And why not?
Interoil Says ‘Significant Players’ Keen to Join PNG Venture
Papua New Guinea expects InterOil and its partners to build a plant capable of producing between 7.6 million and 10.6 million metric tons of LNG a year, Andrews said. The company previously was targeting initial output at 5 million tons a year, including 2 million tons from a floating LNG vessel, he said.
Production may start in late 2014 or early 2015, according to Andrews. Mulacek and Andrews declined to say how much of the venture and the gas fields InterOil plans to sell.
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A few observations:
- [“The biggest challenge for major oil and gas companies is access to resource. There are few places left which are unexplored. PNG is a frontier territory.”] Yes, we’ve been saying this for years. It’s pretty obvious.
- It is seeking an operating partner, combined with the mentioned start-up dates, we still don’t think the present plans in the Gulf will be altered too much (they might be expanded and have a different operator)
- As it happens, the article starts with “it aims to sign on a partner and make an investment decision by the end of the year”
- We hope they’ll maintain most of their exploration stakes, as after this deal materializes, they will have sufficient money to drill and there are 56 structures with 14 possible reefs out there with the first one, Triceratops, ready to be drilled before year end. We know it contains gas (per 1959 well), seismics has shown a large reef. Interesting combination…