Notice FID in 2018 that sliding the wrong direction.
LNG progress indicates growth
OIL Search has reaffirmed that the Papua Liquefied Natural Gas project is the next potential LNG development in the country.
Managing director Peter Botten, pictured, told a recent Credit Suisse Asian investment conference in Hong Kong that significant progress was made last year.
He said the progress included the assumption of operations by Total SA of the Elk-Antilope Petroleum Retention License 15 (PRL 15) in the third quarter of last year, which ramped up its presence in the country
Botten said the location of key infrastructure sites selected for development, the decision supported by the Government and financing activities commenced with financial, legal and tax advisers appointed were part of the progress made.
He said the completion of the appraisal programme and confirmation of resource size would enable the selection of final investment concept and the number of LNG trains.
Botten said the LNG (liquefied natural gas) marketing and gas agreement negotiation were to start in the second half of this year, ahead of the Front End Engineering Design entry in 2017.
“OSL expects final investment decision in 2018 preceded by early works,” Botten said.
He said there were encouraging PRL 15 appraisals to date.
Meanwhile Botten was optimistic about Oil Search’s production saying growth project could double by early 2020.
He said few Oil Search project had made significant progress.