Hate to be the bearer of bad news, but Petronas owns the oil....

Hate to be the bearer of bad news, but Petronas owns the oil. Ophir Production as operator is paid to extract the oil. The Risk Service Contract (RSC) pays the operator according to whether they meet performance standards. Without seeing the contract, it is hard to comment, but you would think standards such as meeting the capex budget with bonuses for going under budget, interest for the use of the capex, meeting time lines such as first oil, oil production levels as per projections, etc with all standards having bonuses for exceeding forecasts. RSCs have all capital and operating expenditures repaid to the operator. The rate of return to the operator can vary as you need to see the contract and the final return will only be apparent after the contract finishes and all bonuses are paid. Will Ophir Production reveal the contract terms? I think not as it is commercial in confidence.

This single project is just the beginning of a rejuvenated life for OXX as it moves from being an explorer to an explorer, producer and developer. Real income will commence to flow.