PSA signature by government sets the legal and fiscal framework for the project and basically gives it the all clear to go ahead.
It is Massive de-risking news, likely to be announced in the next week.
I am 100% certain that there are many sophisticated investors that wouldn't touch IVZ without the PSA signed - due to the sovereign risks.
The Product Sharing Agreement (PSA), contains the Government's profit/product share in the project - plus other important legal items too.
We couldn't possibly be drilling for gas without this legal document signed. Otherwise any gas found would be stuck in limbo until an agreement is made with the government (very high risk move).
It is hard to proceed with this project without first having a signed PSA from the government with crystal clear terms and conditions.
This will also need to be known before any farm-in partner can join.
Its bigger news than you think.
Summary of Invictus Energy, page-115
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