RE:RE:RE:RE:RE:RE:RE:Zacks says sell Cenovus... i only brought up liwan gas dispute to highlight the risk of operating assets in a corrupt country. The other corrupt country (with even more primitive business ethic) is indonsia, where husky has 40% in the Madura gas field, not offshore malaysia. Husky originally has 50% together with Exxon Mobil 50%. The corruption is too much to bare even for the oil giant so ExxonMobil want out and sold it to husky for cheap. So husky end up with 100% in the entire Madura project. Husky knew it can't make progress with a corrupt gov't of indonesia, so husky offered cnooc a sweet deal to come in. Husky believe china is a better expert in dirty dealing and can better man handle INA gov'ts plus husky want to stay clean and let cnooc deal with INA insiders. In the end, both husky and cnooc have to chip in 10% each to the corrupt INA ministers to order to grease the wheel of motion. Of course the public news and indonesian people cheered Samudra Energy participate 20% in madura gas field, even tho it is mostly own by INA cronies. You won't read this from any news article. I just want to let the west know how corrupt business deal is in a dictatorship/communism system.
Here is an example of gas contract from Madura Gas field. Husky signed it in 2007, and first gas was in 2017, ten years after a gas contract is signed, and for a 20 year contract term. This again show that a gas contract doesn't get re-negotiated for a longer term as proclaimed by RagingRabies, especially only after 2 years of production at liwan. These production rates are small, meaning lots of development left to do and it move very slow in corrupt country if you don't grease enough wheels. ExxonMobil saw this right through and I don't blame them for exiting madura.
Gas sales agreements for the Indonesian offshore field
Three gas sales agreements were finalised with PT Parna Raya, PT Inti Alasindo Energy and PT Perusahaan Gas Negara Tbk (PGN) in October 2007. The former two will purchase 40MMscfd of gas from the project, while the latter will purchase 20MMscfd of gas, including an additional 10MMscfd of gas on a reasonable efforts basis. The contract period for all the three is 20 years, effective from the start of first gas flow from the project.
2019 projection to 2020-2021 production but i see none yet
autofocus111 wrote: mrbb They came to what I consider was a reasonable compromise in a highly uncertain situation. I don't condone what CNNOC did, just highlighting for those CVE shareholders who don't know HSE's history there what led to the dispute. HSE also has projects off the coast of Malaysia. Their Asian assets are close to the growth. That is enough incentive to hold onto this asset base IMO.