Note also that the cash side of the deal becomes worse, relatively speaking as the size of the E/A volume increases. Under the SPA rules IOC gets 3 escalating tiers of payments from 3.2 TCFE upward. Above 6.5 TCFE the gross payment is $1.00 per MCFE for incremental gas. The buyout is zero below 6.2 TCFE and only 77 cents per MCFE above it. So the bigger the volume the larger share of the certification payment OSH gets on a percentage basis vs. what IOC would get under the SPA without the buyout. Of course those are gross numbers. IOC actual share is that times 40.125%. We get paid more cash as the field size grows, but gain a smaller and smaller percentage of the total. But obviously in the buyout case you get cash in hand, whereas if IOC gets it, you'll never see it. It seems OSH should have put us on parity; not screw us more as the field gets bigger. There should have been a cash payment for the volume from 3.2 to 6.2 TCFE (like the SPA) and then all the value above that should have been on a fixed percentage for everything above that. As it is we get a declining percentage in the buyout.
I haven't looked too closely at the Total part of this, but it seems they are by far getting the most out of this deal. How much will they bend to make a better deal for us???