galoc 2 business end, page-16

Dargie,

100% recovery applies to an EWT (100 days or 1mmbbls, whichever comes first).

This is an infill development of Galoc so more than likely will not fit the category as they've already had an extended test period with phase I. Official clarification would be good!

I'm inclined to think cost recovery for phase II will come under the standard Pines Service Contract terms, viz...

"Under the terms of the PSC agreement, operators can recover costs from up to 70% of the gross production (60% in WD <200m) with any unrecovered costs carried forward."

Here's a link to the terms...see pg 4.
Galoc Update 2009

BTW, no royalties are payable under the terms of PSC's.
Basically the Gov takes around 60% of profit oil leaving 40% for contractors.