news and pipeline approval News timing is highly dependent on local issues:
Any PR has to be approved by the partners. Notice they always start with something like "Mart and its co-venturers..."
Once that is done after a couple of back and forth the co-venturers (not Mart) has to get it approved by the Nigerian government if it contains flow rate or production numbers. If any changes the cycle starts again.
That is my understanding of the rules. It is what it is and we cannot change it.
Pipeline approval:
The pipeline approval is an interesting case study. The following was obtained from public documents:
The Trans forecados pipeline is part of the OML 30 license and is own 55% by the Government oil company NPDC and by a joint venture between Heritage and Shoreline. Heritage owns 45% of the join venture.
https://www.heritageoilplc.com/presentations_investors.cfm
See page 20 for structure
See page 23 for decision process.
The oil is sold by Heritage to Shell under the same type of contract that Mart has with Shell. (page 23)
NPDC covers 5 states including the "Delta State" . The Delta State government owns part of Mid Western Mart's partner. Talk about a small world.
All of that setup to say the following:
Timing is out of Mart's control
Shell is not the only one involved except for the "crude purchase agreement" already signed.
Heritage is not the only one involved
Everything needs to be reviewed by the the OML30 technical group and by the NPDC
This is all very bureaucratic and takes a lot of time. Considering the local Delta government is involved as a beneficiary it is not a problem and that is why they are starting on the pipeline.
I hope that helps understand the situation.