RE:RE:Pipeline cost per barrelIf that $15/bbl were AOI's all-in pipeline cost, that's not bad. I suspect it will be more. First, they'd have to find someone to build what will quite possibly be a $5b pipeline. What guarantees would the pipeline-builder get from the Kenyan government, and how much would those guarantees be worth?
$15 pipeline cost would make for at least $20 total opex. If the Kenyan government were to take a $10 royalty off the top of, say, $60 oil, then operating profit would be $30. Give the Kenyans at least half of that, then pay tax on the remainder, and AOI might be left with $10, which is certainly more than enough.
Of course, that's assuming a bunch of things happen that don't seem to be happening at the moment.