GJD05/Sojourner "this is completely standard in project...

GJD05/Sojourner

"this is completely standard in project financing"

I wonder why the banks didn't insist on it?  (A lot of US Shale oilers are not hedged!)

Having worked for large mining firms they didn't hedge. (Certainly where the firm (Africa) was sailing close to the wind they hedged).  When it came to insuring they would only insure if in the event of a total loss the loss would exceed $10M (It would be $20/30M these days)

They would take the attitude "What if" and if the event was likely to put the operation in peril they would insure/hedge.  I haven't done my sums but reading some of the more credible posts here Tap can still meet their obligations and is a going concern even at 60 USD/barrel.