otto eyes april production date, page-3

As I understand it, under the Philippino Service Contract arrangements, the profits from oil wells are split 60/40, with the 60% going to the Gov and 40 to the contractor.

During the initial production stages, the contractors can take 70% of the output until they have recovered their development costs, then goes to the 60/40 split.

In the case of Galoc, the development paying contractors would be GPC (Vitol/Otto) and Nido (not sure if Philodrill had to contribute or was free carried - you can look that up).

OEL's development costs would be whatever % of the purchase price is deemed/allowed as relating to that...or it may be what the two GPC partners bought out had to pay in the way of dev costs, which probably would have been around 18.28% of the costs. Have not come across the figure anywhere, but that doesn't mean it's not out there.

As far as time goes...unknown until the oil flows consistently!

Interested to hear any other views.