Q: Mart is looking weak here again, I'm assuming due to the uncertainty of finishing the pipeline and the large shrinkage losses in the existing one.
My question is regarding the new pipeline: I can't seem to find anywhere an agreement with Shell or another party that Mart has signed which will guarantee them a market for all the oil they hope to ship in the new pipeline, and under what terms. I may have missed this, but if not what is the risk that they cannot reach favorable terms with their new pipeline (once operational)? I guess the question is - once the pipeline is finally finished and commissioned, can the upside be quantified, and is it at a valuation well above where the company is now? Or is there also risk of a new pipeline agreement dragging out and not being favorable to Mart?
My question is regarding the new pipeline: I can't seem to find anywhere an agreement with Shell or another party that Mart has signed which will guarantee them a market for all the oil they hope to ship in the new pipeline, and under what terms. I may have missed this, but if not what is the risk that they cannot reach favorable terms with their new pipeline (once operational)? I guess the question is - once the pipeline is finally finished and commissioned, can the upside be quantified, and is it at a valuation well above where the company is now? Or is there also risk of a new pipeline agreement dragging out and not being favorable to Mart?