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"When you have a fiscal challenge, the bigger you are, the stronger you are," Ithaca's Myerson said, adding the company was looking to expand overseas to Norway, Denmark and elsewhere.
I realise Ithaca is focused on the North Sea, but with the spectra of a Labour Gov coming into power almost nailed on, which would mean the EPL is raised and the re-investment tax break will be cut, why would anyone look to increase investment in the North Sea? Could that "Elsewhere" be the Falklands, after all Ithaca are backed by Delek and with dwindling returns why do more in the North Sea than they have to! There will come a point with so many projects pushed back; bigger companies leaving the NS, that it will just spiral down and will never come back to where it once was.
It would make a lot of sense pre FID and give some clout to the project, having ran Oil and Gas operator onboard. It would no doubt help with funding too, undecided players may come into line with Ithaca coming into the fold. Just a thought!
LTT
Daily mail has same headlines as the telegraph let’s see what happens tomorrow
TCM, from what you’ve said we aren’t that different in our view on this….
“Rkh do not know when the OM decision will be and they will need that £15mln so to me FIG will be holding both Rkh & the project back if they don't sign.
I just don't see how FIG are doing Rkh a favour on this as some here do.
Rkh have clearly stated they expect the requisite approvals No Later than 30th June 2024 so isn't that what we shareholders should also expect ?”
Agreed, agreed, agreed.
I don’t know the real position on this for sure, FIG have got themselves some leverage and appear to want to hold on to it for now. But this cash will be needed to allow Sealion to proceed and ultimately the tax is not owed as the proceeds that the tax relate to never materialised. So at some point they will have to relent and allow the development to proceed.
CO, I appreciate your comments and respect your opinion but have to disagree that "FIG are doing this to reign Rockhopper in and keep them focused on SL" as Rkh are already 100% focused on SL and totally incapable of focusing on anything else, SL alone will be more than a challenge for rkh , so I don't buy this argument.
Rkh do not know when the OM decision will be and they will need that £15mln so to me FIG will be holding both Rkh & the project back if they don't sign.
I just don't see how FIG are doing Rkh a favour on this as some here do.
Rkh have clearly stated they expect the requisite approvals No Later than 30th June 2024 so isn't that what we shareholders should also expect ?
TCM, in my opinion the tax deed settlement that AC has alluded to will eventually be dropped. After all there is no justification for taxing money that has never materialised. However the current situation suits FIG as they are able to reign in Rockhopper and keep them focused on developing Sealion. Some have said that Rockhopper management are also happy with the situation. I’m not so sure about this myself and I’d be interested to know what Navitas make of it all.
We have an approximate timeline for Sealion production and working backwards from that date there are a number of announcements that need to be made for pieces of the jigsaw to fall into place.
By the end of 2024 we should all have a clear picture of where we stand.
The only thing that will happen once the deadline is reached, is that the parties are no longer bound to the agreement. They are still free to continue under the same terms.
FIG will not sign by June. That "deadline" will extend.
Patience
I was being sarcastic about Navitas .....
Is this the tax deed settlement on the free carry that they never received that expired in 2021 with the new deal that scrapped the free carry ?
If so, it's the middle of 2024 now and still nothing has been resolved on the matter and some posters actually believe FIG are working with rkh ?
Is this the tax deed settlement on the free carry that they never had that expired in 2021 with the new deal that scrapped the free carry ?
If so, it's the middle of 2024 now and still nothing has been resolved and some posters !
TCM
The situation has been explained here before. FIG holds security over ALL of Rockhopper's assets as a result of a tax deed settlement (which may, or may not now apply) . The OM funder wants a security over the OM award, which is a Rockhopper asset, before paying up. This conflict is a legal matter. It will be concluded with a ranking agreement between FIG and the OM funder, as is the case with any multiple security arrangement.
It has nothing to do with Navitas.
I don't know what to make of it CO as I never knew FIG had control of all existing & future assets rkh have or may come into, like OM.
That's why I threw it out to the board- to see if any of the longer term holders could shed any light on it .
I could understand FIG having control over Rkh's share of SL but to have control over all existing and any future rkh assets, like OM, seems a bit ridiculous to me but that's seemingly, where we are !
If I was FIG , I would certainly not voluntarily give up this total & complete control over Rkh, why would you ?
Does this mean they now also have full control over all Navitas assets too, including Shenandoah ?
It all seems a bit bizarre & weird to me to be honest and I've never heard anything like it in my 25 years investing.
* Harland and Wolff* and their issues are about State Aid questions on debt re-financing the Scyllies ferry job. I don't see any connection.
Navitas made it plain at a local meeting in Stanley that they were using the Temporary Dock Facility (Noble Frontier barge) that Noble energy left behind after the Eirik Raude drilling programme. They are refurbishing it now to make it ready as part of a shore base logistics for the Sea Lion development.
H&L issues and the FIPASS replacement are unconnected to the project.
I don’t think they are looking at the deadline when it comes to making this decision.
So the answer for me is that it depends on what move Navitas make next. You’re the self proclaimed Chess Master, seems to me that this whole saga with Sealion is more complicated than 3 dimensional chess.
What's the consensus on The FIG signing OM before the June deadline ?
6 weeks left....
Isn’t that why one has a good project manager?
A PM’s job isn’t to attend photo ops and drink fine wines, but to lead a 1st class team to create a 1st class plan, which that team implements.
The PM identifies and anticipates any issues taking appropriate action to address such issues before they become a problem.
Where there are problems the PM takes action to minimise any impact.
Ian Ramsay appears perfectly capable of managing this project without any help from us.
Hi Whackford,
I don’t believe it’s a big issue, of course ideally the new dock would make things easier but Sea Lion has been talked about happening for almost a decade with PMO, then Harbour and now Navitas talking about FID coming. At no time that I’m aware of at there been a condition of waiting for the new dock to be up and running. They coped perfectly well with exploration and appraisal drilling utilising the existing infrastructure so nothing has changed. Even if news of H&W in a tricky situation is all hot air and bluster, they are the preferred bidder, and it could take a couple of years going by FIG pace of doing things before they event start the construction, by which time Sea Lion will be pumping oil if Navitas can keep to their end of 2026 or first half of 2027 for first oil.
I have to agree with DEM about it being “Oh so quiet!” however I would have leaned towards Bjoks version! 😉
LTT
From today's Telegraph: Ferry row threatens to scupper £200m Titanic shipyard rescue
Isles of Scilly ferry state aid fears leave Harland & Wolff’s future in doubt.
H&W are preferred bidder for FIPASS renewal (for supporting floating barges) in Stanley. Will any delay in FIPASS impact the Navitas program?
This time next decade.
Patience
This is link ... sorry.
https://www.telegraph.co.uk/news/2024/05/17/im-bored-of-educating-ignorant-argentinians-about-falkands/
Another story about the Falklands in DT this afternoon ... I'm amazed at some of the ignorance shown in the comments column beneath it.
Mine is now 19p, I could add more and bring it down, but I am confident sp will end up north of this and much higher hopefully given all the potential OM, FID etc.
GLA
@Blue Defender, I’m sure that story is similar to many of us here. I bought and sold but then bought more around the £3.50 mark and bought a few more on the way down “it surely can’t go below this…oh!!…”.
Like you, I’ve bought a lot more down at these sort of prices so the break even price a lot lower now. The years spent watching this has been grinding…it has often been said before “but this time next year”…maybe..?