http://www.dw.de/russia-and-china-sign-landmark-oil-deal/a-171750...

http://www.dw.de/russia-and-china-sign-landmark-oil-deal/a-17175029

"Speaking to Chinese news agency Xinhua, Medvedev said the contract signed between Russian crude producer Rosneft and Chinese oil firm Sinopec was worth $85 billion (62 billion euros)."

"Under the agreement, Sinopec will make an advance payment of between 25 and 30 percent of the total cost of the 10-year contract, which will start in 2014." God--pay $25billion cash in advance!---why not get a project in Russia by yourself! TU HAO !

My understanding:

1, So much money on the oil deal! Easy to understand how strong interests these Chinese energy giants will have to own a Russia energy project other than just pay cash!

2, To cooperate with HOG could be a shortcut to enter Russia energy market for these Chinese energy giants in future. I will work on this once HOG secures a good project. It's difficult for chinese company to get Russia energy projects directly.

3, Looks like HOG's development strategy is at the right places at right time. Russia and Myanmar. I just heard some Burmese drilling their backyards to find out if there are some crude oil under their house--funny but you can understand why.

From HOG recent updates:

Production and Near Term Production project in the FSU particularly Russia, where members of the board and senior management have considerable commercial and operational expertise and experience.

Hawkley has a number of projects under review at various stages of negotiation. (already got many targets and in discussions)


In Russia the strategy is based around:

A: to takeover small to medium sized oil companies with Production or Near Term Production project, with a funding partner(HOG indicated it's Russia investment bank)

SHs, please consider what kind of project can get funding from the bank? very strict risk assessment by the bank for such projects, But if passes, what that means? what benefits to HOG's SHs? at least 10 bagger imv.

GOOD LUCK HOGGY--time to put fat on now!

B: Focus on cost effective development and production - Benefit from economies of scale (means very large in size)
200MMbbl+

How to get funding:

A: Russia---to get debt funding from investment bank--- without undertaking dilutive capital raising programs.
----by HOG board

B: Myanmar----already JV with Azimuth Ltd, subsidiary of a MC $5 billion Norway energy company.

In addition: The bid round to be conducted on a production sharing basis. (means how many percent interests left for gov, not how much money the bidder will immediately invest.)

So got the projects first, then seek funding partners later, like what NEN did. No need for HOG to invest a lot.

GOOD LUCK HOGGY--time to put more fat on now!