12-30-2015, 01:21 AM
(12-29-2015, 03:20 AM)Getitrt2 Wrote: As far as I know we don't have access to the agreement between OSH and Pac LNG, but my impression is that the drilling of an A7 will not have any effect on their calculations of the additional payment due Pac LNG. It comes down to whether Total agrees to an A7, and I personally do not give much credence to the conspiracy theories here; but maybe I am too naïve.
To my understanding OSH has to pay its license fee based on the resource estimate per year ultimo. So, IOC has the opportunity to evaluate the assessment of the recent seismic research on the westflank. If this assesment is a disappointment, they will be more motivated to proceed with A7. However, IOC needs an ally in the JV who has to decide to drill A7. Total is probably not interested in A7. However, IOC can help OSH with the extra gas for train 3. Together with OSH IOC has a majority in the JV.