Académique Documents
Professionnel Documents
Culture Documents
Peter Godfrey
Vice-President Commercial
CBM Operating
Companies / Investors
Return on Investment
Shareholder Value
Track record
Reputation
Competitive forces
- RISKS:
- RESERVES UNCERTAIN
- RESERVES STRANDED / REMOTE AREAS
- TECHNICAL DEVELOPMENT
- DIFFERENT LIFE CYCLE TO TRADITIONAL NATURAL GAS
- UNCERTAIN CAPITAL AND DEVELOPMENT COSTS
- INFRASTRUCTURE LACKING
- MARKET UNDEVELOPED
3. GOVERNMENT PROMOTION
- TO ATTRACT IN BEST PRACTICE TECHNOLOGY
PROVIDERS / INVESTORS
4. IDENTIFY AND WHERE POSSIBLE ASSIST IN DEVELOPMENT OF
THE MARKET, THE INFRASTUCTURE NEEDED AND ECONOMICALLY
SUSTAINABLE GAS PRICES
MARKET OPTIONS:
e.g.
- ELECTRICITY GENERATION
- SUPPORTING MINE OPERATIONS
- SALES TO THE POWER GRID
- SUPPLY TO NAT GAS PIPELINE SYSTEM
- RAW MATERIAL FOR FERTILISER, METHANOL ETC
- MOTOR FUEL (CNG/GTL)
CBM
Government Take
IPA Recommendations
REGULATORY
REGULATORY
Streamline bureaucracy
DEVELOPMENT
DEVELOPMENT
Fallow discoveries
EXPLORATION
EXPLORATION
Tender Procedures
Bid Evaluation Criteria
Procurement regulations
Health, Safety, Environment & Security issues
Gas Markets and Prices
Government must value the development of a new energy
resource and environmental benefits etc.
Canada
China
India
Indonesia
USA
R/T
R/T
PSC
PSC
PSC
R/T
Individuals
Gov't and
individuals
CUCBM
mandatory foreign
co'y countrparty
Gov't sole
owner
Gov't and
individuals
Yes
Yes
Yes
Yes(3)
25%, or 100% of
no discovery
Yes
Signature Bonuses
0.00%
0.00%
Yes
Yes, $0.3m
0.00%
Production Bonuses
n/a
n/a
n/a
n/a
n/a
10.00%
Sliding scale,
based on type
of gas
10.00%
0.00%
12.50%
0.00%
0.00%
0.00%
0.00%
10.00%
0.00%
100.00%
100.00%
60.00%
100.00%
80%(1)
AMT
0-2.5%
Federal
Royalties
0.00%
0.00%
0.00%
0.00%
10.00%
Yes
10.00%
Yes
0.00%
Yes
40-50%
40-50%
38-41%
30-42%
30-33%
42-53%
30.00%
Federal Tax,
21%
30.00%
50.00%
44.00%
Federal Tax,
25-35%
0.00%
State Taxes
12%
Yes, as applicable
Yes, as
applicable
0.00%
State Taxes
5-10%
First call
local use
Yes(2)
0.00%
0.00%
51.00%
30% Back-in
50% in JOA's
0.00%
Title to CBM
Relinquishment
Royalty
First Tranche Petroleum
Cost Recovery Limit