It’s a difficult one to drill into in this environment. I recall hearing that kind of bumble of someone’s mouth a few times.
Perhaps we had some traction on what quantum EFA / NAIF and pre-production financing from the Koreans may have been. In a normalized environment, perhaps there was significant savings in CAPEX from the site integration which meant that USD600m might only be the covered account from ECA of USD300m.
I think everyone needs to prepare themselves for the Clough announcement this month to have some surprises in terms of price escalation and further work required - steel up 40% y-o-y and a tight labour market. From other projects I’m involved in, Europe, Australia and Africa, I understand EPC is extremely difficult to price in the this environment. How can an EPC price something that will be built in 24 months’ time in our current environment.
Wouldn’t surprise me to see significant contingencies built in which SMS flagged 12 months ago from their fixed price turnkey solution.
Time will tell
