(06-18-2016, 06:30 AM)Putncalls Wrote: "If your take is correct, why would OSH hide the facts by canceling the OSH-IPI certification? It would only cost them $$$" How could OSH cancel the certification?
Here's a scenario that seems to make sense:
1. Botten estimated 5 TCF to minimize OSH's apparent exposure to a large certification payment when viewed by his financial partners.
2. Even while underestimating at the start he knew he would have time to build cash through PNG LNG proceeds to pay for the high cert number.
3. The unexpectedly large drop in LNG prices cut Botten's expected cash flow to a level below which he needed to pay Civelli for the unexpectedly large certification. Remember, both OSH and TOT initially resisted drilling A7. That was Hession's baby.
4. Buying out IOC, financed by selling a 60% share to Total, eliminated Botten's cash flow problem. To further extend the profitability of the deal Botten and Hession conspired to corrupt the independent appraisal process.