06-02-2016, 01:45 PM
Once you have to get legal in an agreement everyone loses and the financially strong party "wins" by dragging things out in court. There also is the JOA for PRL 15 in addition to the SPA. So IOC post winning a vote that stops the deal (if that's possible) now says, OK let's move ahead to drill as we have all agreed on Ant 7. Total says, OK once the PNG gov gives us permission to drill. Gulp, PNG liked the deal. How long can they drag things out and IOC can do nada.
But PNG moves at PNG speed and says in November, you can now mobilize the rig and drill when all is good to go on your end. IOC cash still daily going out the door and is not carried on Ant 7 well (per the legal document SPA). Things get going and the well proceeds and finally gets to TD. Now we must test and to be sure we want to test for connectivity to rest of formation as we may hit nicely but did we maybe cross a fault? We MUST be sure. All this goes for over a year from now.
At some point a cash depleting entity staring Dec 31 deadline for the $400 million LOC cries "foul" and files a Claim/Dispute. What?!! Says Total. Well we just have to see this through now........
Tick tick tick. "Utilize the shelf" come the pleas. Issue debt, issue equity. Do something until we can get that elusive Certification........
But PNG moves at PNG speed and says in November, you can now mobilize the rig and drill when all is good to go on your end. IOC cash still daily going out the door and is not carried on Ant 7 well (per the legal document SPA). Things get going and the well proceeds and finally gets to TD. Now we must test and to be sure we want to test for connectivity to rest of formation as we may hit nicely but did we maybe cross a fault? We MUST be sure. All this goes for over a year from now.
At some point a cash depleting entity staring Dec 31 deadline for the $400 million LOC cries "foul" and files a Claim/Dispute. What?!! Says Total. Well we just have to see this through now........
Tick tick tick. "Utilize the shelf" come the pleas. Issue debt, issue equity. Do something until we can get that elusive Certification........