From the Post Courier, some interesting titbits..

Second LNG project gets Govt approval
By GORETHY KENNETH

INTEROIL Corp yesterday got PNG Government approval to advance its plans for the country’s second liquefied natural gas (LNG) project. The Government officially declared the Antelope 1 gas well in Wabo, Gulf Province, as a project site for the K5 billion LNG project.

It also renewed InterOil’s original Petroleum Prospecting Licences 236, 237 and 238 for a second five-year term, effective as of March 23. This declaration of location and the extension of the licence areas pave the way for InterOil and its joint venture partners, Petromin PNG Holdings and Pacific LNG, to commercialise the project.

Prime Minister Sir Michael Somare, Petroleum and Energy Minister William Duma and InterOil chief executive Phil Mulacek signed the agreements at Parliament House yesterday, witnessed by Petromin managing director Joshua Kalinoe.

In approving InterOil’s declaration of location and awarding an extension Mr Duma said: “InterOil’s commitment to the country of PNG is clear and it has been one of the few companies that has demonstrated its confidence in the Government and the people of PNG.

“Accordingly, as Minister for Petroleum and Energy, I am approving InterOil’s declaration of location, which will ultimately result in a production licence surrounding the Elk and Antelope discovery. Additionally, my department has renewed InterOil’s original Petroleum Prospecting Licences 236, 237 and 238 for a second term of five (5) years effective 23 March 2009.

The Government of PNG will execute a project agreement for the InterOil liquified natural gas project over the course of the next few weeks. PNG is well positioned to compete in the global markets following the world class discovery and the establishment of new world records of gas flow rates of 545 million per day, with a world record calculated absolute open flow (CAOF) rate by third parties of 17.7 to 20 billion BCF per day.

This world class gas resource will deliver supplies to meet the ever increasing demand for reliable energy in Asia, as PNG looks to become the new leader in Asian LNG.” Mr Kalinoe however said: “The flaring of Antelope 1 on Monday 2nd March, 2009 underpins a first train 3.5 million tons per annum capacity plant at an estimated cost of $US5 billion. As we prove up reserves through further exploration drilling we will add another one or two trains.

“For Petromin, the State and people of Papua New Guinea this will be our single largest petroleum project where Papa New Guineans will be given the opportunity to be active participants in the whole value chain.

“Petromin and InterOil have forged a very solid long term strategic commercial partnership. In this regard, I am happy to announce that InterOil and its downstream partners have agreed for Petromin to co-market its share of the LNG.

This will make Petromin a fully integrated petroleum company in which Papua New Guineans will for the first time be given the opportunity to participate in the full value chain of the LNG business. This is what our political leaders envisaged when Parliament created Petromin in 2007. InterOil has now made it possible for this vision to be realised.”

InterOil chief Mulacek, as happy as ever, thanked the PNG Government for renewing the licences and officially doing the declaration. “This now means we have a lot to do,” he said.

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So:

• Petromin, the PNG Government outfit is going to participate in the LNG marketing, and effectively participates in the whole value chain. If there was any doubt that the PNG Government was not fully behind this, that doubt should now dissipate completely, as interests are quite aligned now.