Hi folks
good to see all the commentary and respected posters on board.
feels like a mini BCC reunion (danpech , Cmon, Cyberguy
Listening to Webcast here are seome key themes
New style PSC have better terms than old PSC to encourage reinvestrment in marginal fields and large mature fields
Fields - OIP 650 -750 million barrels
View less complex than Chinese fileds Roc operate
stepped development
The bigger prize is the secondary and tertiary recovery which have been succesful in other areas in malaysia
PSC structured as follows
early commitment to increas production
then detailed analysis of reservior .
possibility to recover 20-30% of original OIP therefore abou 120-170m potential recoverable
Rocs commitment is stepped therefore less risk
Rocs confident "firmly believe" phase 2 willl be succesful
Commercial terms
New PSC reset starting 1 Jan 2014
50% of cost and benefits
25 m cash payment over 4 years
carry of 80m spread over phase 1 and 2 part of minimum work commitments ( total phase 1 and 2 is 120 which Roc pay 80 million over 4 years )
Roc operator for redevolopment
Contracts
Revenue over cost to get flow and givt tax
begining of project contractor gets high take to get money back quickly
overtime , contracted take decreases and govt gets more
Progressive volume based cntract incentivises you to get more volume out of ground and as volume increases , Roc will get more with increases volume - so it will get better the hugher the volume - works opposite to PSC
Roc get all costs back including Carry, 60% of oil sales pay tax
Profit oil taxed - at highert than higher than 38% but a number of tax breaks offset this
Min fiancila commitments - no additional funding in phase 1.
pahse 2 will depend on how redevelopment in phase 2 looks, high large a project
High level guidance
Production 5,000 barrels gross for 2014
Opex 20-25
Capex - 40-50m net to Roc which includes portion of carry which is fully recoverable
Ammortisation 5-10 per barrle in 2014
earning accrediditive project in 2014 - 25-30m of additional profit after tax impact
Add to My Watchlist
What is My Watchlist?
