InterOil is likely to be at the center of things..
To refresh memories, Petromin is the PNG public company that partners with IOC in developing their resources
Petromin signs shipping deal
Petromin PNG Holdings Limited yesterday entered into a co-operative development agreement (CDA) with two international partners to investigate the prospects of introducing LNG Floating Production Storage and Offloading (FPSO) technology to Papua New Guinea.
The partners are DSME E&R (ENR), a subsidiary of Daewoo Shipbuilding and Marine Engineering (DSME) of South Korea, and Höegh LNG of Norway (HLNG).
Both companies have worked on the shipping and processing components of the LNG FPSO technology respectively, and the technology is ready for immediate implementation.
In a joint statement the managing director of Petromin Joshua Kalinoe, the chief executive officer of DSME E&R MJin Seok Kim, and board director of Höegh LNG Andrew Jamieson, said the CDA provided for a tripartite partnership among the companies to carry out a joint study to determine the technical and economic viability of developing the gas reserves of Papua New Guinea using LNG FPSO technology.
“We have agreed to work together by entering into a cooperative development agreement signed today (Tuesday), to introduce the technology to Papua New Guinea. We have commenced an economic and technical feasibility study in order to provide a competitive option to any gas owners in the Gulf of Papua, including the ELK/Antelope LNG project,” they said.
HLNG and DSME have over several years developed LNG FPSO technology.
The vessel and the processing systems will be constructed at the DSME ship yard in South Korea; first cargo is anticipated for mid to late 2014 if a final investment decision is made by December 31 this year.
The processing facility, which would be capable of producing up to three million tons of LNG annually, will be located in the Gulf of Papua in the Gulf Province.
During infrastructure construction, significant employment opportunities will be created: the operation phase will employ about 300 people.
The parties will jointly operate the LNG FPSO facilities under the leadership of HLNG and ENR, where Papua New Guineans will be trained to operate the systems and processes of both the ship and the processing facilities.
Petromin, Mitsui sign deal to develop local gas sector
Papua New Guinea’s national oil, gas and minerals company, Petromin PNG Holdings Limited, has signed an agreement on Friday in Port Moresby with Mitsui & Co Ltd, Japan’s major trading company.
The agreement means both companies will jointly undertake feasibility studies designed to identify and establish new PNG businesses based on the country’s gas resources. Petromin managing director Joshua Kalinoe and Shintaro Ambe, managing officer of Mitsui’s Infrastructure Projects Business Unit, said in a joint statement that Petromin and Mitsui want to see downstream businesses established which will create long term employment opportunities for Papua New Guineans.
PETROMIN PNG Holdings Ltd yesterday presented to its major stakeholders the concept of having an offshore processing plant designed to greatly reduce the time and money spent on onshore pipeline laying and other concerns.
Managing director Joshua Kalinoe said the liquefied natural gas (LNG) floating production storage and offloading (FPSO) exercise would be the fastest means of commercialising the gas resources in PNG, especially for gas fields within the ocean’s proximity, with long-distance pipeline options to the onshore processing facilities.
He said from the co-operative development agreement signed by Petromin and its international partners DSME South Korea and Hoegh LNG Norway on Tuesday, economic and technical feasibility studies would continue to provide a competitive option to gas owners in the Gulf of Papua, including the ELK/Antelope LNG project.
Kalinoe said this would provide an alternative to gas owners and operators in the country to save time and money by having an offshore processing facility nearby, rather than through hundreds of kilometers of pipelines.
The LNG FPSO technology will feature an offshore facility vessel that will be built by DSME, and will be able to store, process and prepare gas for export.
The processing facility is projected to be capable of producing up to three million tonnes of LNG annually.
Kalinoe said if everything went according to plan, the final investment decision should be made by Dec 31 to allow for the construction of the vessel to begin by next February and first cargo anticipated for late 2014.
He said the technology also had the advantage of early monetisation of gas reserves when compared to conventional onshore LNG facilities and the training of many Papua New Guineans.
He said the partnership with DMSE and Hoegh LNG would allow Petromin to fulfil its mandate as the national oil, gas and minerals company to join and deliver the first LNG FPSO facility in PNG.
Petromin Congratulates Interoil & Mitsui Corporation
The Managing Director and CEO of Petromin, Mr. Joshua Kalinoe has congratulated InterOil and Mitsui Corporation for entering into a Preliminary Commitment Agreement for developing phase one of the Elk/Antelope LNG project, subject to final ratifications.
Phase one of the project includes the extraction of condensate and development of upstream LNG extraction facilities.
Mr. Kalinoe made these remarks on the occasion of the signing ceremony in Tokyo of the Commitment Agreement between InterOil and Mitsui in front of the Prime Minister, Grand Chief Sir Michael Somare on Tuesday 30th March, 2010.
InterOil is the upstream operator for the Elk/Antelope LNG project and Mitsui Corporation is one of the leading Japanese investment and trading companies.
The Preliminary Commitment Agreement allows Mitsui to fund 100 percent cost of the Condensate Stripping Facilities (CSF) which includes a liquid separation plant and pipeline in the project area, and earn tolling fees and various other benefits. Mr. Kalinoe said, under the arrangement Mitsui will also fund Petromin’s share of the condensate extraction costs. This means that Petromin and the State will not have to seek separate financing arrangements to fund their share of the equity.
Mr. Kalinoe said that it is one of the best project financing deals for the current partners in the project which includes Petromin, InterOil and Pacific LNG. It also means that early revenue for Petromin and the State from the Condensate Stripping component of Elk/Antelope LNG project where first cargo of condensate is expected by the second half of 2012.
Under the arrangements Mitsui will co-build the extraction facilities and will receive toll fee as well as financing cost from condensate revenue at first production of condensate. The condensate will be sold on a net back basis to the InterOil refinery in Port Moresby at international market and local PNG market prices.
Mr. Kalinoe said this arrangement adds more value to Papua New Guinea than any other projects where all the LNG products are sold overseas.