Ann: UK Southern Gas Basin - Further Operational Update, page-13

Hi @Mitchdon interesting analysis. Assuming that this is the plan going forward, the opex cost model also becomes very predictable at the start, since I expect the funders and the JV partners would fix a tariff rate at the onset of development which would remove the risk of capex cost blowouts to the JV as well. In other words, the risk discount usually applied to the share price during development should be removed. Additionally, the upside benefit to gas prices improvements remains with us. the more I look at this model, the more I like.
As a footnote, I assume the reason they are now talking about this is because constructors and suppliers prices are currently falling and they want to lock in whatever work they can get during this uncertain fiscal period.