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Hi Obadhia,
Not that my view is definitive in any way, but it is very much distinct parties in my interpretation. As far as I’m aware there was no reason to name the preferred supplier of LNG as part of the proposal, it’s only important it’s non-fracked, whereas I think it became impossible to conceal the identity of Hoegh.
PT, no worries - you’re right to highlight the significance of the relationship between Massy and Wood, but for me it would change the dynamic of the CO2 supply arrangement if Wood had any sort of say in it. Not trying to be picky, simply for clarity.
Hi PT, sorry to be contrary but I don’t think that’s the case and could be quite misleading… what are you basing the statement on? Unless I’m much mistaken, Wood have nothing to do with Massy Holdings Ltd, Massy Gas Products etc, but do of course have an equal stake in the JV Massy Wood. Happy to be corrected…
This is a query for the serial investors on the BB (I’ve stated before I am not not one in case anyone accuses me of being a persona associated with any deramping crew…).
I appreciate it will be difficult to predict but what sort of market maker skullduggery is typical around a drill? Just prior to a ‘strike’ RNS, is it typical to experience volatility designed to take out stop losses etc? What are people expecting to see here? It doesn’t make any odds to me as I haven’t got any stop loss set and don’t intend to sell based on any result in Morocco. I’m purely interested in what people expect to see.
Have to say MEM it was the standout for me too and glad you raised it as a distinct point.
I’ve been involved with a number of projects where SLB were the providers of the ‘early production facilities’ (EPF for short). This can range from rental equipment for pilot production up to plant resembling full field development. The ‘early’ can be a bit deceptive as sometimes EPF have a more significant design life. In the EPF space SLB are probably the market leaders.
I would contest it makes things ‘nailed on certainty’ as there is typically no financial obligation for either party in a failure case. However, that both parties would come to the table to finalise an MSA is an extremely positive sign...
Sbroms. Taking your question at face value and answering it as such...
Chariot’s Anchois development proposal involves 2 subsea wells, a subsea manifold, 40KM subsea flow line to an onshore central processing facility before another 40Km pipeline to market (Maghreb pipeline).
Compare that to Guercif, current drill is 9km from the Maghreb pipeline. Onshore developments can be cheaply started as pilots with rental production equipment and scaled up according to new discoveries/increased funding or reinvestment of profits.
Chariot’s project is a good one with a lot of gas in place, but with exponentially higher capex commitments and technical specialism than would be required to develop the successful well at Guercif. Reflecting the risk increased risk in offshore, it is harder to find willing money.
PRD might need some funding to kick on but in the expected case there would be backers queuing around the block and options like reserve based lending open up to secure attractive funding terms without dilution.
Good stuff Muckle. Never known the Scottish business well but had some good times visiting Newfoundland working with the Wood office there. The tie up with Massy in T&T probably explains Massy’s ability to provide the engineering services for PRD.
Wood McKenzie are an energy consultancy firm. Wood PLC are a multidisciplinary engineering, procurement and construction company headquartered in Aberdeen as far as I am aware, grown under the steerage of one Britain’s great entrepreneurs Sir Ian Wood. Massy Wood is a JV between Massy Holdings and Wood T&T.
In a recent Malcy interview, PG said the following:
“Completion of the well will establish Predator as an operator in Morocco“
According to accepted definitions, well completion is “a single operation involving the installation of production casing and equipment in order to bring the well into production from one or more zones”.
Notice the words chosen. It doesn’t say “an exploration success and well completion”, nor does it say “completion of the well MIGHT establish Predator as an operator in Morocco”. PG does not mess with words, and he said this well WILL establish Prd as an operator. You can’t be an operator without hydrocarbons.
Paul obviously sees this drill as an appraisal well as GRH mentioned before. It seems to me the question is not ‘if’ just ‘how big’?
Nicodemus - politely I suggest you read the RNS again which specifically mentions import capacity in relation to Morocco and draws comparison with the scoping for import capacity of Ireland. No assumption has been corrected. FSRU’s are only used to import gas - they don’t have a liquefaction capacity.
It’s brilliant for all SH that PG continues to drive the value creation agenda as if he were a thirty something chap. That’s not meant to be ageist, what I mean by that point is how many CEO’s in his shoes, given his extreme confidence in the asset, would rely on Geurcif success and sell up for a nice sum on the success case for a well earned retirement? We have a CEO acting exactly as he should because it is in his very nature, but that in my opinion is rare and makes all LTH very fortunate.
There’s got to be something in it - Golar’s Hilli Episeyo FLNG vessel gives New Fortress access to non-fracked LNG in Cameroon, they have all the LNG carriers needed to transport it, then they own FSRU which can be deployed to regas it. There is the whole value chain right there, so why would they plonk a land based LNG terminal in Ireland if an FSRU were preferred and they can execute it in house? In previous RNS, which pre-dated the Golar acquisition, there was reference to agreements with a major FSRU owner, and a third party (I can’t remember the wording) - is the third party NFE? I’m seeing a blurry jigsaw and I can’t make out all the pieces...
Very happy birthday to you GRH.
All good points as always. I find it intriguing that New Fortress now own Golar, with the associated fleet of 13 FSRU/FSU. Could there be some sort of tie up/JV to be had between PRD’s proposal and New Fortress?
Hello Cmcc, like PT I agree it is one of the major ace cards of the PRD proposal. They’d be taking an existing vessel (carbon footprint in the construction of it is already sunk), utilising it for useful life, and it can then be removed without a trace and potentially redeployed elsewhere by it’s owners. It’s also feeding existing gas infrastructure rather than new connections. When you compare that to all the civils work and storage tanks etc onshore with New Fortress, there is only one winner from a green perspective. The whole concept is a complete master stroke.
Hello Nicodemus,
From what I know, Enhanced gas recovery is not as mature as EOR, nor anywhere near as certain in its effectiveness. It’s quite a different mechanism of enhancement. Bit of reading here for you amongst other things you can find with a quick search. https://core.ac.uk/download/pdf/82623951.pdf
One other thing to consider with regard to any potential for PRD to offer EGR in T&T is that almost all the significant gas production is offshore. Therefore if a company went down an EGR route they would separate the CO2 from the feed gas with an amine package or similar on the platform topside, then reinject it. Wouldn’t be relying on Massey (or any other onshore based source).
BHP bought Ruby platform online this month I think. Should be a decent contribution to overall gas feedstock, but unsure on what their take-off agreements are...
Indeed Nicodemus - would be quite staggering if PRD could get Kinsale flowing gas again with CO2 Injection. I think the ‘why not Ireland?’ was related to CCS rather that EOR (EGR would be the case for Ireland). I don’t think there is a chance of returning commercial production to Kinsale via any means,
but it could play a key strategic role in the narrative for other purposes...