Financial ImpactIf the 12.5% rate sought by landowners were enacted, it would reduce NPV by ~30%, reduce SWA Stage 1 cash flows, and require additional financing buffer for the Stage 2 expansion.
Funding ChallengesEquinor's full funding is expected to run out over the next quarter, requiring SLI to start making its share of capital contributions.
Royalty RatesLandowners are seeking a 12.5% royalty rate, which would strain project cash flows.