02-28-2014, 04:15 AM
'AD123' pid='38185' datel Wrote:What are the chances some of the Elk/Antelope volumes could be used in the XOM PNG LNG plant? The CEO of Oil Search on this mornings OSH conference call was implying that was a possibility. Would be great to get the IOC cash flows started sooner.
With Oil Search supplying another rig to drill PRL 15 and mentions of trains 4 or 5 it certainly seems so. Also aligns with Hession's comment:
"This not only validates the value of this world class asset in Elk-Antelope but acknowledges the upside in this asset and the surrounding acreage. This partnership will enable us to tap these energy resources more quickly and cost-effectively – and that translates into real financial benefits for Papua New Guinea and the shareholders of the companies involved."
Oil Search obviously wants to use the lower reserve estimate while negotiating (who wouldn't) but they must believe the upside potential is significant.