Another good headline With thanks to PrepH on the Forum:[link]
Re: Estimate of Benefits to Saudi from M... B61,Thanks for clarifying, just in case anyone misunderstands.My point, of course, is with such a huge potential benefit to Aramco and the Kingdom, there is no way, IMO, that they can avoid going commercial with MSAR.And where KSA goes others will follow.TH2
Re: Estimate of Benefits to Saudi from M... Thanks TH2.Only thing I should add is that the value I quoted below is not the basis for any revenue QFI will receive, just an estimate of magnitude of benefit to Saudi. The previous forum posts docontain some QFI revenue estimates if that is what you are after though.B61
Re: Estimate of Benefits to Saudi from MSAR ... Thank for posting this Chris. So the measly $10m spent should be seen as buying a seat at the table which can grow to an annual return of $17bn.Next time the Private Fraser's arrive on the BBs crying 'we're doomed Capt. Mannering, doomed', just refer them to Burble's considered figures and ask them what they would do in Aramco's shoes.TH2
Estimate of Benefits to Saudi from MSAR adoption Members of the shareholders forum might recall I posted an estimate of the level of benefit that might accrue to Saudi (both to entities in the supply chain and to Saudi national finances).I was asked to estimate what a short term realistic benefit might be, so have just posted that.Short answer is in the region of $13Bn-$21Bn annually in the short to medium term, (midpoint $17Bn) with more likelihood to the upside given the assumptions and estimates I used in the absence of certain hard data points.Longer story on the forum. More thoughts on numbers to follow.RegardsB61
Reositive Industry Coverage Great that the headline was the "Fuel production system commissioned in Saudi Arabia " with the signage of documents delay taking 2nd billing!
Industry Coverage [link] news is good news, as they say.TH2
Re: No MMU? H..2016 "no idea what on earth an MMU is"Within this context I thought I knew what an 'MMU' is but now I'm not so sure.......can someone put me right !Thanks in anticipation guys. eyeson
Re: No MMU? Perhaps because it's not their MMU or novel system. So they can't announce something they don't own. Instead they must wait until the owner - their client - makes their own announcement. If I help my neighbour fit a new bathroom shall I announce it to his family? That timing could be very different and depend on financial, political, etc. etc. concerns of the client. The client might not want to announce only one piece, "hey folks we have an MMU!!!!" when their customers, clients, relationships may have no idea what on earth an MMU is.And so on.
Re: No MMU? Yes, I do understand and accept all of those points.I still think that the notion that the BoD cannot state whether MMUs or a novel system has been installed is daft (and also an assumption - perhaps they can, but haven't, and if so, why?)
Re: No MMU? Freedom-thirty5You know what an NDA isYou know how secretive KSA isYou have been told that we have a tripartite and multiple other biparty agreements to negotiate and complete.Loose lips sink ships! Been travelling this morning just catching up with this cracking confirmatory RNSGLAH
Re: No MMU? I share your view TH2.What I don't understand is why the QFI board have not made this point clear. For goodness sake, does everything have to be a secret? Why must the company we collectively own treat us as if we are "the enemy"?
Re: No MMU? I think there maybe some overthinking going on here. We know that the most important aspect of the burner trial has to be to deliver MSAR 100% to spec and 100% reliably, so I think it highly unlikely that we would experiment with a outsourced manufacturing unit during such a critical phase.MMUs do not have to shut in their standard sized containers, and there is no reason that multiple units cannot be stacked together inside a larger building. ENH's balance sheet shows cash that could be up to three MMU's (It had to come from somewhere) so I still believe that this 'Fuel system' referred to is a plumbed in fully operational MMU(s) plus ancillary equipment.Long term it is entirely possible thing may evolve into bespoke MMUs , but does that even matter? So long as the stuff gets made, and we collect our fees, that will be a very good result.Incidentally, I do not believe anyone would be so foolish as to install only one large unit, as that would leave the refinery vulnerable to breakdowns, let alone the need for maintenance. So even if very large units were eventually used a backup unit would always be required. Think power generation, it's the same principle.TH2
Re: Now We've Gone Blue 46G - I take your point and indeed used to think like this, but seeing as my last top up was at 12p, that's a considerable percentage away from here so I've been trying to be a bit more discriminatory re my buy in points. But hopefully you're right and that once this Saudi pilot is properly signed off, we'll be up like a rocket.
Re: No MMU? Would they have been that confident to go that far prior to the planned combustion boiler trial?