I note BOW have had similar vaguaries in their presos about their development options. Perhaps the juniors know something we don't?
In reality I think the majors are possibly first concentrating on project execution and running their financial models on CAPEX vs OPEX numbers for subsequent trains. I think Yaq made the remark a few weeks ago about buying ESG for $2b or contracting for supply for $6b. To me there could very well be a strong case for going the lower CAPEX option (GSA with junior suppliers as opposed to taking them out) given the relatively long lead time to production and high inital capital outflows those companies are currently committed to. It would certainly be an option to mitigate financial risk in the projects.
ESG Price at posting:
71.0¢ Sentiment: LT Buy Disclosure: Held
