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I understand that a general principle of business is to avoid or at least be very cautious about pouring your money into a business you may not ever see again. I'm not saying FRR will fail but if matters are uncertain then it could be a difficult for Zaza to recover his money if he loans it to FRR. From his perspective he is not out to risk going from a millionaire to a pauper or much poorer person. It is totally wrong that the workers have not been paid of that is true as it is now looking. I'm assuming if that is the case then FRR hasn't got any room to move on it and are stuck until some money is forthcoming from oil or arbitration. I think Zaza should explain to the workers when and how they can reach payment realistically.
Reminder:
Listen from 1 mins " Foreign direct investment into the energy sector"
https://youtu.be/K8lnjpZV_As
The other key corporate guy was Bob Scher Head of International affairs BP
Interesting background
https://www.fpri.org/contributor/robert-scher/
I would think that BP, EXXON or whoever would want and need the PSA extended many years past 2027 . A year ago Zaza suggested that a deal was very very close. I don’t believe they are still looking at all and are a big part of any PSA discussions and actually demanding a minimum amount of years extension . The PSA extension is the final piece of the puzzle.
Sounds to me like the loan that was talked about has a few demands on it and one is extension of the PSA.
This makes sense.
However it seems to also indicate that the idea of buyout or JV is not imminent. Possibly BP have looked and walked, or still looking.
Are BHGE producing for us, with a deal to share profits, or does the workers going mean we are not having any revenue?
I suggest this was the treat Zaza used to workers, if they do not continue they may never get paid but if they work this will be resolved. Its a bit like the chicken and the egg scenario. Both sides are pretty much stuck.
If Zaza is so confident the deal with PSA can be reached and therefore the loan, then i would expect him to use some of his own cash to at least make a payment to those owed many months money.
Its not right that Zaza and Steve have vast amounts of money while those who help make his money are left to live in hardship and poverty.
The company may not be in a position to pay right now, but if everything does look like coming to a sucessfull outcome, those two should give at least a bridging loan to ease the suffering and to keep the oil flowing.
What a mess we find ourselves in.
I also think this plays right into the hands of the liquidators , as it demonstrates that we are a company with no revenue to keep the lights on.
The threatening comments were not the way to do this, empty promises and missed timelines are also not the way forward. Honesty about situation and the PSA along with about loan, backed up with a months wages each partly funded by the two in charge. That would show commitment and sincerity to the workers.