I agree Palm ... IOC will remain resource rich but ca$h poor
Good CEO's are now taking large pay cuts, in commiseration (Definition: to express sadness or sympathy for someone who has experienced something unpleasant) with shareholders who are bleeding profusely
Hession ... ???? NOT
Hession said there's no reason to borrow from the current lending facility because he thought "early works" on Papua LNG Project would commence after the Certification Payment.
To my opinion he was purposely fibbing . . . again.
He can hide in the Safe Harbor of Singapore whenever he does this.
He knows very well that A-7 will delay Certification Payment until roughly December.
As I understand, IOC must also pay their share for drilling A-7 ... which will set them back $15 - 35 million.
I suspect IOC has already started ponying-up their share of the EARLY "early works" costs ... and he knew it.
I wouldn't be at all surprised if IOC must extend the $300 million Lending Facility into 2017 and increase it to $400 million or more.
Would that be a good thing??
YES it would be very good news because it would mean the Banks fully support IOC and have determined there's no risk of not getting paid back in full.
The interest rate should be something like Libor +6%.
Large "early works" expenditure would also validate my opinion that the Papua LNG Plant will start up in 2020.
TOTAL will reduce CAPEX expenditures in 2016 and beyond.
The operative word is "reduce"
They will spend Billion$ in CAPEX on the best projects.
Papua LNG is the BEST one they have on the table.
Good CEO's are now taking large pay cuts, in commiseration (Definition: to express sadness or sympathy for someone who has experienced something unpleasant) with shareholders who are bleeding profusely
Hession ... ???? NOT
Hession said there's no reason to borrow from the current lending facility because he thought "early works" on Papua LNG Project would commence after the Certification Payment.
To my opinion he was purposely fibbing . . . again.
He can hide in the Safe Harbor of Singapore whenever he does this.
He knows very well that A-7 will delay Certification Payment until roughly December.
As I understand, IOC must also pay their share for drilling A-7 ... which will set them back $15 - 35 million.
I suspect IOC has already started ponying-up their share of the EARLY "early works" costs ... and he knew it.
I wouldn't be at all surprised if IOC must extend the $300 million Lending Facility into 2017 and increase it to $400 million or more.
Would that be a good thing??
YES it would be very good news because it would mean the Banks fully support IOC and have determined there's no risk of not getting paid back in full.
The interest rate should be something like Libor +6%.
Large "early works" expenditure would also validate my opinion that the Papua LNG Plant will start up in 2020.
TOTAL will reduce CAPEX expenditures in 2016 and beyond.
The operative word is "reduce"
They will spend Billion$ in CAPEX on the best projects.
Papua LNG is the BEST one they have on the table.
Drivel Maven with Personality