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More interest in PNG’s exploration and LNG prospects

October 29th, 2008 · No Comments

There is more good news on possible partners for InterOil’s exploration potential and planned LNG facility..

Petronet looks to expand scope in Papua New Guinea

  • Gets nod for making investments in exploration, production biz.
  • Apart from participation in upstream activities, the company would be looking at setting up a liquefaction facility in Papua New Guinea.
  • Richa Mishra
  • New Delhi, Oct. 28 Petronet LNG Ltd (PLL), which is into the business of importing liquefied natural gas (LNG) and setting up LNG terminals in the country, is all set to expand its horizon in the oil and gas sector by proposing to take participating interests in gas assets in Papua New Guinea.
  • Official sources told Business Line that the company board, which met on October 20, has given its go-ahead to PLL for making investments in the exploration and production business. For overseas equity the company is to partner with one of its promoters, ONGC. “PLL already has an understanding with ONGC for upstream business,” sources said.
  • In talks
  • PLL is in talks with three different operators in Papua New Guinea for five explored blocks that have gas resources. The blocks are spread over three different basins in that country. Declining to disclose the names of the operators PLL is in talks with, sources said, they were international companies from the US, Australia and Canada. The company hopes to start negotiations for farm-in opportunities with the foreign stakeholders for equity in the projects.
  • According to sources, PLL has completed the study of seismic data of the assets. Apart from participation in upstream activities, the company would also be looking at setting up a 5-million tonne liquefaction facility in Papua New Guinea. A liquefaction facility is used to transform natural gas from its gaseous state to a liquid state. “The intention is to get gas to India,” sources said.
  • The upstream opportunity is besides the 3.5 mtpa (million tonnes per annum) LNG sourcing, which PLL is looking at from Papua New Guinea. According to estimates, Papua New Guinea is said to have 30 trillion cubic feet (tcf) of gas resources and aims to become an important LNG exporter.
  • PLL is a venture in which four PSUs — GAIL (India), ONGC, Indian Oil Corporation, and Bharat Petroleum Corporation — hold 12. 5 per cent stake each, Gaz de France holds 10 per cent, ADB 5.2 per cent, and financial institutions and the general public 32.8 per cent

It is all starting to come together…

Tags: IOC