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From the latest OSH quarterly activity report (should be released some time today probably).
During the quarter, ExxonMobil entered into exclusive negotiations with InterOil and Pacific
LNG Group, regarding the development of PRL 15 in the PNG Gulf Province, which contains the
Elk and Antelope gas fields. The discussions are focused on InterOil and Pacific LNG selling
ExxonMobil sufficient gas to develop an additional LNG train at the PNG LNG Project site. We
are watching the progress of these negotiations with interest, as should this gas be brought
into the PNG LNG Project, it is likely that Oil Search will have an opportunity to participate in
this expansion.
This suggests that ether OSH does not know what is going on, or else XOM will only be purchasing enough gas for 1 train in the PNG LNG project.
Dont get your hopes too high for 2 trains at PNG LNG plant just yet untill we know more in a few days time.
From the same OSH report
Engineering scoping studies on the P’nyang gas field in PRL 3, focused on the potential use of
the gas to help underpin an expansion of the PNG LNG Project, are continuing. During the
quarter, additional seismic was acquired on both the P’nyang gas field (PRL 3) and Juha North
gas field (PDL 9), with the data to be used to gain a better understanding of the Highlands gas
resource potential and assist in potential development planning. Meanwhile, studies also
continue on other Highlands exploration opportunities in close proximity to the PNG LNG
Project area.
From this it looks like OSH still thinks they may be providing gas maybe one of the extra trains (3 or 4) to the PNG LNG project.
Please take from this whatever you think as this is not sufficient to draw any SOLID conclusions from as yet.
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One take would be .
The current Exxon pipe can carry 3 trains with 2 trains committed so far.So the third train is a like to have item.
OSH has potential NG only , IOC has proven certified NG today. IOC thus has the in on the third train.
Appears a second pipe will be built for trains 4-5 and 6 .
Gives OSH plenty of time to turn potential into reality.
Many say the current OSH finds so far are propaganda only.
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If train 3 goes, then the ice is broken and whoever has the cheapest gas available first will get first shot at trains 4-6, whoever that may be.
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'Palm' pid='26034' datel Wrote:If train 3 goes, then the ice is broken and whoever has the cheapest gas available first will get first shot at trains 4-6, whoever that may be.
We have to be aware that IOC may be ? better served by developing their own LNG plant rather than selling their gas to PNG LNG for expansion.
Selling gas for just 1 train may be all that IOC requires to do to get the finances to persue their own plans for the future.
These are interesting times.
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Or IOC may have enough gas to do both. Their prospects are highly regarded and much more promising than any to date in PNG.
Interesting times indeed in PNG.
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Here's the truth about Oil Search's latest wells.
Total's Papua New Guinea Venture Makes Modest Start
07/23/2013 | 03:59am US/EasternRecommend:
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By Ross Kelly
SYDNEY--Total SA's (>> Total SA) foray into Papua New Guinea has gotten off to a shaky start after two exploration wells failed to find much natural gas, according to the French company's Australian partner in the project.
Oil Search Ltd. (>> Oil Search Limited) said in a statement Tuesday that the first two exploration wells in a campaign to tap new natural gas resources in the country--Flinders and Hagana--had yielded only "relatively modest" amounts of the fuel.
Oil Search said both wells, though, had intersected good quality types of rock--possibly indicating the presence of larger natural gas reserves nearby that could be targeted with further drilling. A Perth-based spokeswoman for Total declined to comment, and a call to Oil Search, whose shares fell 2.6% in Sydney, wasn't immediately returned.
Papua New Guinea, an impoverished southeast Asian nation that lies just north of Australia and to the east of mainland Indonesia, has around 22.6 trillion cubic feet of natural gas reserves, U.K.-based consultancy Wood Mackenzie estimates--about equal to U.S. annual consumption of the commodity. That likely underestimates the true potential, however, as the country has so far only been lightly explored for oil and gas.
Recent big discoveries by the likes of Exxon Mobil Corp. (>> Exxon Mobil Corporation) have transformed Papua New Guinea, better known for its jungles and lawlessness, into one of the world's hottest energy plays. Its promise as a hub for new sources of natural gas has begun to lure an increasing number of larger oil companies, including Total, looking to feed Asia's growing appetite for fuels that burn cleaner than coal.
Rival Exxon's US$19 billion liquefied-natural-gas project, dubbed PNG LNG, is among the more advanced in Papua New Guinea. The facility is scheduled to ship its first LNG cargos to Japan, China and Taiwan next year, while more recent gas discoveries have led Exxon and its partners already to begin planning an expansion of the project.
Aiming to mirror Exxon's success, Total last year bought stakes ranging from 35%-50% in five exploration blocks owned by Oil Search in the Gulf of Papua that it hoped would underpin the creation of another big LNG plant in the country. The French oil producer has a strong foothold in the Asia-Pacific region already, having spent billions of dollars buying up stakes in two large LNG projects in neighbouring Australia.
Total bought into the Papua New Guinean blocks by promising to cover the drilling costs for Oil Search, a much smaller player. No specific price tag was ever disclosed.
Andrew Williams, an analyst at RBC Capital Markets in Melbourne, said the first two wells hadn't delivered a significant discovery, but described the drilling results as "mixed" in view of the quality of the rocks encountered by the wells.
"The play remains high risk but encouraging enough to commit to another well in the current programme," Mr. Williams said, noting that Oil Search had identified more than 30 potential drilling prospects in the area. Hagana is still drilling ahead to its targeted depth, while a third well is also being prepared.
"Although the volumes at Flinders and Hagana are likely to be relatively modest, the company has been sufficiently encouraged to take up a further well option, and will drill the Kidukidu prospect once Hagana-1 is completed," Oil Search said in its statement.
Underscoring the country's perceived potential, Exxon has also started talks to invest in U.S.-based InterOil Corp.'s (>> InterOil Corporation (USA)) Papua New Guinean natural gas assets, and Japan's Mitsubishi Corp. (>> Mitsubishi Corp) agreed, in February, to a US$280 million deal to buy stakes in several natural gas discoveries made by Canada's Talisman Energy Inc. (>> Talisman Energy Inc.).
Write to Ross Kelly at ross.kelly@wsj.com
Stocks mentioned in the article : Total SA, Exxon Mobil Corporation, Talisman Energy Inc., Oil Search Limited, InterOil Corporation (USA), Mitsubishi Corp
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Total story today states they totally disagree with the OSH propaganda pieces above,
"Although the volumes at Flinders and Hagana are likely to be relatively modest, the company has been sufficiently encouraged to take up a further well option, and will drill the Kidukidu prospect once Hagana-1 is completed," Oil Search said in its statement.
Quote and end quote from OSH
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'jft310' pid='26069' datel Wrote:Total story today states they totally disagree with the OSH propaganda pieces above, "Although the volumes at Flinders and Hagana are likely to be relatively modest, the company has been sufficiently encouraged to take up a further well option, and will drill the Kidukidu prospect once Hagana-1 is completed," Oil Search said in its statement. Quote and end quote from OSH
I do not understand.
What one do you have issue with.
A) Although the volumes at Flinders and Hagana are likely to be relatively modest
Flinders 1 : 5-10 metre gas column
Hagana 1 : "Shortly after the end of the
quarter, preliminary interpretation of logging data recently acquired over the lower zone of the
Hagana well, in the secondary Pliocene objective, indicates the presence of a nine metre gas
column."
I would call that "relatively modest" It is not medium sized or large, that is for sure.
B)take up a further well option, and will drill the Kidukidu prospect once Hagana-1 is completed
Why do you think they would not drill this prospect when it is the other side of the "Pasca " discovery compared to Flinders and Hagana?
Where does the Total piece say it disagrees ?
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