Ann: Strategic Review, page-29

Not at all Coopec, thats not how hedging and the derivatives markets work.

There are/were so many options available to TAP mgmt. The crux of the matter is even with the delays they had a fair idea as to when production starts. If they purchased Puts for example, that gives them the right to sell the prescribed number of barrels anytime up the the expiry of the Put.

You don't need to have the actual Bbls of oil to sell - great if you do as then its "physical delivery" tp the counterparty but just as likely it could be cash settlement with the counterparty who just pays out the contract value.

For small/mid term producers IMO hedging is essential. For companies like Chevron their size and diversification tend to a natural hedge (although I'm sure they are active in futures markets too for physical delivery).