I think the Contractor marginal take of approx. 50% refers to Contractor Profit Oil. Profit Oil is over and above Cost Oil and is shared between Government and Contractor. The diagram on page 26 uses % production levels which I find confusing. I got the impression that the JV intends to stay below the Profit Oil level which might start at 75000bbl/day. Cost oil is subject to tax but Note (2) suggests no tax until HDR has recovered US$90 million as 100% tax depreciation on Cost Oil. My interpretation may be wrong.
Complex
HDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
