Developing PNG assets, page-60

Ronstieb
From the 31 mar quarterly update

"In light of the material recent changes in market conditions in respect of oil price and costs, the Stanley joint venture initiated a value engineering review process to optimise project design, execution and timing prior to entering into material contracts for fabrication and construction of the project facilities. Project cost estimates are being revised, taking advantage of the cost deflation prevailing in the current industry climate"

Note optimise project design. This implies baseline costs and cashflow projections are understood.

Note project cost estimates are being revised. Again the baseline costs and cashflow projects were already known.

IMHO your point is well made. So much has happened since March. I would still expect an update against the baseline costs and cashflow projections. If they don't want to inflame the market with disclosure of high costs for delivery then that sentiment is very very late and the damage has been done. More so then they should have been working to float alternatives.

I have made many large capex funding submissions in my career. Good governance would demand the project cashflows be understood prior to resourcing against claimed benefits. In short as stakeholders we should know. Some have posted here that the claims on the png assets are now 5 years running. If we think the answer is no good an alternate plan should be formed.