Total to map E/A by mid 2015

[jft310]

New article in PNG Industry News.

[Li'loilady]

Total to map out Elk-Antelope by mid-2015

Alison Middleton

Monday, 10 November 2014

FRENCH major Total plans to finalise a development concept for the Elk-Antelope gas fields in Papua New Guinea by mid-2015.

Elk Antelope gas discovery

Analysts have speculated that Total would ultimately be replaced by PNG LNG operator ExxonMobil, to expedite progress on Petroleum Retention Licence 15, which is considered to be the largest undeveloped gas-condensate resource in PNG.

But Total PNG Ltd managing director Philippe Blanchard told local media the concept would lay out where facilities for development of Elk/Antelope were to be built.

“We have to define the type and location of facilities to be built for developing Elk/Antelope,” he told The National newspaper.

“The timetable is still in progress for the overall project and will depend on the concept selected (concept defined by mid-year 2015).”

Oil Search has issued a notice of dispute to InterOil in relation to the Elk-Antelope PRL 15 joint venture operating agreement and is pursuing arbitration proceedings through the Papua New Guinea courts and arbitration proceedings in London.

The dispute related to the transaction announced by InterOil that saw it assign an interest in the Elk-Antelope project area to Total shortly after Oil Search entered the project.

Both InterOil and Oil Search confidently claim they will prevail in the dispute, set to go to the London Court of International Arbitration for a ruling in late November.

A decision is expected during the first quarter of 2015.

Writing for Platts’ The Barrel blog, Christine Forster noted that analysts were speculating arbitration proceedings launched by Oil Search were ultimately aimed at replacing Total with Oil Search’s partner in the operating PNG LNG project.

“Hong Kong-based analysts with Bernstein Research, which previously dubbed Oil Search’s purchase of the stake in Elk-Antelope an ‘inspired move’, are now suggesting the arbitration is designed at opening the door for ExxonMobil,” she wrote.

The field has 9.07 trillion cubic feet of initial recoverable sales gas, according to GLJ Petroleum Consultant’s best-case estimate.

http://www.pngindustrynews.net/storyview.asp?storyid=826938425&sectionsource=s0

[cybersssss]

Has the arb been settled?

Total never spoke before about development plans and all of a sudden they start speaking? This may be a sign that the arg is settled or will be. Otherwise what is there to talk about?

Use or Flush...

[Stavros]

To my opinion, TOTAL is obliged to speak about SOMETHING at the upcoming highly attended 13th Mining and Petroleum Investment Conference. All companies doing business in the oil, gas and mining industries of PNG will attend and speak.

As such they had to come up with some sort of mundane topic to cover:

11.30am - December 1 - Update on Proposed Elk-Antelope LNG Project
Mr Jean-Marie Guillermou, Senior Vice President Asia Pacific, Total Oil

What did TOTAL say to the press that leads us to conclude that something has happened or been decided?
I just found out from my sources on the ground in PNG that Master Sergeant Hans Georg Schultz is TOTAL's official translator.

THE ARTICLE SAYS:
Total PNG Ltd managing director Philippe Blanchard told local media the concept would lay out where facilities for development of Elk/Antelope were to be built.

“We have to define the type and location of facilities to be built for developing Elk/Antelope,” he told The National newspaper. TRANSLATION: WE KNOW NOTHING

“The timetable is still in progress for the overall project and will depend on the concept selected (concept defined by mid-year 2015).” TRANSLATION: WE'VE DONE NOTHING



It seems to me that TOTAL cannot do anything meaningful until they know whether they’re in or out as developer of PRL 15 gas. That could be any time between today ( a negotiated settlement prior to the Arbitration Hearing ) and the end of March ( latest date for Binding Arbitration decision ).

[Stavros]

Zay ar treating me vell in PNG ja!

A penthouse in Port Moresby and a condo in Aussie Land.

[ArtM72]

It defies my imagination that Total is not well advanced in its siting plans. He'll, IOC had done a lot of legwork. Whether property has been acquired is a pretty good question but I suspect they have a pretty good idea what their plant will look like.

[jft310]

Interoil and OSH state they are working on 2 possibilities . Somehow we can share infrastructure with Exxon I believe .

[Li'loilady]

I simply read that mid 2015 date as the check box in an orderled timeline that necessarily follows arb ruling (1Q) and E/A appraisal.