“TotalEnergies and Apache’s hesitancy is understandable when it is considered that it will take around $10 billion to develop Block 58 and capitalize on the considerable oil potential the block holds.” At Oilprice.com
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And if they decide not to fund? What’s our exposure?
Crickets from TE......
Hard for Apa to come up with all that cash, although TE would be the one spending it first.
I can imagine hesitancy on behalf of Total given the extensive range of projects on their books, but no doubt APA would be keen to be seen to be moving this forward since it’s the only thing in the entire portfolio that could potentially dig the esteemed management team out of the ho-e their ineptitude has dug.
"TotalEnergies and Apache’s hesitancy is understandable when it is considered that it will take around $10 billion to develop Block 58 and capitalize on the considerable oil potential the block holds. This is further complicated by conflicting geology and the production sharing contract secured with Suriname’s government in Paramaribo not being as favorable as that obtained by Exxon in neighboring Guyana for the Stabroek Block. Indeed, it is estimated that operations on Block 58 will have a breakeven price of $45 per barrel Brent, which is significantly higher than the $25 to $35 per barrel reported for the Stabroek Block."