Written a few weeks ago. PPS nosedive since. Highlight the 'fears'.
Looking like Ant-3 answered some questions and a big bidders list did too.
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PNG keeps everyone guessing
By Russell Searancke
22 November 2012 23:59 GMT
There are three main elements — InterOil, the PNG government, and the project itself— each of them as exotic and puzzling as the other. However, after the latest news out of PNG, we now know two things.
Firstly, the government wants half of the Elk-Antelope gas reserves to be used domestically. That was typical PNG politics — expect the unexpected. Now we wait and see if the parties can agree terms of that deal. (Since shown to be at least a 3 yr. old IOC proposition to equity share up to 50/50 - Tree edit)
The second thing we know is that the LNG project can proceed on the basis of a single train exporting 3.8 million tonnes per annum, but only if the project can attract a major company.
The government does not want InterOil running the show, but a major would only come on board if it was certain about gas resources, and comfortable working with InterOil in the very challenging setting that is PNG. InterOil believes it will move swiftly to close the partner deal but who, realistically, will want to take this on?
Shell is the government’s preferred partner but sounds a little lukewarm. Chevron and Eni may have shown some interest but, like Shell, do not have an existing upstream business in PNG.
Perhaps the company that will make a play given its recent country entry is Total. Some of the acreage that Total has gained is very near to InterOil’s.
No doubt the next chapter in the story will be just as intriguing as the previous ones.
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InterOil sees success with Antelope appraisal
The New York-listed explorer said that Antelope 3 had tested natural gas and condensate with a maximum gas rate of 44.8 million cubic feet per day on a drill stem test, with similar gas composition to the two previous probes.
The company added that the gas flow rate was significantly limited by the downhole drill stem test equipment and the surface separation package.
InterOil general manager of exploration David Holland said the probe had “confirmed the continuity of a highly productive reservoir” seen in the upper limestone with Antelope 2, and had also encountered the reservoir higher than anticipated.
InterOil had been expecting to penetrate the top of the carbonate reservoir at a depth of about 1690 metres, but instead tested from a depth of 1622 metres to a total depth of 1800 metres.
Spud in early October, Antelope 3 lies about a kilometre south of Antelope 1 and 2.6 kilometres north of Antelope 2.
InterOil Corporation is a vertically integrated energy player focused on Papua New Guinea, where it holds licences covering 3.9 million acres, operatorship of the Gulf LNG project and downstream and retail facilities.
