Member Info for starsalign

$72m or thereabout? Is it a trick question or just checking my counting skills?

"recovery of PAST costs will accelerate at higher oil prices, incentivising investment to grow production"

That statement is still there, make up your own mind if there's a reasonable possibility SOMO will pay via monthly entitlement going forward.

Also not sure how you envisage the KRG finding the facility to pay back IOC debt at $40m per month for 2 years?

Not totally relating it to Wood Mackenzie but just the feeling the interim arrangement will somehow be extended.

Sounds ominous, anybody else thinking another 3 month extension to interim arrangement is on the horizon?

According to Genel CFO .Tawke PSC is unique in Kurdistan in that it has recovered all past costs (apart from arrears presumably).

Strange thing to say when he doesn't know position of other IOC's and their PSC's?

He was emphasising that any future investment would be quickly recoverable as has been mentioned here a few times.

Currently unavailable, thanks again, will watch later but you have answered my question and probably nothing more of interest.

Thanks, can't see it on their website atm, normally appears on youtube after a few hours.

Hi bdgn, being lazy here but was there any indication that DNO/GENL will change from local sales to SOMO exports in the near future or still wait and see? It has been widely reported that Tawke production is sold locally and then fed into export pipeline, no idea how they're getting away with that as seems an unnecessary middle man must be making a cut somehow?

And the tightened $20pb discount has added how much?

SOMO to pay via our monthly entitlement and subtract it from KRG budget allocation.

There you go, all sorted :-)

Yes, that was my point, hardly worth mentioning a new line of receivables when it may be close to break even or worse.

Think we're assuming GKP are invoicing as per the arrears are in the CRP and that invoice will be rejected. It's almost like looking for trouble if that situation hasn't been clarified before restart of exports.

GKP now effectively have 2 lines of receivables to deal with if you don't believe the historical arrears will be paid via CRP.

We now also have the recent receivables for the interim/entitlement differential which is going to be a minimum 6 months (in total from Oct) and possibly more with all other IOC's in similar situation.

Here's another one since we're all getting on so well :-)

Cash balance 9th Dec - $75m, cash balance end of year $78m

It was advised here several times that the £75m on 9th Dec appeared to include full interim payment for Sept and Oct production so wonder where the extra cash appeared from?

I'm probably missing something obvious so go easy on any replies please.

"When Oil price is higher, Max revenue is higher so our allowable max 40% cost oil is higher"

I'm not the best person to explain this but basically that's only true when there's a balance in the CRP to reclaim.

The CRP is currently at zero (apart from the arrears) so GKP/MOL simply reclaim their allowable costs for that particular month. If they spent $6m they'd get $6m back via entitlement payment so not really dependant on revenues.

Obviously if the CRP starts to build then recovered costs will grow with revenues.

Sure Putup will correct me and word it more succinctly?

As I've said recently I believe SOMO will pay via monthly entitlement and 'past costs' will include those arrears.

Think you've mentioned they are actually paying a small amount of arrears at the moment even @ $13.50pb?

Just can't see KRG agreeing (or having the facility) to pay IOC's $40m per month for 2 years.

No problem for others to have their own view though, it's actually an interesting situation and hopefully we'll have the answer on the completion of the Wood Mackenzie review.

Of course massive bonus if SOMO agree to pay this via monthly entitlement as payments via the KRG are errrrr.....inconsistent imo

Hi bdgm, I'm assuming cost arrears in this context includes the overdue receivables which perhaps should be paid by the KRG as it was sold under their control so to speak.

From latest presentation - suggests to me that SOMO will pay as part of ongoing monthly entitlement but no doubt could be interpreted in other ways.

"Recovery of past costs will accelerate at higher oil

prices, incentivising investment to grow production"

Much the same is it not?

$45pb x 40k or $40pb x 45k