FPF variables... The modification and upgrade of the FPF-1 floating production facility that is to be used for the offshore processing and export of hydrocarbons is being performed by Petrofac, a leading international service provider to the oil and gas industry. The contract for the modification of the FPF-1 for deployment on the Greater Stella Area production hub was awarded to Petrofac in October 2011.
The contract provides for the required works to be performed on a lump sum contract value basis, supported by vessel performance incentivisation mechanisms. This contracting strategy was employed in order to de-risk the FPF-1 related development capital expenditure and the ultimate operational "uptime" of the fields, with the latter being further supported by Petrofac’s equity interest in the Greater Stella Area fields. A contract has also been entered into with Petrofac for the provision of dutyholder services during the operational phase of the fields, under incentivised cost and uptime performance terms.
GG - The LONGER is takes PFC to get FPF-1 in the water, the THINNER their margin of profit. They don't like this LUMP SUM deal, and know that IAE made a smart move in this regard. And with OIL profits in half, they are even more ticked. This is BUSI NESS 101. They are locked in to it and will do whatever is needed on THEIR part to profit. If IAE has to suffer with a delay, so be it.
I'm starting to see the bigger picture here now. PETROFAC mislead IAE as to sail away schedule for their own purposes, imho. We as small investors get caught in the riptide. That said, the GEKKO should have known that if it took this long to get to 75%, the next 25 would take more that Spring 2015...
I for one, just like Warren buffet, will be there when STELLA oil flows or IAE gets a BUYOUT offer. OPTIONS - They could MERGE with another player, they could decide to SELL the company. They have a TON of $$$ tied up in the FPF as well as all their assets.
It's a game changer, but the game has been extended. Not costing IAE a ton in the greater scope. They are WAY better off than most in the NS. Look at Enquest, doing 28K per day and the stock is in the tank...
Time for Gekko to go RIP VAN WINKLE again.
Naka . . Is the Well #5 still BUILT IN at this level?
Maybe we just need CRAFTYer investors!
Best GG
PS - Don't let it get you down. Things could be worse. We just lost SPOCK!