General Thoughts, page-4886

Seen this happen several times in my international career in the oil and gas game while working in Indonesia and UK. Squeeze the golden goose by the neck to maximise the return, but not so much that you kill it!

In Indonesia they just kept changing the production sharing contract (PSC) depending on oil price and how much the companies were making after recovering costs of exploration and development.

I have seen PCS's fluctuate from 60:40 PSC split- 60 for the government (pertamina) to 85:15 - 85 for the government and then back down again when the majors start pulling out!

I am not just picking on Indonesia. In the UK, while I was in Aberdeen, they are more subtle and just whack on a 'super profits' tax!

In Australia, the government does the same thing or tries to!

And it will happen in Namibia down the road- probably a super profits tax unless resource nationalism takes over.

Mind you, not a problem for PCL shareholders imho, as by the time PEL 87 gets into production in event of success , PCL will have been long gone as taken over after first big discovery!

As I always say 'a takeover at a good price for shareholders is the ultimate expression of selling all your production forward without the risk'

just my two cents worth.

DYOR