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Just because you signed a bad deal doesn't mean you have the right to change the terms - you can't just change from a fixed to floating mortgage because the interest rate gets cut.
Like i said, either both parties agree to change the terms, or a court rules on it - sure, governments can repudiate terms set by a previous regime if they want to try it, but that will end up in litigation and spook the entire O&G industry, which Guyana is about to build its economy around for the next 20+ years.
Politicians like to talk a good game to get elected. Nothing will change with the agreements that are currently in place.
Sorry "not" should read "nor" in the below!
Let's hope so Phoebus!
Fully agree it seems unlikely they would want to aggravate Exxon toooo much (not the other majors).
GLA!
Now that they're in power you may find that the new government falls silent on its opposition towards to the oil contracts. It's surprising what people promise to get elected and then forget about when in office. The new government sounds eager for the oil sector to get back to business so even if there are changes expect them to be swift and then business as usual.
No, of course no new developing country government could do that...particularly since they didn't sign the contract and believe there were some underhand dealings in allocating the blocks...and they think the people of Guyana got a very bad deal ;-)
We'll see soon enough hopefully.
Interestingly, a while back there was speculation that the new president had interests in the blocks too:
https://guyanachronicle.com/2019/06/14/jagdeo-ali-link-to-giveaway-oil-blocks/
Seems the PPP certainly don't (or at least didn't) think a contract is a contract:
https://guyaneseonline.net/2019/09/13/contracts-approved-by-caretaker-govt-will-be-deemed-invalid-ppps-jagdeo/#more-78777
Oil is the most important issue in Guyanese politics, Exxon is the key player in Guyana's oil industry, Exxon is the largest US oil company and Guyana is Exxon's most important project. The political impasse has resolved istelf very quickly following the imposition of sanctions by the US and the US would not have assisted in helping the opposition get into office if it were to jeopardize Exxon's interests in Guyana. The fact that the deadlock has finally been resolved in this manner suggest to me that any licence changes have already been agreed upon behind the scenes between all parties concerned (Guyana, licence holders, US government) and in a way which is not unfavorable to Exxon's interests. Most likely any change if any will consist of a small free carry or revenue interest for Guyana on the licences signed after the Stabroek licence, that is to say the Kaieteur and Canje blocks.
you can't just renegotiate a contract because you don't like what you signed... a contract is a contract unless both parties agree to change the terms, or a court nulls it.
I wouldn't be so sure...
The PPP (previous opposition party) has now won the election and the new president was sworn in yesterday.
This is what they had to say about the licenses (specifically excepting Stabroek) in February:
"The People’s Progressive Party (PPP) intends to renegotiate, with the exception of the Stabroek Block Production Sharing Agreement (PSA), all oil contracts."
Albeit that is reported by what be a somewhat biased local press (who also state they want Stabroek renegotiated):
https://www.kaieteurnewsonline.com/2020/02/14/ppp-govt-would-renegotiate-deals-for-kaieteur-canje-other-blocks-opposition-leader/
ah ok gotcha - it's literally gonna be at Liza for a few days only then. thanks!
the stena carron will conclude its liza operations on the 7/8/20 and will move to tanager.
Weird Hess said that Stena Carron is moving to Tanager after finishing up at Yellowtail-2, but the Marad notice to mariners says it's heading to a Liza development well... Would be good to get some indication of when we can expect Tanager to spud.
Just email the company directly.
You have the source?
It was confirmed by the company about 2 weeks ago.
That was pre-covid.
I hope for an update soon, so far its delayed.
The yellowtail results sure are very encouraging for canje but bulletwood will target the 2 upper layers in the upper cratecous which will be targeted on tanager as well.
Exxon submitted for multiple follow up drills on kaieteur, so well have to wait and see what is the priority.
WTE has stated that a number of wells are anticipated to be drilled across WTE's Exxon operated Guyana licences in the next 6-12 months and that will almost certainly include Canje.
Donmac,
So far no update about canje, contractually they have around two years for first well.
and an extremely quiet BB with no twitter ramping haha
And a fully invested BoD with excellent track records, who aren't taking a penny in salaries. There's a lot to like.
Canje to be drilled b4 sept also.
Exactly. 72% COS and directly on trend and adjacent to 20 odd mega discoveries by EXXON. Don't think I've ever seen an exploration well opener for a tiddler with such a nailed on likelihood of success. Don't forget that Tanager-1 is only the first of a number of wells anticipated to be drilled across WTE's Exxon operated Guyana licences in the next 6-12 months. Investors need to smell the coffee and get in ASAP as this really looks like it could go supernova.
just took half the morning to buy 20k shares... almost no liquidity out there
@Phoebus you're not the only one who thinks Tanager is a nailed on success... NSAI gave it a CoS of 72%...
rns must be incoming
man i was just reading the hess report just as you posted.
Great minds think alike.
Only thing i got wrong was i guessed noble tom madden