Thanks for your assessment. I suppose this deal is in line with prices that Qatar has negotiated for other contracts recently, this is from Q3 20:
So based on my admittedly limited understanding and your comment on prevailing market conditions, our negotiated price more or less matches the above examples at 10.2% of Brent. So it's good, but perhaps not at any extra-ordinary discount? As for the previous deal, I'm unable to find any reliable estimate for the going price for 15 years at that time, nor am I able to wrap my head around the price difference then vs now and the difference in tenure.
@niaz @farok84 @Turingsage Gentlemen, if you'll indulge me for a moment with a question or two. Since these are long term contracts, how does the price (as a % of Brent) change with term of the contract (10yr vs 15yr etc.), is it higher for a longer contract due to more price risk in the long term? And since these prices are being quoted as a % of Brent, how much of a difference are we talking about in relative terms between a deal today at a price of 10.2% of Brent vs 13.37% of Brent at the start of 2016?
The second question is a little tricky, I mean to judge exactly how much better this deal is than what we had previously, while factoring for changes in energy prices between then and now, to judge if this deal is an example of better negotiation rather than just prevailing market conditions.