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Hmm good question Bullseye, I'm not sure.
Tambo - I'm certainly not on the extreme naive end of the spectrum, but being so would be just as detached from reality as you, seemingly, being at the overly cynical and negative end of the spectrum.
There will be (fair) conditions and disallowable expenditure, but if the field produces in line with expectations they should recover the vast majority of the $2bn. The PSC is a legally binding contract and I've seen them work as agreed in various African countries.
Won't do themselves any favours in atttracting future foreign investment if the terms they sign up to are not upheld / aren't worth the paper they're written on.
Worth reading...
https://www.petroleum.go.ke/production-sharing-contract
Yes, it's common practice in Africa in order to attract exploration - if you strike oil you recover the initial exploration and development costs.
They won't get it as a lump sum though - it will be recouped via the state oil company's (National Oil Corp) share of production per the Production Sharing Contract. So Tullow will get all or part of NOC's share of production until the $2bn is recouped.
Most of the $2bn investment costs are recoverable from the Kenyan Govt, but only following successful commencement of production
https://nation.africa/kenya/news/tullow-overshoots-cost-recovery-claim-by-over-sh15bn-309772
Yeah the whole "you were ramping at 60p, 50p, 30p..." and "who has the most accurate posting history" etc is getting extremely boring. Appears to be a group of trainees (or one trainee) from Pictet who have the futile task of trying to influence the share price on a message board haha. Quieter this week I note though haha. Move on or come up with some new material. ZZZZZZZZZZ
Meaningless and pointless - exactly what CA will think of your report based on nothing more than conjecture and speculative mind-reading on what was meant!
Hahaha, you're like the kid at school who gets a kick from telling the teacher someone is chewing in class, only worse as at least that was against a rule of sorts. Sad life like.