Home › Forums › InterOil Forum › 'Known Players in the Running'
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| February 3, 2012 at 9:49 pm #7121 | |
 Tree | High interest = High investment. And just how big is T-2? ********** Known players in the running: InterOil Friday, 3 February 2012 INTEROIL has revealed it is in talks with “several internationally recognised” LNG operators to partner into the Gulf LNG project in Papua New Guinea while its Triceratops-2 well in Gulf Province was at a depth of 516m yesterday. In a presentation at the IPAA Oil & Gas Investment Symposia in Florida, InterOil capital markets vice-president Wayne Andrews said the ongoing negotiations involved a sale of its interest in the Elk and Antelope fields (InterOil 58.6%) and participation in its exploration tenements. The hunt for a suitable world-class operator for the Gulf LNG project was started in October on the back of criticism from PNG’s Petroleum and Energy Minister William Duma. Andrews said the investment banks of Morgan Stanley, Macquarie and UBS were still retained as joint financial advisors to evaluate proposals from potential strategic partners. Royal Dutch Shell could be in the running, as the oil major struck a strategic partnership with PNG government-owned Gulf LNG joint venture partner Petromin last year. Meanwhile, the T-2 well has a total planned depth of 2310m and penetration of the top limestone target is estimated to take place around a depth of 1320m. The well, like the other Elk-Antelope discoveries, is targeting a reefal carbonate reservoir. InterOil also flagged a possible follow-up well, Triceratops-3, for this year. Meanwhile, InterOil aims to reach the financial investment decision milestone for the various onshore and floating LNG components of the Gulf LNG project and for the condensate stripping plant project with Japanese conglomerate Mitsui, by March 31. The Gulf LNG project is targeting 5 million tonnes per annum in 2014, with 3Mtpa from an onshore modular LNG plant and the rest from the FLNG facility. There is also a proposed ramp-up to hit up to 8Mtpa from the total project through 2015 and 2016. Gas for the project will be supplied from InterOil’s Elk-Antelope field in Gulf province. At the end of 2010, the Elk-Antelope structure was estimated to hold 6.47 trillion cubic feet of initial recoverable sales gas in the low case forecast by GLJ Petroleum Consultants. But a discovery at T-2 would further support InterOil’s LNG plans. |
| February 4, 2012 at 10:43 am #7123 | |
 Libtardius Maximus | Thanks Tree, is there a link to this article? |
| February 4, 2012 at 11:23 am #7124 | |
 petrengr1 | Lib- See if this will work: |
| February 7, 2012 at 11:42 am #7242 | |
| Tree | Guess Wayne wasn’t lying this time. |
| February 7, 2012 at 12:38 pm #7245 | |
 Palmtok | Wayne never lies! If this group holds true it will be interesting to see (assuming they are in) EWC and Flex are “dealt with”. If PNG wants/demands a fully integrated project, this group could get the financing (banks and Ex/Im agencies) to buy the FLNG and EWC modules. I would guess Flex and EWC would rather have it that way so they can focus on what they know. Would sure make life more simple and allow them to move a lot more quickly. KOGAS has stated they want to operate the LNG plant, they and JAPEX have extensive experience in exploration and resource management, and Mitsui has the CSPs and infrastructure covered. KOGAS is no stranger to smaller LNG plants; last October they proposed building 3 in Russia, and if EWC is ripe for the picking, they could gobble them up in a buyout. Kogas proposes to build mini LNG plants, DME plant in Far East Lee is in Sakhalin as part of a business mission that is holding presentations of South Korean companies in three regions of the Far East Federal District from October 17 to 21. “We are proposing a project to build small LNG plants in three regions of the Far East for gasification of automobile transport and to supply gas throughout the Far East region. The main consumers of gas in the Far East Federal District are dispersed in a large area, and construction of gas pipelines to many consumers does not make economic sense. Mini LNG plants would completely cover the whole region’s demand for this fuel,” Lee said. The cost of building one mini plant with capacity of 200,000 tonnes of LNG per year would be $87 million. The fuel would be delivered to consumers by tanker trucks. The proposal for gasification of motor vehicle transport calls for the construction of 100 gas filling stations in each region where such a mini plant is built. Such filling stations and mini plants would enable these regions to switch their public transit to gas, which would result in major financial savings and improve the environmental situation, Lee said. Another proposal from the company is to build a plant to produce dimethyl ether (DME), an alternative fuel. “We have so far proposed the construction of such a plant to the government of Khabarovsk Territory. It is now studying this project. We, in turn, have sent our proposals to Gazprom (RTS: GAZP) and Exxon Neftegas Limited, as we will need gas supplies for this project,” Lee said. There are two options being proposed for such a plant. The first calls for building a plant to produce 300,000 tonnes of DME per year at a cost of $354 million. The second calls for a plant with capacity of 1 million tonnes and investment of about $700 million. “Capacity of 300,000 tonnes would probably be optimal,” Lee said. A similar plant could be built on Sakhalin Island. DME can be used for electricity generation, heating homes and as a fuel for automobiles. It can substitute for natural gas, Lee said. This type of fuel minimizes emissions, and is economical in terms of the cost of transportation, because it is shipped by special trucks and does not require construction of pipelines or other expensive infrastructure. Demand for this fuel in South Korea will total about 1 million tonnes in five years, Lee forecast. “If such a plant is built in the Far East, there would be no need to worry about markets. There will be demand for this product,” he said. Lee also said Kogas is interested in participating in all new oil and gas projects in Sakhalin Region. “We are also interested in the possibility of participation in development of hydrocarbon deposits in Yakutia, and on the shelf of Magadan and Kamchatka,” he said.” It’s fun seriously “what-iffing” again! |
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