It is so much worse than that.
According to my analysis here:
73484175
, I believe it showed that the Joint Venture partner are not paying their 70% for the work program, this might be primarily due to being overbudget/overruns (maybe the JV contract says Sonangol does not need to pay 70% of expenses outside the scope of the JV contract?)
It appears to me that all the down hole risk is with the operator, and this includes the work activity running over budget.
Even if the facility with Sonangol was as large as $1billion, it really doesn't matter because usually it is best practice for a representative from Sonangol to sign off before any draw down. In other words, they will only fund what was agreed upon according to the Joint Venture contract.
Up until March 2023 Sonangol only paid what was agreed upon back in 2020... (source: 73484175) In other words... Are Sonangol not contributing to expenses if the work program runs over budget?
It would be a good question for the next webinar.
If this is the case, ASX:MAY's finances are in bad shape.
