Its not new. Similar in Senegal. Didn't stop Woodside from buying out the jv partners even though they knew the would retain a third of the production profit after they recovered their investment costs. Its the newbies to the oil industry expecting the explorers keep the majority.
Some countries offer a discount on their marginal plays. E.g. Malaysia recently dropped their rates to 25% on their older but marginal field to encourage exploration to extend their life, but that is an exception.
I wouldn't have expected SM to state specific percentages unless the ppsa was in place. Sounds like we're going to get the industry standard rate rather than any discounted % but nothing has yet to be legislated.
IVZ Price at posting:
6.8¢ Sentiment: Buy Disclosure: Held
