'Palm' pid='50341' datel Wrote:But it keeps the existing partnership in place and fills the existing pipeline. Slow drilling of IOC's prospects let's PNG LNG partners find train 3 gas and the Petroleum Minister prevails.
Tru dat duck. We wait. Patiently.
Hides is lowest cost and simplest option PNG LNG currently has for expansion.
Hides is already part of PNG LNG Project Agreement. Quick/easy route to expansion if enough gas is found.
Isolated P'Nyang is not part of PNG LNG Project Agreement, Highlands wells can run $100,000,000 each as they in the 'Most Expensive Onshore Wells Club' in the world.
Incorporating either P'Nyang or IOC gas into PNG LNG is possible and aligning OSH, Santos, Japan PNG Petroleum and PNG Gov't will minimally be time consuming even for XOM. Options include revising the project unitisation agreement with XOM upping their stake, extending existing project unitisation agreement to cover P'Nyang/IOC gas or reaching a tolling agreement where XOM pays fee to partners for liquefaction through PNG LNG facilities.
XOM wants 2 train expansion for construction economies, IOC has 2 train PA with PNG Gov't.
IOC's recert or success in the current 3 exploration wells unlocks both projects. 2015 anyone?