may be someone can provide the full text but the RNS itself is saying the same. Back to the same point, it all depends on the GSA ad ONEE decision. If they confirm, it will be easier to have a partner (egg and chicken).
In their RNS today The Company has achieved another important step in progressing its drilling plans in Guercif with the approval of the EIA. Importantly there is scope for further drilling to rapidly follow-up a potentially successful initial campaign. Morocco represents an exciting opportunity for phased monetisation of gas combining near-term demand, supported by very attractive in-country gas prices, from large domestic industries desiring to switch to gas if available, and the medium-term ability to develop gas-to-power. New gas resources will carry a premium and may prove attractive to an acquirer. We look forward to updating the market on further progress."
Can SLB accept to be in a deal played with the intention to impact PIs like this? can the Moroccan entities collude with JP and anyone else to drive things the conspiracy way knowing that one day anyone of those involved could spread the word? yes everything is possible but there are things that are less likely than others.
1. there is a need for gas in Morocco (how much?). 2. A diversified supply is through LNG import (fact) 3. Even an FSRU (cost effective) is not economical at low send out (100--200 mmscf) 4. in 2021, morocco will own the Maghreb Europe pipeline 5. Morocco will get fees for the transit. Likely to be in kind 6. But morocco wants some "independence" from Algeria gas 7. therefore, tendrara gas although one source helps in the above (a combination with Algeria gas is better that 100% from Algeria)
TW for sure is playing for his own interests. Will he be successful? who knows. But James Parsons and co were doing the same. Lets say this is past. Mohammed should be transparent and share a strategy map with people who own 50%+ in the company. BSiting people with LNG stories is not helping.
RE: Why cant SOU sell 60 mmscf to ONEE?19 Feb 2020 08:01
Soundingoff, A brand new FSRU costs around $250 million (send out capacity up to 1 billion cf). Maritime work is site specific but assume another 200 millions so that's around 450-500. If ONEE buys LNG at 5$, that's at least 2.5 saving $. For 60 mmscf on 15 years it is $822 millions (non discounted) with a residual value for the ship and access to international markets..So ONEE will be in a goo dilemma here If they can get the 7-8 $ prices and the discussion is ongoing with ONEE fine then good but my feeling is that it is not because of the simple math here. That's why I was suggesting that if SOU can make its offer in way to make the LNG option looks non attractive, then who knows..as for renewable, there will be a need for gas as a back up and the 60 mmscfis much les of what is announced as gas needs.
Why cant SOU sell 60 mmscf to ONEE?19 Feb 2020 06:55
I am thinking that the issue is more about ONEE and the gas prices. Why would ONEE pays 7-8$/mmbtu while LNG is at 4-6$/mmbtu? if this is the case, why SOU cant accept say 5$/mmbtu and increase volumes to 60+mmscf/day? that would make around $102 millions. It can pay the $40 millions to Enagas and can even have a good dividend just out of the Horst. The business model would be attractive to someone who wants a "utilities/safe" kind of return with exploration upside.