11-15-2013, 09:41 PM
'Stavros' pid='31796' datel Wrote:9.45 trillion cubic feet of wet gas 83.7 million barrels of Condensate net to IOC!!! Worth ~$8 Billion at today's condensate price. Since oil and condensate prices are expected to rise at the same rate or faster than inflation, the NPV of the Condensate is also $ 8 Billion give or take. How is this being factored into the NAV by the likes of Pavel Molchanov et al? It seems to me that this huge asset is being ignored when the sell down price is being bandied about.
There is no deal in place nor a means to monetize the assets yet. Or those condensates are worth a lot more when the facility to monetize that asset is announced , built and functioning. Today they are in ground with a very low value. When the deals are announced , contracts signed to monetize those assets the analyst price targets will soar. Thats not the case today. Pavel is correct today.