Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
CoMan - are they changing the lifeboats to increase the POB? Assuming you know that detail.
Willec - the ship will remain in port at Las Palmas for liffeboat upgrades as stated in a post on LinkedIn).
How long that process will take is pure speculation. In my experience these upgrades will take a minimum of 2 weeks, but could easily extend into 3months due the need to have the ships certified for such operations.
IMO it'll be done some time toward the end of October.
Hope this helps a little.
Willec - I read somewhere it is stopping in Las Palmas for lifeboat upgrades. Once that’s completed and (assume) certifies it’ll mobilise to its next job.
If you check the following link https://www.stena-drilling.com/our-fleet/stena-icemax/ there is an availability chart, and there is a clear operational band that appears to tie in with our planned drill dates.
However, until formally RNS'd this could just be coincidence.
DYOR
Novice, I wasn't answering your comment, apologies if it came across that way. I was only responding to Jim. I think our posts crossed.
I don't dispute pension funds would invest in O&G, I'm just not convinced one would take a stake in this project considering where it is. From what I've seen and heard previously the commitment would only come once the drill has proven up reserves/other conditions are met.
Jim, I admit I hadn't caught on to the pension fund statement. But I agree with your assertion. Not a hope in hell you''l have a pension fund invest in this kind of venture.
I like you believe the Stena option is the most likely to bear fruit before the final drill results.
Totally agree Gents, plenty of people promoting their own agenda on the 'casino'
Been there got the t-shirt on that front.....
Thanks jcgswims
I think Schroders are selling still, or at least that was communicated on this board. Presumably they're not expecting to be significantly divested by the time the vote is required?
Further details from April 27th RNS:
QUOTE
I am particularly pleased to share with our investors and the market that, in order to fast track the appraisal/development of the Lower Cruse, we have signed a Term Sheet with a third party drilling contractor to drill a second well in the Lower Cruse, the same contractor who drilled the Saffron well. It is expected that the well will be drilled in Q3 2020, subject to a stabilised oil price (above US$35 for a sustained period) and operating environment. The well will be fully funded by that third party in return for a share of the production from Saffron 2.
UNQUOTE
Wilibobs, are you referring to Saffron 2? As I understand it, the contractor is unnamed. Probably a local Trinidad drilling company.
Cars - thanks I took Leo's comments slightly differently, we've been plugging away for a few years now, having been producing in the range $50-60 per barrel. Go forward oil is looking relatively healthy, especially as the supply side is impacted through OPEC+ cuts, and less investment in new production (at this time). But with production numbers where they are it was going to take longer to hit the 500m target he'd set himself.
I don't contest CERP would be far more profitable in the medium term as oil recovers. One of the key parts of any Goudron extension is a review of the tax regime, where we end up worse off (from memory)when oil trades at $60 vs $48).
If the merger doesn't happen, I think CERP would struggle financially for a few more years. Leo said it himself, we would need to bumble along for some time longer surviving but not growing, and certainly not at the rate he anticipated for his original roadmap.
I don't think its all just about production in CERP at present (but I think that answers why its only 25m deal). There's potential to raise the numbers (perhaps significantly) with a development at SWP and reactivation of Weg Nar Zee in Suriname. These need cash but onshore development is far far less expensive than any offshore development.
Cars - I'm of the same thought at this time. What BPC BOD have said does align with what I've heard as a general rule in the PE space. II's want a mechanism to get their money back if the 'main bet' goes sour. Appears to me that they see CERP as a hedge against Pers1. With upside that both come off?
Harry - I have a general understanding of why production is low, hopefully this helps to clear some of the queries up anyway. I'm not a production engineer but have worked in operational oil fields.
Pump capacity is not related to what the well/reservoir can actually achieve. Over time the reservoir pressure depletes as you let the oil out the ground (think of a champagne cork popping and all your Bolli coming out in the first ten seconds). Without the pressure to drive the oil out the reservoir the pump will only lift what creeps into the well. For instance Goudron has been producing for a long time and the reservoir is pretty well depleted - as such the driving force is much weaker than when originally spudded/developed. Add to that sand and other solids that restrict the well bores (this all eats into the potential production).
This is why SWP was so important, its a reservoir of oil that's not been depleted as yet, as such should see far better rates and something more akin to nameplate capacity of the production facilities the technical folk specify.
We used to have a very knowledgeable holder Bamps21 on CERP board but sadly I think he's taking timeout just now due to this merger business.
Apologies, I should have said Stena 'option'.... Look forward to the write up.
Best
Toldo
Morning Star,
Quick question as you seem to be very knowledgeable LTH of BPC. Am I right in thinking this Stena buy in has come about at the same time as the unconditional rig contract announced in May?
I happen to agree with Prospect here, doesn't mean its a bad thing, as long as the new BOD deliver.....
Good find Tiburn, thanks for sharing.
Not a holder here but, will be once the merger goes through. I really don't understand why the BOD don't communicate this via RNS Reach so everyone knows whats going on.