a sudden urgent need for funds, now this may be to do with OPL226, but it also happens to coincide with the new license process & the payment mechanism that begins next week. There is no saying that Shoreline will be registering for just one license, they may be registering for multiple to gain access to the data & participate in the rest of the process.
Rktech
Very interesting! Look at the demand! If Art has applied and we get somewhere Monday! Whoosh...
Great to know that COPL have OPL 226.
“If you are making a bid or auctioning any oil field, you need to get 10 people per field really going after the field. We have 57 fields and we have over 600 companies. So we can say that we are celebrating success so far.
“After the extension, we are moving according to schedule and now we are in the phase where we do pre-qualification for the bidders to apply. Everything is going perfectly.”
According to him, this is good news to Nigeria and Nigerians because it shows that the country is ready for business and that there are credible companies who are interested in investing in the country.
https://www.dpr.gov.ng/over-600-companies-bid-for-nigerias-57-marginal-oilfields-dpr/
Results of the bidding will be out on Sunday.
There's even a countdown clock.
https://marginal.dpr.gov.ng/Account/Login
I think it would be too tempting for Art not to get involved in this but we'll see soon enough.
That's the advantage of having an experienced oilman as CEO and not some failed accountant.