New Upstreamonline article on IOC’s deal with XOM

[Tree]

Thanks for that jft310. I keep looking through various OSH PDFs and they keep suggesting that they would be the source for train3 with a 50% feed from P'nyang (2.5tcf of gas required) and the other 50% from Hides with comments like (taken from last Annual Report) "In addition to the P’nyang resource, potential gas upside exists within the existing Project gas fields. This may be unlocked through the drilling of Project development wells. In particular, the Hides produced water disposal well will help in better defining the gas-water contact in the field. Recent modelling of the gas which exists within the oil fields has also identified further gas resource potential in these fields." It appears the maximum boundaries of Hides has not yet been established fully. But you are correct, they are not 1P reserves.

syd, this is not difficult.

At the time of the annual report, XOM was a bidder for E/A gas they intended on using for PNG LNG expansion.  Why?  Because E/A gas, as we have highlighted for years, was 1/11 the cost of XOM's own gas from Hides.  Also, further drilling is needed for Hides and P'nyang delineation.  Note word 'potential'.

Now XOM is tying up at least 4.6Ts from IOC and that will be for their expansion.  Maybe someday more gas from Hides will be used, but not now.  It costs too much today.