Wednesday, May 09, 2012

Western province is next frontier of LNG exploration

Western province could soon become the next frontier of PNG LNG project expansion following on from the Southern Highlands, according to New Guinea Energy (NGE) Ltd executive chairman Michael Arnett, The National reports.
Western province is already becoming a multi-million dollar oil and gas exploration ground for companies such as NGE, Talisman Energy Inc, Mitsubishi Corporation, Esso PNG Exploration Ltd and Oil Search.
Last October, PNG Authorities extended the licence period and exploration programmes the NGE’s 50%-owned PPL 268 and PPL 269 with Talisman and the two companies are now committed to a minimum expenditure of US$55.69 million on the licences over the next five years.
On February 23, 2012, Talisman announced that it had entered into a strategic joint venture with Mitsubishi Corporation, worth US5.18 million to aggregate natural gas in the Western province with a view to potential LNG export of approximately three million metric tonnes per annum.
On March 7, 2012, NGE announced the sale of its interest in PPL 277 to Esso PNG Exploration Ltd (Esso) and Oil Search (PNG) Ltd, involving an aggregate cash payment of US$35 million, plus an ongoing royalty on future production, subject to certain conditions.
Arnett told the company’s annual general meeting in Sydney on Tuesday that the recent announcement of the P’nyang South Appraisal well, indicating a potential vertical gas column of over 650 metres, was particularly significant to all Western province explorers.
“This discovery alone could potentially justify the P’nyang field becoming a cornerstone of the PNG LNG project expansion,” Arnett said.
“This could provide Western Province gas discoveries with two export routes: PNG LNG or via the infrastructure that may be built for Talisman’s previously-announced gas aggregation strategy.
“The oil industry as a whole benefits from successful drilling in the Western province as each gas discovery adds to the critical mass necessary to justify oil and gas processing and export infrastructure.
“In that light NGE, was very pleased to hear of the results of the Stanley, Ubuntu, Elevala and Ketu Appraisal wells in the Western province over the last 12 months.
“We believe that 2012 will continue to be a significant year in the company’s history in terms of activity across all the licences.”
Arnett said with two seismic programmes already completed on petroleum prospecting license (PPL) 265 and PPL 266, another planned for PPL 268 in the third quarter of the year, and a third exploration well, this time in PPL 265 anticipated for the fourth quarter of the year, a busy year was forecast.

1 comment:

  1. Anonymous10:48 AM

    Thank you so proud of my home Province.