"In the case of Petromin’s 22.5% stake of the Elk-Antelope field, which underpins InterOil’s Gulf LNG project, there could be more opportunities to possibly use these resources to fuel any expansions of the PNG LNG project."

http://www.pngindustrynews.net/storyview.asp?storyid=798350838&sectionsource=s0

Botten on govt reforms

Monday, 8 April 2013 OIL Search managing director Peter Botten is supporting the Papua New Guinea government’s petroleum-related reforms, including the recent formation of a national oil company that “owns all” of PNG’s hydrocarbon interests. "> Oil Search managing director Peter Botten on the ground in PNG In his section of Oil Search’s annual report unveiled on Friday, Botten said he was very supportive of recent initiatives, especially the proposed sovereign wealth fund to manage the government’s PNG LNG project revenues from 2014. “Oil Search also believes that the proposal to reform the Department of Petroleum and Energy, by creating a better resourced Petroleum Authority, and the recent formation of a revitalised national oil company, with responsibility for owning and managing all the state’s hydrocarbon interests, are to be applauded,” Botten said. These comments support other views that the government could transfer the 16.6% stake of PNG LNG held by the state-owned Independent Public Business Corporation into the same company which is expected to receive the petroleum assets of state-owned Petromin, which will be dismantled. In the case of Petromin’s 22.5% stake of the Elk-Antelope field, which underpins InterOil’s Gulf LNG project, there could be more opportunities to possibly use these resources to fuel any expansions of the PNG LNG project. “In our view, having strong entities to both regulate and participate in PNG’s petroleum industry [is] essential in light of the forthcoming massive change in the size and complexity of the sector,” Botten said. On the government’s intentions to review petroleum taxation laws, Botten said continued investment required ongoing stability, certainty and predictability. “With many potential growth projects expected to reach development stage in the next decade, we are confident that an appropriate split of risk and reward can be achieved,” he said. He also outlined Oil Search’s key areas of focus for 2013, which included whether a decision was made to start front-end engineering design work for PNG LNG expansion based on the P’nyang gas field it boosted last year. Outside of its well-known work with PNG LNG, its offshore PNG drilling campaign, its upstream endeavours in the Middle East and its continual oil field optimisation operations, Oil Search will embark upon appraisal drilling of its Mananda oil and gas field in PNG. Botten said if this was successful a development decision would be made by the end of 2013.

"Oil Search also believes that the proposal to reform the Department of Petroleum and Energy, by creating a better resourced Petroleum Authority,..." DPE reorganized/changed to Petroleum Authority as well

BTW, XOM dry gas OT and JKM seems to be a route.  What's that dry gas cost comparison between PNG LNG and Gulf LNG??

Pickboone ,smart guy

Continued derisking & PNG LNG . Over the past 40 days, InterOil has been substantially derisked and the probability of its success has materially increased. The company announced receipt of several bids for a stake in its world class Elk/Antelope resource, PM Peter O'Neill publicly acknowledged Japan's interest in InterOil's project and insinuated acceptance of JKM as a partner, Petromin has been dismantled, and InterOil's CEO announced the company's intention to spud Elk-3 within weeks, a clear indication that it expects to consummate a deal before then. Interestingly, the following paragraph was included in last night's PNG Industry News article titled "Botten on govt reforms": "In the case of Petromin’s 22.5% stake of the Elk-Antelope field, which underpins InterOil’s Gulf LNG project, there could be more opportunities to possibly use these resources to fuel any expansions of the PNG LNG project." This idea is clearly garnering significant momentum, as XOM recently acknowledged plans to expand PNG LNG's capacity by as many as three trains, and Oil Search hasn't yet discovered even enough gas for one additional train at Hides and P'nyang. In fact, in its annual report issued last week, Oil Search acknowledged that it has no plans to drill another well this year at P'nyang and instead it will focus on conducting additional seismic work. Hence diverting gas from Elk/Antelope or Triceratops would be a very compelling option for expediting growth at PNG LNG and accelerating the monetization of InterOil's gas without much corresponding CAPX. This option provides a backstop that virtually guarantees InterOil's resources will be monetized, and the dismantling of Petromin is a game changer in removing the bottlenecks to accelerated monetization and the pursuit of such value enhancing options. The risks associated with owning InterOil have largely disappeared while the approaching reward is greater than ever oone's take,

Duma interview on possibility of converting DPE into Petroleum Authority back in Dec. 2010.

This surfaced again at Y/E 2012 and likely driven by industry to streamline and fund the governing authority.

Let's go through the checklist.  Bidders ready CHECK, IOC/partners ready CHECK, PNG Gov't ready....CHE....

http://www.radioaustralia.net.au/international/radio/onairhighlights/png-minister-explains-new-petroleum-resources-authority