Ann: Investor Update, page-35

Retired,

I haven’t checked on the ship building industry, so I am just speculating, but I suspect the ship yards may have been busy building tankers due to extra demand for ship borne oil trade with Russia oil diverted from pipeline European sales to long distance ship routes. Might not help in trying to procure a new build FPSO at a reasonable price.

Also someone posted above about something referring to border closures impacting the Asian ship yards. That makes a lot of sense to me with Batam in particular, where a lot of offshore oil and gas fabrication has traditionally been done.

Also with sky high shipping rates the past couple of years there has presumably been a ship building frenzy in general.

Lots of factors that I am not well acquainted with have probably led to a really difficult ( but temporary) period for ordering an FPSO, at a realistic price.

Then there is digesting Pavo, and any earlier gas market window STO may have eyed.

I might be wrong but I am still very confident that the project is robust, and the delay wont be too protracted. I’d hate to see distractions with at best cashflow neutral, piddly existing producers as some here have suggested,

Reliance on either Saudi or Russian oil highly risky imho. The Americans might have been better trying to make peace with Iran in recent decades, than courting Saudi, esp after 9/11 and even more with the ambitious nuclear wannabe MBS. Oil needs a fast but orderly phase out, without increasing reliance on these two.

EL