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SBL your maths is OK but numbers to be used will need to be...

  1. 408 Posts.

    SBL your maths is OK but numbers to be used will need to be decided by the court. There is considerable doubt in what I have seen disclosed:
    A 2001 contract for 25 years although gas deliveries began in 2005. Is that 44% gone or 80% left? What is remaining of 700PJ (or is that ~80TJ per day)? The plant is still receiving gas despite past exploration for gas by the HJV being less than brilliantly successful so that the HJV may run out.

    If HJV had to buy on market yes it would be very expensive but reality is that it will be future gas production at a discounted price as each of the partners separately has plenty of gas ? just not necessarily in the HJV.
    Worst case scenario is that Harriet partners have to supply the gas at the contracted price.

    Even in 2001 it would be an absurdly dopey contract that continued with less than $2M per PJ for 25years (after the plant was able to take delivery in 2005) when the international price at the time was probably over $5M/PJ. Not even Burrup could be that naive or conversely Apache legal advisors that dopey or the HJV that desperate to not leave the gas in the ground. I?ll stick with my belief that the horrendously "aggrieved" party Oswal was a rich bully just using the courts to help his negotiation.
    On your thoughts of settling out of court: You have to be kidding. Bring it on, see through the day in court ? it is only a contract clarification that is being decided here.

    Just jumping at shadows people.
 
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