Ann: Balai Cluster RSC Project Finance Secured , page-9

re: Ann: Balai Cluster RSC Project Finance Se... Hi Sharks

That is my understanding also. What I meant in my original post was that the contractors are taking all of the risk for Petronas. What happens if the contractors get to the end of the pre-development stage and the development is not economically feasible... well collectively the Contractors are are in the hole for $230m.

If the fields get the go ahead then 48% of $750m is $360m which is a huge amount. Especially on a project that ROC is taking development risk on in return for a fee. This better be a very large fee but I haven't seen any guidence on the quantum?

I can't see any talk of obtaining an equity/production share in the project.

I was really likely the look of ROC until I got onto the Balai Cluster - I just can't see why anyone would do this kind of deal.

Maybe I'm missing something?