“We understand the intent of this language, of the whole contract, because we wrote it,” Chapman said, as the clinking of diners’ plates fell silent. “Most observers in this industry would understand our reputation for rigor, attention to detail in contract language. I mean, it’s a brand we have as a company.”
After you got your a**es kicked Neil and Darren, what’s your brand now?
It will not take 50 pages. Future JOA simply needs to say any asset transfer requires written approval of all coventurers. Delete 10 pages on transfer and preemption rights and change of control language. pre-emption rights make marketing an asset more difficult so it is a 2 edged sword when field depletes. The exemption to allow transfers to affilates was set up to allow internal restructuring. Like setting up a new affiliate between Exxon Mobil corp and a country affiliate. These free transfers to affiliates allows easier financing and loan encumberances and corporate restructuring. Since XOM rarely uses project finance, loan encumberances are rare, small companies need this clause. But since XOM has a great balance sheet then there is little value in these. It simply means XOM will have fewer companies (like mid -sized independent O&G) that can partner with XOM and future partners will need to be big with great balance sheets or NOCs.
They are the smartest in the industry Darren earns $40 M per year And Other SVP earn $25M. You are the id--t...
Why did we include it in Guyana? Remember this is way before we ever knew anything was there. So what language would we have added and for what reason that was different than everywhere else?
One more validation of how un-special the gross POS clowns making up our executive ranks actually are. Most are literally this d-mb and arrogant. Try talking to one and you quickly find out how dull these sad sacks actually are, yet seem to think they’re clever, simply by being lucky enough to land in the right bank account for reasons far out of their control. Incompetent aT anything other than sunflowering, blustering and bullying in the most cowardly ways imaginable. So much winning
Typical Exxon arrogance
The language about right of first refusal due to takeover or merger of one of the partners was very descriptive in every way. Air tight.
The arbitration team just simply denied the wording was valid because no future merger of any oil company would ever be possible if the language was allowed to be enforced.
I just love the fact that we thought we were smarter than everyone else and got f’d.
Just means all future contracts will have an extra 50 pages to address whatever the issue was with this one.