Ann: Half-Year 2018 Results and Briefing Pack, page-2

While I have not yet done all my reading and research into the WPL result, I did pick up some snippets from the AFR yesterday. 

We all know about Pluto 2nd train, with Scarborough feeding it and plans for Browse feeding into the NWS. What is currently at risk is SNE. Here is what PC said 

"The arbitration is frivolous. It has no basis orsubstance. It is driven by commercial opportunism and it raises concerns in ourminds about the ability of our partners to fund (their share) given that it isclearly a blocker for the financing of our project," Coleman said.

Woodside is presently shopping for project financing for the$US3 billion plus development. Coleman asserted that it was "clear tous" that while the arbitration remains live, securing finance andinfrastructure leasing terms will be "difficult".

 

"The whole thing is nonsensical and ridiculous," hecontinued, noting that the arbitration process looked almost certain to extendbeyond next year's deadline to provide the Senegal government with some levelof certainty over the shape and timing of the project.

 

Woodside's best guess is that, should it proceed to itsendgame, FAR's arbitration would not conclude until 2020. "That is beyondthe point where we need to make a decision," Coleman said.

 

"We have rights under our title," he continued."We will exercise those rights, we will make sure we protect Woodside'sinterests with respect to security over the title and the implications of that,our other partners will have to consider," he warned.

Coleman didn't want to enlighten me as to what those rightsmight be but his intent is clear.

 

And here is what I think he is saying. The SNE joint ventureinvests considerable authority in its operating partner and by the timedecisions are made, that is what Woodside will be. That authority most likelyextends to the timing of an investment decision and how the project might befunded.

 

Coleman is plainly saying project financing has been leftuncertain. If that is unattainable, then the only obvious way for this to getdone in the timeframe required by Senegal is for the partners to do itthemselves by contributing capital in line with their level of ownership.

 

It is plain enough that Woodside could afford its share andso too could the other big owner, Cairn Energy. But, very obviously, Colemanreckons FAR would struggle to respond to that sort of capital call and, just asbluntly, he is making it publicly known that he is prepared to throw down thatgauntlet."

So, if what is being reported is true, then FAR will need to be careful. It seems that WPL will not be hindered in it's resolve to pursue development.

HT1