FAR has met the requirements of phase one of the PSC and have requested to enter the second phase which will require one well within 2 years with a $5m bond. The decree is all about being able to progress with drilling.
The company, Hartleys and anyone else that has written about the PSC, believes that FAR have a legal right to enter the 2nd phase and currently have “90% beneficial interest” in the blocks. I would take beneficial to mean they have 90% of any oil that is found in these blocks or overlapping from others.
What reason would Senegalese government want to break this contract with FAR and if that was their intention why have they not done it by now? On the flip side, it would be interesting to know what would be the ramifications of Senegal breaking the contract, payout to FAR? Has anyone here come across PSCs being ended even when all conditions have been met? You would think it would end up in court if it happened.
Is my understanding of the state of play correct?
As I have said this every year since getting into FAR, next years going to a big one. I hope I am right this time :)
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