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I stand correctd ..... should have clarifed by sayong that a few bb share will actully be cancelld to increase the value of share still held - busy day here, not focussed on this tiddler and it’s machinations.
Buy Backs will be kept offline ‘in treasury’ - awaiting a BONANZA of self awards to our management - when they eventually achieve that illusive milestone of 55kbbs/d.
A small proportion will be grudgingly distributed to shareholders - just to keep us satiated.
Remember - this is GKP and we should and cannot expect any actionswhich will be to the full benefit of shareholders.
Like taking candi off babies.
Hmmm - unfortunately, from long experience, I fear that the tinpots will find a devious way of under/late/reducing/instigating a punitive tax/withholding/imposing a special contribution ‘to aid the poor of Kurdistan’..... ways of securing the Camel’s share of the fantasy payments for their good selves. Nadim wil be consulted to direct his powerfull mind to the problem now that he has jabbed you all.
I think that if this team can ever eventually achieve that allusive and late, late, late 55kbbls/d - it adequately underlinesthat they are ill-equipped to expand our production any further - without external professional technical and commercial assistance.
When one looks at the riches heaped on Jon F and Sami for their mammoth contribution of skillfully decimating our SP as their greatest achievement - imagine the rewards which the current BoD will think they are due !
Surely Jaap could have brought in some competent old mates from his (reputedly) vast experience as highly paid consultants- to get us there years ago ?
What does he do all of his (part-time ?) days at GKP to better our lot one wonders ?
Hmmmm - maybe not so thick:
GKP paid him over a mil (plus bonuses) for zero contribution to our strategic direction and subsequent success (or anything else measurable), seduced the naive of S-on -Avon into putting him into UK govt, impressing the theatrical PM of the UK into appointing him as The Man to get the nation jabbed, setting up a company to capitalise on supplying bio equipment far and wide, getting the UK taxpayers to heat his horses, buying up and converting a tranch of dezrez in London to diversify some of his hard won millions, potentially capitalising on the Sinopec dealings to mark up a very cool 75m, collecting a highly probable knighthood from a greatfull nation for saving them from the ravages of C19.......
Not bad for a planck - and he’s only just started.
Wish GKP had one of his abilities, contacts, energy and intelect on its Bored of Derelicts ;)
‘ NZ for PM’ will be his next step upwards, I predict.
zedy - that is exactly the problem: the KRG rulling junta have raped the country for megabillions in personal gain and their world class corruption is recognised as a warning to any bonafid company (or company) - not to get involved. The legality of these tinpots in even selling the oil is legally questionable as Kurdistan is not seen as a sovereign state. The legality of any contracts entered into with them is therefore of tenuous validity (and that includes our good selves, unfortunatey). Their power lays only in the reputation and tenacity of the Peshmerga (remember the Iraqi army running away from them during their most recent faceoff). The Pesh therefore need to be handsomely and regularly rewarded for their continuing loyalty. A further layer of corruption.
What a mess we are underwriting then.
Armas - what height indeed - we are well and truely tarred with the corruption brush and any rational energy company wouldn’t be allowed to touch us with a bargepole - or their shareholders would have the responsible BoD removed forthwith for getting the reputation of their Company tarnished.
Right on Opu - unfortunately our wealthy BoD have proved that they haven’t a clue how to utilize it to benefit the company or the poor of our host nation.
Think Self, and what you can get off with around further self awards.
How about throwing in a cheeky bid for DNO ;) , or playing the camel races, or a solar farm, or a gas fired power station ???? ....... anything but following the TK or JH or SZ model.
Our Masters are certainly not blind - our burgeoning cash mountain will not go unnoticed - expect a wealth tax or a revision to the PSC as we all know deep-down that our profit belongs to the rulling tinpots.
Buybacks using our company’s cash resources - instead of reinvesting for growth or reducing risk by diversification - is symptomatic of a BoD who are not competent to steer our company.
Compound this with the suspicion that they will assign the bb shares to treasury - awaiting a suitable excuse to award them to themselves..... and (I repeat) that this is rather in their interests and not to those of the minority shareholders. Which brings in to question - who factually stands in the shadows of the major shareholders who allow our BoD to award repetitive failures with glittering prizes ?
Oh - Don’t hold breaths awaiting a wise reply from their PuTuP chap ...... he only puts pen to paper during office time.
The buybacks dodge explained: I guess as before - any pending buybacks will again go into ‘treasury’ - ie held, awaiting any plausible excuse to distribute another round of free shares among the BoD. As compensation - we can expect a further token dividend to pacify any objections to the next round of troughing - to which the BoD have convinced themselves that they are surely entiteled - due to their stellar performance in reaching that illusive production of 55kbbls/day (ahead of schedule, and under budget). As if !
Since this policy of using Company resources to stock up on sterile shares for future self-awarding rounds, rather than reinvesting in production or diversification into other areas of potential growth - the current BoD need to be seriously interrogated as to whom they consider they are working for - and to whose benefit.
GKP shares are regarded as so innelastic that cancelling even a significant block of any naively bought back - appears not to be to the benefit of the unfortunate shareholders holding those remaining in circulation ! Let’s wait and see if they dare.
Why complain if the monthly oil export payments go on tour for yet a further few weeks around the obscure accounts of the local ‘rullers’ ! Keeps them satiated - and we get our money (sans overdue interest payments) eventually ;)
The MNR are paid up front for selling our product, of course.
Imagine it being your turn of having several $mill in your taxfree obscure offshore account for several untraceable weeks ;)
How long can the scams and uncontested troughing continue around here ?
Rejoice ! No need for Doom nor Gloom here ........ only longterm investors are allowed to gripe - their original investments are down c. 90% - while current and even former management have reaped eyewatering salaries and bonuses for achieving nought.
What’s the problem ?
Wow! Are the LTIP and the SRP - a hereditory/annual part of a continuimg reward structure (when I had assumed that they were a one-off back in 2014 as reward for signing us over to the bond holders) ?
Will Sami and JF be eligible for further awards even after they have now left the company (without actually achieving anything, and opting NOT being retained ) ?
How and to whom will the next VCP be dished out - when no significant V has been yet to be C’d ! Why is our working capital laying un-utilised rather than being deployed to the benefit of the Compamy and it’s shareholders ?
Hmmm - How about another round of buybacks - then retain them in sterile ‘treasurey’ for future self-awards ?
Should staff awards ,over and above their superstar salaries, not be proportional to the actual increases in value, rather than being triggerred by a manipulated and very transient small jump in sp ?
Obvious granting us a peppercorn couple of dividends would be followed up by some serious troughing - with more to come, I fear.
Let’s watch and learn how this little company is exploited from within.
Seemingly China is offerring to rebuild K’stan infrastructure in exchange for oil.
Witnessed this strategy in Angola a few years back - they shipped in work gangs of homegrown chinese criminals to do the work (which was quite a clever move).
What’s of more direct and impending concern for us as investors in this region is that - ? why would any of the Chinese oil companies even dream in bidding or buying out GKP/DNO/Genel etc (and getting involved with the massive corruption/late/missed/begrudged payments etc - which we live under) when their Govt. can now source the oil we produce and donate - without investing a buck ?
Concur with that W72 - JH apparently has the cahunas which his millionaire predecessor lacked.
He now needs to play hardball with the (questionably legal) billionaire tribals who seem to consider that they occupy hereditary positions as rulers and owners of Kurdistan.
Stop talking to them and conduct business with the ostensibly more accountable officials within the ICG.
Please don’t take things too personally Put Up, you see some of we longtermers on here have seen ‘contributers’ come and go, and can spot put ups a mile away.
The Financial World is basically that of simple arithmetic - peppered with a few buzzwords to impress, seduce and convince the layman as to the superior wisdom of the contributor with a mission.
Not an exact science then - and no evidence of solid analysis to back up the superiority of the utterings.
Good luck in your next assignment.