RE: Renegotiation with BP24 Sep 2020 09:45
Rather than seeking a reduced price from BP, would PMO not be better off restructuring the deal with no upfront payments in return for taking a larger share of the decommissioning costs. Even better PMO could take on all of the decommissioning costs($600M) in return for a share of the 2019/2020 revenue as originally agreed($300M).
Overall cost to PMO, approx. $300M, not that different to what has been agreed, but PMO would get $100 - 300M now to sort out debt, higher production to ensure debt repayment over the next 4 years and have enough time to recover from COVID-19 and sell Zama, all in time to meet decommissioning costs.