Extremely Rough Value Calculation, page-180

Sorry but the default under the JOA as described by FAR can be remedied and is not the end of the world.as you suggest. FAR are using the letter of the JOA to manage their cash flow and business. Many businesses both large and small do actively manage their cash flow in difficult times by extending payment terms whether the other party likes it or not. The default under the JOA looks like it is being be used to delay payments (at a small cost), in effect a moratorium. Oil price is $43 tonight. If it is $50 in a few months time them FAR may have some options available to them. I do understand the ramifications of default. It only becomes a default if it is not remedied, in which case FAR's interest in the joint venture is lost and it is taken up by the other JVPs. If FAR elect to remedy it then they have only lost 2% of the defaulted amount (2% of $12m at present).

This is survival. You need to step out of your cosy sanctimonious Woodside tent into the harsh reality of FAR world to get a different perspective. Kudos to FAR management (for once).