Ann: Project Update, page-23

Very interesting announcement indeed!

I’m quite surprised that the other party has ‘ceased discussions’. Given all the derisking factors that have occurred since then and are known to be incoming (PEDPA, PSA noted to be approved, Aztech contractors, seismic campaign) I would have thought they would have been more keen then ever!

IVZ now knows they’re in a stronger negotiation position and the original % partnership with the party was likely well under what IVZ feels they now deserve. Maybe the original offer was 40% IVZ, 40% other party and 20% One Gas.

Quite possibly IVZ wouldn’t accept anything under keeping 60% for themselves… leaving 20% for another party. Which for Tier 1s and Tier 2s isn’t really worth the effort.

Doesn’t seem like a farm-in isn’t completely off the cards… The ball is in IVZs court now for the negotiations. Will be interesting to see if any parties want to come into the project with such a small % ownership… highly unlikely.