Ok. So after finally getting some free time to further investigate the RSC for the Balai cluster, I now understand that 100% of the production belongs to Petronas. However, ROC will receive, from the start of commercial production (requiring the FID) all past costs, i.e Capex, and once that is returned, they will receive an ongoing fee which could increase depending on production levels and amount of Capex (the capex could be small negative, as they are going to have to do more work on the Balai field, due it being more complicated than first thought, however, in the longer term, the wells would probably have been drilled anyway?
So hopefully, ROC will have a revenue stream for 15 years or however long production continues. The question I cannot answer, is what will ROC actually receive regarding the fees??
That has now provided me with more context in regards to what Alan said about the RSC, as in while, they would be happy to do more of them, he would prefer PSC, which I assume, is because ROC capital des not get locked up for such a long period of time? or is it simply that they would make more money? as in the 'fees' are not that compelling.
It would seem to me that ROC should def put as much focus as possible as the current tenements they have, as there seems to be a lot of opportunities exploration and development wise (not saying they should only do that, happy for the them to expand their overall footprint across South East Asia.
Very interested in hearing others thoughts on the RSC overall and what ROC might be able to earn over the short, medium and longer term.
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