RE:RE:RE:Liberty 55 QuestionsIn my last post I indicated that I would look into the IRR for the $1.9B that COS spent to upgrade the facility.
My starting assumption is that production was running at 100 kb/d to COS (272 kb/d Syncrude) as suggested by L55 and the SCO price was $85. I would then increase production to 115 kb/d (313 kb/d Syncrude) and calculate what SCO price was required to get an IRR of 10%.
The incremental revenue required was $210M annually for 25 years. What surprised me was that the required SCO price was $85. Pure fluke. Maybe this answers L55s' question. Raising the SCO price to $95/bbl returns the $19B investment in 5.5 years.
Lets hope that we return to $95 SCO and more than 315 kb/d.
Namsoc