Good post. You raise a valid point IRT the Sen Govt. and its actions / position going forward. Exploration success brings on some irrational thinking / demands at the political level at times in Africa. I know guys who are with Tullow in Uganda and have heard first hand accounts of some of the appalling behaviour towards Tullow by the Ugandan Govt. I work O&G in Tanzania and the O&G Cos. here are pulling right back in terms of forward programs / development due to uncertainty with the gas policy and fiscal terms. I have also spoken to guys with Tullow and Ophir in Kenya and the working environment there isn't the best, more due to security issues and concerns. Most Co's involved in exploration have pulled most of their locally based expat staff out and are running their drilling programs "remotely".
There is a "nationalistic" undertone to a lot of the issues between foreign operators and the respective national Govts. The Govts. are obviously happy for the foreign oilers to come in and spend the bucks finding it, but once discoveries are made and reserves booked, then it becomes a case of "what's yours is ours" and then the squabbles start on how it is to be exploited and who gets what.
Hopefully the Sen Govt. keeps a level head and sticks with the existing PSC terms and don't start trying on the retrospective revenue grabs because this will only bring cause problems for commercialising the find.
FAR Price at posting:
7.8¢ Sentiment: Buy Disclosure: Held
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