Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
http://www.chariotoilandgas.com/wp-content/uploads/2019/04/Corporate-Presentation-Apr2019.pdf
- 10 year Corporation Tax Holiday on
production
• Royalty: Oil 7-10%, Gas 3.5-5%
• 31% Corporation Tax and CGT
• Tax & customs duties exemptions
From Results:
Good progress has been made with FIG on the royalty and fiscal terms which will apply to the first phase of development of the Sea Lion field. A public consultation on a number of technical tax matters associated with oil field development in the Falklands was concluded in the third quarter of 2018 with a number of technical amendments and clarifications being implemented. These amendments and clarifications provided definition on a number of important regulatory and tax matters which were critical to enabling the project to progress.
Note : which will apply to first phase of development of the Sealion field.
Looks like some good terms for only phase1. Hope its tax break
Result says: Good progress made with the Falkland Islands Government on Sea Lion royalty and fiscal terms.
Why this can't be finalized? At least they can agree with FIG subject to FID. They could say e.g. X % royalty has been agreed subject to approval of FID.
As per update from the premier, that there is company(s) interested to invest in sealion but we will contact them after EC approval.
Why after EC approval? I am thinking a loud and reason could be one of following:
- Partner might have offered different prices per barrel for with EC approval and without EC approval, e.g. $6/barrel with EC approval and $4 per barrel without EC approval
- Premier might have said to Partner, after EC approval we will tell you how much % we want to farm-out
- Partner doesn't want to invest without EC approval?
Guys share your thoughts and this could a question for AGM specially during informal chat with BoD after formal questions are over.
we been in process with ECA for about approx. 1.5 to 2 years?
is it worth it? I mean if PMO went direct to banks the interest rate might have been 5-6% but with ECA may be 3%.
But delay of 2 years, is it worth it to delay 2 years for 2 percent on $800million.
Could happen but my feeling is after last update from PMO, now PI are reluctant and rkh currently mostly hold by PI.
As PMO and RKH are not giving any definite timeline so market is not sure. For PMO its rise is driven by POO but rkh is not producing much, only little. The rise will come if/when we get some definite timeline from PMO regarding FID.
PMO doesn't want to spend money but want sealion:
- They want vendors to pay 25%
- They want banks to pay 50%
- Now they are saying another partner is interested, so probably the remaining 25% or so will be paid by them