ERHC Energy Inc (ERHE)

[midtieroil]

The only oil that SNP "owns" is that which is their share of production. They can sell that to whomever they please. Similarly, the other joint venture partners have the right to take their oil in kind as does the JDA itself. It is not atutomatically put on Chinese tankers as you imply.

And I'll stand by my contention that at current prices deepwater gas-only projects where no infrastructure already exists will not be produced. Associated gas projects where you can use the oil to help pay the way for gas production are viable. Get up around $10 per MCF for gas and maybe the economics are different. But even at that price, people weren't doing that type of project. The cost to build a pipeline is prohibitive, the cost of drilling in deepwater is prohibitive and the cost of floating LNG facilities are prohibitive too.

I'm not saying all the gas will be flared. It will either be reinjected to help oil projection or it will be left undrilled until the economics are more favorable than they are today. And many deepwater gas only fields may never be produced.