06-03-2013, 11:38 AM
O'Neill seems to feel there is a good chance that XOM will buy 2 trains from IOC as long as the gas is there (not much doubt about the gas being there).
"The Prime Minister told a gathering on Friday evening the potential entry of ExxonMobil to those assets in Gulf could significantly lift production at the PNG LNG processing facility outside Port Moresby.“At the moment we are building two trains (or processing units) at the processing site for gas from the Hela and Southern Highlands provinces. The revenue from the export of LNG from these two trains would double the size of our economy (GDP).“If the talks are successful and ExxonMobil gains access to gas from Elk and Antelope, we will certainly add one, possibly two, more trains and our GDP would triple in size.“This means PNG will have a stable revenue flow from its gas resources for the next 50 years or so.”
If that is the case, that gives XOM 4 trains and they say they can handle 5 at that site. Now does it make much sense that if there is enough gas in PRL 15 that they wouldn't suck enough gas to do those 3 trains? I think so. Then they have one complete project. Many happy people. So then would they want to stop if there is enough gas for another project? Not likely. But if enough gas is proven up that a new project could be done much sooner, XOM likely has first option to be the partner.
XOM won't let this rich wet gas get away I don't believe.
"The Prime Minister told a gathering on Friday evening the potential entry of ExxonMobil to those assets in Gulf could significantly lift production at the PNG LNG processing facility outside Port Moresby.“At the moment we are building two trains (or processing units) at the processing site for gas from the Hela and Southern Highlands provinces. The revenue from the export of LNG from these two trains would double the size of our economy (GDP).“If the talks are successful and ExxonMobil gains access to gas from Elk and Antelope, we will certainly add one, possibly two, more trains and our GDP would triple in size.“This means PNG will have a stable revenue flow from its gas resources for the next 50 years or so.”
If that is the case, that gives XOM 4 trains and they say they can handle 5 at that site. Now does it make much sense that if there is enough gas in PRL 15 that they wouldn't suck enough gas to do those 3 trains? I think so. Then they have one complete project. Many happy people. So then would they want to stop if there is enough gas for another project? Not likely. But if enough gas is proven up that a new project could be done much sooner, XOM likely has first option to be the partner.
XOM won't let this rich wet gas get away I don't believe.