Well I suppose that is OK if Shell want to be in the position of a passive processor of the gas.
Shell would be entering supply agreements with customers which require field development by AOE to match including the upfront expenditure. Shell would put its reputation on the line in the supply but Shell could not control the majority partner on the gas production side.
Secondly, the pricing arrangements between AOE and Shell would be complex given the varisbles involved.
I think Shell would want a KISS solution.
AOE Price at posting:
$2.65 Sentiment: Hold Disclosure: Held
