Do you realise that if Santos do not make an FID this month, then it will be the THIRD time that they have missed their own deadlines on GLNG?
(1) The first was 'the end of 2009'. (2) Then June this year. (3) And then it was 'by the end of this year'.
Or is it next year now? I keep losing track.
Santos used to boast about being "first to market". That is not something we hear from them nowadays.
3 strikes and you are out. The market really hates when companies consistently fail to deliver. And the longer Santos takes, the lower their share price will get. There is only so many time allusions to offtakes deals with Kogas can be leaked without the market wanting to see the deal, and an FID. And the market clearly has woken up to the fact that Santos simply do not have enough gas. The market knows it. And the Asian buyers certainly know it!
And Santos' artifically trying to beef up their 2P reserves by grossing up their 'portfolio gas' (that is, ESG's gas) is like Santos stuffing the proverbial sock down their pants - they are fooling no one. :)
"Gas envy" is what Freud would say Santos has. Gas Envy.
And it just reveals what a weak negotiating position Santos is in, in relation to ESG.
Yaq
ESG Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
