Why Far is Undervalued., page-36

"Does anyone seriously think the likes of CNOOC and Total will allow Woodside to take out a PE-swollen FAR? I wouldn't think so.

And would Senegal want to trust Woodside to develop the jewel in its crown? Again, I wouldn't think so."

Morning OOO the problem CNOOC ,TOTAL or other Majors have is there is no guarantee PE will succeed and FAR's small current WI doesn't move the needle in terms of adding reserves for those behemouths, whereas WPL not only resolve the PE Issue with a TO but would end up with 50% less a Petrosen back in...

IMO CNOOC would still retain the AMI and a JV in A2 (should that happen) as it would come with FAR in any TO from WPL.

FAR and CNE have no issues with WPL as a partner / operator (FAR’s beef is about the process ) and I doubt the Govt will either , it's a JV issue and I doubt the Govt have a lot of say legally, after all untill we hear otherwise from arbitration, WPL is a participating partner now and has the option to become operator , the JV is going about its business and I believe WPL are keen to fast track the project...

In Short I doubt there would be a bidding war for FAR if WPL made a good offer, a low ball offer would be turned down anyway...

I'm not expecting a TO anyway but it would certainly remove the doubt about arbitration from WPL,s perspective so certainly can't be discounted...


Cheers Whisky