Sunken costs are sunken costs. Even if you build a $20B Gas field. If your variable costs are greater than your sale, the smart man walks away as by running the plant you lose more money. Only when your variable is less than your sale you might lose money but you lose less as it recovers part of your sunken/fixed.
OSH would be looking to see their best alternatives to a negotiated agreement and if an alternative is better then the current deal you should be happy for them to walk. Realistically PNG will come back to the table.
OSH Price at posting:
$6.46 Sentiment: Buy Disclosure: Held
