Member Info for BroadfordBay

The sheer and utter hypocrisy which is on show each and every day here , and at the other place, by those such as slurryscot and the stray cat no longer raises a wry smile but something deeper and more Jurassic.

Yes, let's clean up the boards and get those posting under multiple avatars banned.

Let's start with you.

promised from Saudi Aramco.

Saudi Aramco, the state energy firm of Saudi Arabia, plans to pay a base dividend of US$75 billion in 2020, it said in a corporate overview as it prepares for an initial public offering (IPO).

The energy giant plans to list about 5 per cent of the company as early as next year in the domestic market, while a second international listing could come later. Aramco is officially valued at $2 trillion, which would translate to a listing of $100 billion, dwarfing the largest public offering in history of Ali Baba at $25 billion.

The document said the company would have “a progressive growing dividend on sustainable basis at board discretion.”

“For the years 2020 to 2024, if annual dividends declared would have been less than $75 billion, dividends to non-Government shareholders are intended to be prioritised so that they receive their pro-rata share of a $75 billion equivalent dividend,” the company said in the document, adding that the remaining amount of dividend will be received by the government.

It also mentioned the company’s “progressive royalty scheme”, with a marginal rate set at 15 per cent up to $70 per barrel, 45 per cent between $70 and $100, and 80 per cent if the price rises higher.

"...will be stepping down as CFO and a Director of the Company during the second half of the year, and will leave the business by no later than 2 December 2019."

He might be paid until Dec but he will leave well before then...

Can we safely assume Sami will be leaving by the end of this week...

Who is currently looking after the financial affairs of the company - please don't tell me it's Nadz, the financial controller?!

Yes, the AB block was, at the end of the day, deemed to be uneconomic.

I believe, however, that at least one AB well is still producing for another operator (Russian). I haven't seen a PSC being issued so I presume this is a purely ad hoc agreement with MNR.

The contract relinquishment procedure in Kurdistan seems to offer not even a partial or nominal sum to the exiting party in such cases.

"At Voleon, we approach investment management through the prism of machine learning, in which flexible statistical models are applied to the problem of financial prediction. Rather than having humans look at individual events within the marketplace, machine learning employs statistical algorithms capable of detecting persistent effects across large swaths of data."

Keep taking the tablets...

That "cash mountain" is evaporating fast.
Very unwise considering the importance of SH-9 and the proposed sour gas re-injection scheme.
By end of Oct it should be down to approx. $228M.
As CCC says, only time will tell if the return of such cash sums was wise or whether it is just provoking the MNR.

hey,
close your eyes and your ears if that's what you prefer...

We shouldn't forget that there is also still a substantial sum claimed by KRG/MNR for SH output sold during the Extended Well Testing done on SH-1 following discovery.

Hello again, I trust you are well?

Electric Trikes probably now more likely!

very droll...

3rd Stage separators will be installed, i.e. need to be installed, at the GKP PFs.

The volumetric throughputs were explained, a long time ago by JG, as being in excess of the nameplate capacities.
Things have changed since then - the GOR from many wells and the fluids being returned.

Unlike you, I do know what I'm talking about...

The "hit and miss" comes from you, not from me.

everhopeful,

to be fair to the Canadian company who designed and fabricated the PFs, they can only work with the data they are given by the customer at the time.
Some of that data will be solid and some might just be "best guess at the moment".
Expected volumes / proportions of Gas, for example, is one which is always a bit iffy and the fabricator, usually with customer agreement, will always build-in some capacity for dealing with volumes / flows outwith the contracted parameters.
As the PF gets used and experience gained with the throughput, various valve & flow / instrumentation settings will need adjusting; likewise, some pipework will be found to be smaller than required and will need replacing.
Dealing with completely unexpected volumes / proportions of another fluid, such as water or drilling muds, will require more significant plantg changes (driling muds are dealt with as a matter of course during the actual drilling & flow testing but other units, which are not part of any subsequent PF, are used for this).

PF generally have no built-in capability to handle any significant volumes / proportions of water - yes they can be desgned and built to do so, but the GKP PFs were built to handle oil and associated gas, with almost no water separation plant incorporated.
GKP produced a To-Do List some time ago which listed many plant items that required improvement or debottlenecking; when I find it I'll post up some details.
To the best of my memory they planned to incoprporate a 3rd-Stage GOS to help deal with higher gas volumes and other fluids.

Arrogance is not in short supply here as you will have found.

All over Iraq, both N and S, these International Flaring Regulations are being whistled at.

If the company are being pressurized by the MNR to accelerate Gas collection, -treatment and -sales that might be a very good reason to hold a lot of capital.
Have a look at what the neighbours have stated with regard to their Gas intentions.

IMO the announcement of court proceedings against Hawrami (actually as Proxy for the Barzani Clan) needs to be understood in the context of Erbil vs Sulli, or if you prefer KDP ruling clique vs PUK ruling clique.

Although not strictly party vs party, Sulli people stick together, as do Erbil folks, and it shouldn’t be forgotten that the central government has better relations with many more in Sulli than in Erbil.

The dangers in such a public washing of dirty linen are so great that I expect an out-of-court agreement before it gets too far along.

The greatest danger is that of contagion – should yet another case go against the KRG/MNR (Hawrami is after all Barzani’s gatekeeper with respect to O&G), everyone and their grandmother may be tempted have a go; the DANA payment ruling was eye-watering, and the prospect of similar sums might tempt some companies to chance their arm.

I expect Barzani to fully appreciate the dangers here and sort it out. I don’t rule out Abdullah being hung out to dry but he knows too much to be let loose completely.

Perhaps some good might come out of it in respect of modifying the PSC structures?

IndridCold,

you seem rather obsessed with certain issues - including the Dilution which I claimed shareholders suffered during the financial reconstruction of the company.

Dilution was clearly stated by the company in the Restructuring Presentation made by GKP in July 2016 (Slide #3):

"Shareholders dilution and re-investment option"
"Shareholders ownership will be DILUTED to 5% following the debt equalization, not including Shareholders rights to subscribe in the Open Offer.
However, Shareholders will have the ability to re-invest in a well-capitalized Company by participating in the US$25 million Open offer for 10% ownership of GKP's equity at closing".

The fact that existing shareholders were invited to invest even more money in the company does not detract from the truth of the matter – that shareholders ownership was diluted.

If you have an issue with how the company formulate their statements, or if you doubt the honesty of their statement, take it up with them.

Please substantiate your allegation that I am dishonest.

Mikey,

I'll alter to "enthusiastic buying" if you like...

The sell-offs won't be visible as long as they fall within the compulsary announcement limits (5%, 10% etc), surerly?

The recently completed workovers will only return output close to the 40Mbopd baseline level.

We will have to wait for the results of the new drill before we can ascribe any great confidence to moving that number up.
Assuming it’s successful, and with no caveats being applied, the next upwards tick will be proving that the PF debottlenecking modifications can deal with the increased output (GOSP).
Then the next expected upwards ticks will be proving that the ESPs can indeed deliver what is hoped, and that the PFs can deal with the GOSP issues - not forgetting water.
The final upwards tick will be the success of the 2nd new well – if all goes well, expected about Summer 2020?

So, considering all of the above and taking into account the pressure being exerted by the MNR to “deal with the gas ASAP”, this implies enough financial uncertainty (confirmed IMO by the rejected FDP and implicit in any 2nd Amendment) to put a brake on any enthusiastic stake-building at the moment.

Brent languishing around the $60/bbl level for any extended period just highlights the potential dangers in making too many assumptions at the moment.

Sami said, Jon said, Todd said, John G said…

Many positive things have been said over the years by senior people at GKP only to turn to “dust in your mouth”.

Don’t be caught out by the rampers here who are all trading the pants off your emotions.

Apply some common sense.