Elk-Antelope option in frame
By Russell Searancke
22 November 2013 00:00 GMT
Papua New Guinea producer Oil Search has suggested that the Elk-Antelope gas resources owned by InterOil could be developed as a separate liquefied natural gas project that could utilise the existing PNG LNG project’s infrastructure.
It was one of three scenarios that Oil Search suggested as alternatives for bringing about an expansion of the PNG LNG project, in which it is a co-owner.
The first scenario would see the P’nyang gas field being developed and/or the so-called “Hides upside” and/or other Highlands resources, but all three need further appraisal.
The second and third scenarios revolve around the Elk-Antelope resources in Block PRL 15, which InterOil is currently offering in a farm-out package to several supermajors, which are understood to include Exxon-Mobil, Shell and Total.
Oil Search said the outcome of the negotiations for Elk-Antelope gas is “of key importance” as a potential catalyst for a new train at PNG LNG.
There would be an option for gas from PRL 15 to either underpin a new train “through some form of integration into the PNG LNG project” or PRL 15 gas could be developed “independently of PNG LNG as a separate project that may still utilise existing PNG LNG infrastructure”.
InterOil said last week it is confident of closing a farm-out deal by the end of this year.