I've noticed most of these contracts give the "operator" 70% of the revenues as they also pay for the expenses. And investment to get this project going. 3.5 billion for a platform over years is no small task or expense.
The malampaya field is public knowledge where the operator for 70% , the consortium got 90% of the 30% left over,which they split 45% each and the ph govt got 10%
They revised their constitution so the ph govt would only do deals of them getting a 60/40 split of which I believe is after the "operator". I guess the operator could be the owner of the concession themselves or a partner that is brought on later. They partner that bares the expense of the project.
Where it is still left unclear is if china is looking for a 50/50 split, which is not allowed between governments within its current constitution of the philipines, or if they will actually have cnooc be the "operator" in which they will give them 70% (probably) of the field appeasing both sides. And maybe promising cnooc ( the state owned/run corp of China) to get preferential splits on all disputed wells.
Another version would be that they bring in another partner to be the operator which will then reduce the amount of profits left over by a huge amount.
Also I don't know if that 70% for an operator is the industry standard or not.
What is certain is that it will be a creative contract where the variable can be very different to appease almost everybody and to get it finally done. After all, 100% of nothing is nothing when we had a contract under moratorium.
It's best to just wait and see before juggling new Myers around, bit of you really want to entertain yourself with that thought, the key question is if cnooc is the "operator" or just an added partner to add to the split of the profits by another 50% after the operator takes their 70%?
Yes. Let us all pray that it's 20tcf to come close to the percentage returns we were dreaming about.
