I guess one needs to ask where IOC's rigs are right now: both are in PRL15 and they are in negotiations with Exxon who likely says that if we conclude deal negotiations, those rigs stay in PRL 15 for the near term to delineate the structure as stated. To assume IOC can yank its rigs to go to Tri during this time is probably a bit shortsighted.
That means PRE would have to be bringing in any Rig(s) and we have heard nothing about that. In fact in their 2Q presentation I see no mention right now in their Exploration slides of Tri (correction; I see mention of Tri/Raptor; 1 in Q4)
Then we have the unknown of what exactly Exxon (or any other operator) would allow and prohibit during negotiations. If we look back to the Mitsui deal it had a specific clause that disallowed activity by IOC which would possibly hurt its capital position and permission to do certain things was required. I'd guess Exxon has done something even more restrictive until things are finalized. And I doubt IOC wants to chance anything negative hurting its cash/capital position that could jeopardize the deal(s).
Once again we are handicapped by being on the outside, but when reviewing contracts and contract language for deals such as these they are full of what can and cannot be done at specific times. The preliminary terms very well could have the clamps on drilling activity. And the government might be saying the same as many here. IOC has drilled and found resources, but a deal needs to get done on PRL 15 before you drill anything else. Note that the proposed PRL for Tri has yet to be approved. PRL 15 was applied for and received in little more than a month.
That means PRE would have to be bringing in any Rig(s) and we have heard nothing about that. In fact in their 2Q presentation I see no mention right now in their Exploration slides of Tri (correction; I see mention of Tri/Raptor; 1 in Q4)
Then we have the unknown of what exactly Exxon (or any other operator) would allow and prohibit during negotiations. If we look back to the Mitsui deal it had a specific clause that disallowed activity by IOC which would possibly hurt its capital position and permission to do certain things was required. I'd guess Exxon has done something even more restrictive until things are finalized. And I doubt IOC wants to chance anything negative hurting its cash/capital position that could jeopardize the deal(s).
Once again we are handicapped by being on the outside, but when reviewing contracts and contract language for deals such as these they are full of what can and cannot be done at specific times. The preliminary terms very well could have the clamps on drilling activity. And the government might be saying the same as many here. IOC has drilled and found resources, but a deal needs to get done on PRL 15 before you drill anything else. Note that the proposed PRL for Tri has yet to be approved. PRL 15 was applied for and received in little more than a month.