"Under the terms of the RSC, the Contractor is the service provider and Operator of the field, while Petronas is the resource owner. Upfront investment of capital is contributed by the Contractor, with the Contractor compensated via the reimbursement of costs plus a remuneration fee for services rendered. The remuneration fee is linked to production volume and capital cost key performance indicators."
What remains to be seen are the $ figures. The substantial capital cost reductions should benefit OXX to the tune of "a lot of money". Increased reserves will do likewise. The experience to be gleaned from this project will be of tremendous benefit to OXX as it progresses down the path of now being a producer.
OXX Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
