All you brilliant engineers - how many years using the COP price deck does it take for Surmont to payout?
Use discounted payback ;)
When do you consider sunk capital and make the smart choice to walk away vs. keep throwing money into this asset
4 replies (most recent on top)
Less than what a COP corp bond goes for
sunk capital - its just bad business now
But it would be embarrassing to get rid of this as it makes the ELT look bad.
We just spend XX billions and sold it at a loss in less than 2 years? And it's the reason why we are in this mess
You know that Surmont will be sold once a buyer antes up. When the smart guys let their Wellview and Spotifre support and smartest guy they have come to our company the writing is on the wall. We welcome you here to our world and a better office.
Staged sale of Surmont once the stock market bump ends from these last sales. God Speed KD, God Speed......
But the supreme leadership wants Canada for all the wonderful debottlenecking/ expansion opportunities (or whatever they are trying to sell it as these days); because of course the first couple went so well.
Maybe some brilliant finance folk can let us know when the company is going to move all the spent Surmont3 capital from the 'Assets Under Construction' category to 'dry hole expense' and what the impact will be.