Thy,
When looking at the SPA it is crucial to look at the SEC filing and not at the preliminary SPA agreement on the IOC website. The Discovery bonus is not paid unless the parties agree on the volume (or disagree and pay for the Experts to come up with the volume). Then the Discovery Bonus is only paid on the volume IN EXCESS of 1.0 Tcf, and then the rate is $65,471,208/Tcf in Excess of 1.0 Tcf; not $100 million. The final agreement was tweaked by the change in % that Total ended up purchasing after OSH "intervened" in the process. Here is the language from the SEC official SPA agreement. Also the Discovery is not paid until "within 10 Business Days" of the first LNG Cargo leaving port; well down the road. And per mgmt. it IS based on the 1 Exploration well.
"3.9 Discovery Bonus
If the Carried Exploration Well identifies an accumulation of Hydrocarbons outside the PRL 15 Fields but within the PRL 15 Area, the existence of which until that moment was unproven by drilling, and such accumulation contains 2C Hydrocarbon Gas or 2C Condensate in excess of 1.0 Tcf, then the Buyer shall pay to the Seller a Discovery Bonus of sixty five million four hundred and seventy one thousand two hundred and eight U.S dollars (US$65,471,208) for each 1 Tcfe of 2C Hydrocarbon Gas and 2C Condensate in excess of 1 Tcf (or pro rata for part thereof) discovered outside the PRL 15 Fields but within the PRL 15 Area by such Carried Exploration Well (“Discovery Bonus”). If the parties cannot agree the volume of the 2C Hydrocarbon Gas or 2C Condensate discovered by such Carried Exploration Well then either party may request that Experts be engaged in accordance with the procedures in Schedule 4 to certify the 2C Hydrocarbon Gas or 2C Condensate upon which the Discovery Bonus is to be calculated. The Discovery Bonus shall be payable within ten (10) Business Days of the First LNG Cargo leaving port."
When looking at the SPA it is crucial to look at the SEC filing and not at the preliminary SPA agreement on the IOC website. The Discovery bonus is not paid unless the parties agree on the volume (or disagree and pay for the Experts to come up with the volume). Then the Discovery Bonus is only paid on the volume IN EXCESS of 1.0 Tcf, and then the rate is $65,471,208/Tcf in Excess of 1.0 Tcf; not $100 million. The final agreement was tweaked by the change in % that Total ended up purchasing after OSH "intervened" in the process. Here is the language from the SEC official SPA agreement. Also the Discovery is not paid until "within 10 Business Days" of the first LNG Cargo leaving port; well down the road. And per mgmt. it IS based on the 1 Exploration well.
"3.9 Discovery Bonus
If the Carried Exploration Well identifies an accumulation of Hydrocarbons outside the PRL 15 Fields but within the PRL 15 Area, the existence of which until that moment was unproven by drilling, and such accumulation contains 2C Hydrocarbon Gas or 2C Condensate in excess of 1.0 Tcf, then the Buyer shall pay to the Seller a Discovery Bonus of sixty five million four hundred and seventy one thousand two hundred and eight U.S dollars (US$65,471,208) for each 1 Tcfe of 2C Hydrocarbon Gas and 2C Condensate in excess of 1 Tcf (or pro rata for part thereof) discovered outside the PRL 15 Fields but within the PRL 15 Area by such Carried Exploration Well (“Discovery Bonus”). If the parties cannot agree the volume of the 2C Hydrocarbon Gas or 2C Condensate discovered by such Carried Exploration Well then either party may request that Experts be engaged in accordance with the procedures in Schedule 4 to certify the 2C Hydrocarbon Gas or 2C Condensate upon which the Discovery Bonus is to be calculated. The Discovery Bonus shall be payable within ten (10) Business Days of the First LNG Cargo leaving port."