|
The next Cairn Energy ?!?!?
BitterLemonTart - Sat, 22 Oct 05 :
surf
Bronze Contributor
Joined: 07-Jan-05
Posts: 181 Posted: 22-Oct-05 at 19:06 | IP Logged
--------------------------------------------------------------------------------
citywhispers - 21 Oct'05 - 15:02
S&L is about to be converted to a PSA news already out in Dubai!!!!!!!!!!!
Back to Top
Scoby
Regular Contributor
Joined: 08-Dec-04
Location: Ireland
Posts: 91 Posted: 22-Oct-05 at 19:12 | IP Logged
--------------------------------------------------------------------------------
There seems to be a level of subdued hysteria on the BBs since CW's enigmatic post yesterday.
Bahouse' considered posts are a welcome contribution at this juncture.
My own take would be similar with a slightly different emphasis.
Right now Iraq has no money. Was it Bo said the budget was bare even for S&L contract ?. So how can Iraq raise funds? The international finance organisations are not charites. Their collateral would be political stability, legality, and security. For Iraq to develop its assets it needs to issue PSAs sooner rather than later with the burden of funding shifted to the oil co.
Petrel also needs money. Its sources would be Shareholders (a well which could quickly run dry in the absence of a performance track record) or finance institutions. The latter would be reluctant to advance much funding on the basis of the current S&L type cash contract.
For the Petrels of this world to seriously contribute to development of Iraq they need PSAs sooner rather than later.
I cannot see how Iraq could countenance changing any of the existing agreements. They would lose all credibility and the losing competitors could cry foul.
As regards the legality issue, again I cannot see any future Govt. cancelling any agreements signed by the current incumbents.
I seem to be arriving at the same conclusion as Bahouse but with a foreshortened timescale.
We should see PSAs for new contracts sooner than we have been anticipating.
Scoby
PS I can't understand the assertion made in some posts that oil not yet flowing belongs to nobody.
It belongs to Iraq.
Back to Top
BoRed
Platinum Contributor
Joined: 09-Feb-05
Location: Lao People’s Dem. Rep.
Posts: 1370 Posted: 22-Oct-05 at 19:35 | IP Logged
--------------------------------------------------------------------------------
I agree scoby. PSAs will happen, hopefully sooner rather than later. But [lack of]political authority poses the greatest obstacle for the time being
Edited by BoRed on 22-Oct-05 at 19:39
|
|
|
|
