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InterOil in the local press

March 3rd, 2009 · 4 Comments

They have reasons to celebrate..

Massive gas find in Gulf
By SHEILA LASIBORI [The National]

THE discovery of a large reservoir of top quality natural gas in the country has placed Papua New Guinea among the top producers of liquefied natural gas at world markets, Prime Minister Sir Michael Somare said yesterday.

He was speaking when officiating at the flow and flare ceremony for a massive gas find at Interoil’s Antelope One site in Gulf province.

InterOil Corporation needed to raise US$5 billion (K14 billion) to complete the infrastructure for the project, including the construction of a pipeline to its Napa Napa oil refinery on the outskirts of Port Moresby.
At yesterday’s test flow, Sir Michael opened the first valve, which flowed and flared gas equivalent to 105.5 million cubic feet per day (mcfd) (yesterday’s figure, as different testing schedules produce different measurements).

The second flare was measured to produce a “world record” 383mcfd and it could have been more as technicians allowed the gas to flow through a three-inch pipe instead of the full six-inch diametre to control the heat.

Antelope One can produce up to 545 mcfd of dry gas, which, when flowed, measures 382mcfd and this can produce up to 5,000 barrels of condensate per day (gas in its condensed state), or equal to a total of 68,600 barrels of oil per day.

The productivity of this well was way above the 350-550mcfd of gas production needed to start a liquefied natural gas (LNG) project.

The company said a third party-confirmed capacity of 17.7 billion cubic feet per day (bcf) of gas, places PNG as one of the best quality gas producers in the world with a 760m column of gas.

InterOil’s chief executive officer and chairman Phil Mulacek said this was a world record as no such discovery (to date) had happened prior to Antelope One.

The well flowed enough that in a little bit of time, just one minute, it would have filled up a pipeline from Port Moresby to here, in one minute.

We took an hour and 30 minutes to fly the same distance,” he said. “We understand it to be a record for the world; we’re not cheating, we’re not horizontal; it’s a straight vertical column.

“It proves that the nation has one of the highest quality reservoirs on this planet,” Mr Mulacek said.
The discovered oil well is the largest onshore vertical hydrocarbon column in the entire Asia-Pacific region with more than 2,600ft (792m) of gas and condensate, which is a new resource discovery estimated by InterOil engineers at more than 10 trillion cubic feet (tcf).

Sir Michael said the “world record natural gas discovery” will place PNG as a co-leader with Australia in supplying LNG to Asian markets.

“InterOil has elevated the status of PNG in global energy markets and has positioned our country to become the dominant source of new LNG for the growing energy markets in Asia for decades to come,” Sir Michael said.

“We (Government) introduced a new upstream fiscal policy and InterOil is the only company that believed in PNG and is willing to commit significant capital to our future development. “InterOil stepped up to the plate with a US$125 million (K349 million) drilling commitment, the largest exploration programme in our history.

“The next steps to realise that vision has become clearer and it is now our turn to commit to clearing the path towards first production with our loyal and dependable partner, InterOil,” Sir Michael said.
Meanwhile, Petroleum and Energy Minister William Duma announced that InterOil’s petroleum licence, scheduled to expire on March 23, was extended for another five years based on advice by the petroleum advisory board.

Wayne Andrews, InterOil’s vice-president on capital markets and investor relations, said InterOil might start condensating next year and, in the next five years, might start producing for world markets from its Elk/Antelope One field for leading LNG markets like Japan, South Korea and Spain.

World record!
By GORETHY KENNETH [Post-Courier]

THE newest gas discovery could back Papua New Guinea’s national budget for “the next 30 years”, jubilant InterOil chief Phil Mulacek said yesterday.

He was joined by Prime Minister Sir Michael Somare, who said it was a “world record natural gas discovery” and placed PNG as a co-leader with Australia in supplying LNG to the Asian markets.

AN excited Mr Mulacek made the prediction at the Antelope-1 site in the presence of Sir Michael and Lady Veronica Somare, Ministers William Duma, Paul Tiensten, Mark Maipakai and various other dignitaries.
The occasion was the ceremonial flare up of the Antelope-1 well which was done by Sir Michael, with assistance from Mr Mulacek and Mr Duma.

Mr Mulacek said extensive testing confirmed Antelope-1 as one of the largest hydrocarbon column heights encountered in a single vertical onshore wellbore in all of Asia at more than 2600 feet. Sir Michael in his speech also said Antelope contained “the largest vertical natural gas reservoir in PNG, Asia Pacific region and possibly the world“.

“The Antelope-1 well is the largest onshore vertical hydrocarbon column in the entire Asia Pacific region with over 2600 feet (792 metres) of gas and condensate and a new resource discovery estimated by our engineers at over 10 TCF. This establishes the Elk/Antelope field as the largest in the country,” Sir Michael said.

“This discovery now ranks PNG as one of the top sources of quality gas hydrocarbons in the world and positions the country to be the next major supplier for decades to come. The Antelope-1 well, which today flowed at a new world and PNG record rate of 383 million cubic feet per day with 5000 bbl of condensate and a third party confirmed-capacity of 17.7 BCF (billion cubic feet per day) of gas, places PNG as one of the best quality gas producers in the world with a 760 metre column of gas.

“This discovery will place PNG as a co-leader with Australia in supplying LNG to the Asian Markets, in global energy markets and has positioned our country to become the dominant source of new LNG for the growing energy markets in Asia for decades to come. InterOil stepped up to the plate with a $US125 million drilling commitment, the largest exploration program in our history.

“The next steps to realise that vision have become clearer and it is now our turn to commit to clearing the path toward first production with our loyal and dependable partner, InterOil. “Dry gas rate of 545 million per day, adjusted to well flowed at 383 million cubic feet per day with 5000 barrels of condensate per day,
or a total 68,600 barrels of oil equivalent per day, a new record for the country and possibly the world.

“The forthcoming LNG projects usher in a new era of exploration and development of our county’s vast wealth of natural resources. The benefits for the future of Papua New Guinea and its people will be secured through many years of stable GDP growth

“For our country, this marks an accomplishment that was achieved through many years of mutual co-operation between the Government of PNG and InterOil Corporation. InterOil has elevated the status of Papua New Guinea.”

Tags: IOC

4 responses so far ↓

  • 1 Darcy Patten // Mar 3, 2009 at 7:01 am

    “The next steps to realise that vision has become clearer and it is now our turn to commit to clearing the path towards first production with our loyal and dependable partner, InterOil,” Sir Michael said.

    Hmmmm, wonder how long it will take to sign the LNG agreement after a statement like that?

  • 2 Jim Tate // Mar 3, 2009 at 2:09 pm

    Makes no sense they don’t have an agreement already..Just a formality.

  • 3 BRIAN SPENCER // Mar 3, 2009 at 5:18 pm

    Booyah!!!!!!!!!! IOC is one of just a few that I truly have confidence in with a current White House bent on total socialism..My fears as are many investors, are not IOC specific but with the Messiah and his comrades and the destruction their policies can bring upon our country and the rest of the world.

  • 4 Immanuel // Mar 4, 2009 at 8:33 am

    Dont worry about the agreement…I am sure a draft is already completed.