WITH exclusive negotiations underway, InterOil says ExxonMobil is seeking 4.6 trillion cubic feet of gas from its Elk-Antelope discoveries to fuel a third train expansion of the PNG LNG project.

While there is a lot of time left within the 60-day exclusive negotiations period announced on May 24, InterOil interim chief executive officer Dr Gaylen Byker told PNGIndustryNews.net that “major terms” had already been agreed to. 

Asked whether three more wells would need to be drilled into the field to re-certify its resource, Byker revealed there was already enough gas for a PNG LNG expansion.

“ExxonMobil PNG is proposing that 4.6Tcf of gas from the Elk-Antelope field is used to underpin the construction of an additional train at the PNG LNG project site,” he said. 

“This is not contingent on re-certification of the Elk/Antelope resource.”

As of late 2012, GLJ Petroleum Consultant’s figures for the field included a best case estimate of 9.07Tcf of initial recoverable sales gas and 135.4 million barrels of initial recoverable condensate. 

The Papua New Guinean government is using separate estimates from Gaffney, Cline and Associates. 

While they aren’t publicly known Byker indicated they were strong enough to potentially double PNG LNG’s capacity from its under-construction, two-train plant.

“The Gaffney, Cline and Associates estimates are sufficient to underpin two LNG trains,” Byker told PNGIndustryNews.net. 

About three-quarters of the Exxon-led PNG LNG joint venture’s 292km onshore gas pipeline was completed by February but there could be more pipeline welding work ahead. 

Byker said the Elk-Antelope field was about 90-100km from the coast, with the PNG LNG pipeline just offshore. 

Exxon is negotiating with InterOil and its partner Pacific LNG for a stake of the Elk-Antelope-hosting petroleum retention licence 15.

The goal is to conclude a sales and purchase agreement, with Exxon succeeding in the prior bidding process which included offers from other supermajors and national oil companies. 

PNG LNG is on track for first exports next year. 

A third train expansion may lift capacity from 6.9 million tonnes per annum to 10.35Mtpa, based on the existing plant designs.