Hi Mad Hare,So you know the procedure for default on Cash Call...

Hi Mad Hare,
So you know the procedure for default on Cash Call by operator do you?
6 months of non payment default and you are shown the door,loss of % stake and no compensation.
The show goes on regardless of PE dispute,the JOA clearly states this fact.
FID All the way to production.
The Only item allowed to be ring fenced and removed from the JOA is Fars PE Dispute.
The Project moves on regardless,so don't expect PE to stop FID, Finance or Development.
If Far cannot come up with finance,the other JV partner's have to stump up per % of their share for Fars share of defaulted costs.Far will have to pay interest at current libor rates +1 or 2 points.
If default lasts for 6 months,it's game over for Far.they lose everything, with no compensation.
So hardly a red herring.

Kimbo66