RE: Egypt26 Apr 2018 11:21
I doubt the POO wld be a main influential factor for the arbitration In essence, both parties need to resolve the matter in order that they know where they stand and to commence activties to acquire the oil and make �� .....even at today's prices!
POO will constantly change and so long as we are in profit and are indeed hedged against any black swan event that cld take POO down, most companies wld be fully aware the POO cannot be predicted for any long term.
NTOG need to maintain above ~$40 for the Permian Basin. Egypt, well the RNS shows the level to be achieved before becoming profitable.
In addition, $100 is pure speculation and surmisation. Im not denying this cld **possibly** be achieved but even if done so, there is nothing to say it will be held there long term. Aramco will obviously have an effect but we shd all recall only 2 yrs ago POO was in high 20s and with gepolitical events occurring all the time, POO is one of the most volatile instruments anyone can trade....
If $80 is achieved (wti) and slightly higher for Brent, and maintained longer term, this would be more than acceptable and realistic. I think $100 to be maintained or indeed achieved very long term is personally pushing it bar Aramco IPO.....cost of oil has detrimental effects on other areas and Im not sure how the economy wld cope globally (remains to be seen I guess).....:)
Even at today's Brent price, NTOG are losing out whilst the oil remains in the ground......I simply think neither party was making any progress and it was just a case of 'enough is enough......AIMHO
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