Discussions with Maki and Paul regarding trucks ..... they plan around 30 trucks, 15 a day in each direction.
The route is sealed highway. I think there may be a small unsealed section of road from S-1 to the highway.
The Yemen Govt is very keen for them to start production and they have the full backing of the Shabwa Governor.
They will be travelling through lands belonging 5 or so tribes so they are negotiating with each tribe for route access and safe passage.
It takes a lot of tea drinking to negotiate in Yemen and they have to multiply that by 5.... not a fast process
The tribes will have a vested interest in the operation because they will each provide some trucks for transporting the oil.
The truck loading rack is designed and out to tender for fabrication in the US with an approximate cost of US $250000 -$300000
There already is a spare valve on one of the oil storage tanks so hookup of the loading rack is simple.
They are negotiating with Glencore for purchasing the oil although there may be some interest from the Chinese. The Yemen crude is sweet so great for blending with the more sour Chinese oil for refining.
PSA are serious about the trucking operation and when you think about it they will also need trucks to produce the oil when they production test their Block 7 field.
Cheers
Dan
PSA Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
