Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Tsbs - No, the GG were to get 51% due to the PSA when it was FRCC. If FRWG is a 50/50 licence split the GG get 50% instead of 51%, but not under the PSA. In other words they get 50% ownership instead of 51% of the hydrocarbon production. Therefore, the GG would get half of the money if Block 12 is sold to the SM's under a 50/50 licence split. However, under the previous PSA split of 51/49, the GG would have to wait for years for the infrastructure and revenue under the PSA to get that amount. In other words the GG get the money sooner under a 50/50 licence split, rather than later under a 51/49 PSA split. The GG will still get a royalty for oil and gas transported through the international pipelines, plus a possible 5% royalty depending upon the 5% RA from FRCC. FRR will have only lost the 5% RA (due to having to transfer the licence because of SH/O) and the Eastern parts of the Shallow Fields and Basin Edge, assuming that B-2-0 is correct (due to the arbitration). Also, as there's decades of extraction, these lost fields may never be produced by the SM's due to the move towards renewable energy. However, if they were owned by the GG (Eastern SF + BE), they could still bring in revenue from interested smaller O+G companies.
Tsbs - Read it again, I've copied the relevant section below :-
Recent media and licensing suggest that FRWG has a 50/50 split of the licence, whereas when the licence was in FRCC it was 100% owned by FRCC, with the 51/49 split under the PSA after recovered sunk costs.
FRWG - 50/50 licence split. FRCC - 100% licence owned by FRR.
along the same lines as me MP but with better detail :)
I stated quite a while ago that I thought the removal of SH/O's debt and the return of the 5% RA were both key the SM's signing a deal. Recent media and licensing suggest that FRWG has a 50/50 split of the licence, whereas when the licence was in FRCC it was 100% owned by FRCC, with the 51/49 split under the PSA after recovered sunk costs. B-2-0 also suggests that the Eastern portion of the Basin Edge and Shallow Fields have been lost to the GG in the compromise, hence the new Frontera Resources Western Georgia holding the 50/50 licence. If this is all true then when the 5% RA returns to the GG their 50/50 split of the 95% effectively increases to 52.45% of the 100% ( they will get 50% of Block 12 and an additional 5% after the sunk costs are recovered). Therefore, the arbitration could be over whether the 5% RA results in a royalty after a deal with the SM's or it just returns to the 50/50 mix after the liquidation of FRCC, as FRR has already given up the Eastern part of the Shallow Fields and Basin Edge, resulting in the GG refusing to increase the licence length. If this is now what is happening, it is last chance saloon for the Russian leaning Dream Party, hence the propaganda and the retaliatory political threats from over the pond. The Dream Party also have possible demonstrations by the Georgian people starting early next month if the political reforms aren't implemented in time for the spring elections. I think it was B-2-0 who posted 'cool heads will see sense'.