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I reckon that there might be a possibility that the 1 percent is being rapidly developed with oil well & possibly the gas being tapped into also. I don't say this through wishful thinking but because it could make sense with the present dispute. If the field is developed on far enough it could really screw up the value and potential of the returned 99 percent wasteland. Companies could look at the wasteland the GG were tendering and say 'it's not worth the risk off investment, we would be investing vast sums off money to find out where FFR's oil & gas are to then spend a lot more money tracking a long way over to it to an existing area that already being tapped by may oil wells, etc'. I think a lot of companies would walk at the prospect of trying to tap into another companies oil & gas that is already a developed field. Any other would not be wanting to pay much for the tender or sign up to too favourable terms for the GG. Hence why Zaza wants to hold onto the wasteland for as long as the Arbitration agreement allows. If it ends up that few companies in competition will look at it then it makes FRR all the more lucrative.
Hi MadP - if my theory (well its not really my theory, I am just seeing how the most recent evidence might support this) is right, I wonder what all the noise is about. If both sides are happy (fiscal penalties aside) then why keep fighting in public. If it is about the money there are various amounts being bandied about. From USD$200K (FRR) to USD6m plus costs (GOGC). I think the earlier claim from GOGC that ranged from USD70M to USD100m+ has gone away? I put some theories relating to the noise earlier and hoped FRR have an ironclad deal if we really have retained the 1%. Maybe poking the bear and trying to give it a cuddle at the same time is a workable strategy.
Looed - That shouldn't be too much of a problem for Zaza. As long as the GOGC extend the PSA from 2027 to 2077 perhaps and allow a deal with the SM's, I'm sure Zaza won't continue to politicise the legal dispute.
Same title but a slimline variation on the article R8pilot shared. Both articles are a rehash of the latest GOGC statement. I am going to take it as supporting my earlier theory.
"Georgian oil and gas companies call on Frontera not to politicise legal dispute"
https://en.allmedia.news/sazogadoeba/52997-georgian-oil-and-gas-companies-call-on-frontera-not-to-politicise-legal-dispute/?doing_wp_cron=1590883735.6865758895874023437500
Same spiel of mentioning reimbursement of mineral tax and court expenses.
“The Arbitral Tribunal supported legal position of the Georgian side and satisfied a vast majority of the claims made by GOGC and SAOG. Particularly, the Arbitral Tribunal ruled that FRGC committed material breach of the PSC, which is a ground for terminating the contract. As a result, FRGC must reimburse GOGC with approximately 6 million USD for mineral resources usage tax and for legal expenses resulting from the arbitration proceedings.“
Toning down the rhetoric
"As a consequence of the fact that Frontera refuses to disclose the arbitral award so far, and since Georgian side refrains from unilateral action, we will limit ourselves with just brief information around the main postulates of the award in order to protect the state’s investment image and to satisfy the interested parties:“
http://georgiatoday.ge/news/21340/Georgian-Companies-Call-on-Frontera-not-to-Politicize-Legal-Dispute