Page 36 - Oil&Gas-AustralAsia-2015-Issue-1
P. 36
P NG
Total named operator of Elk PRL15 partner InterOil reportedly held
negotiations early last year with Exxon-
Antelope after arbitration ByMarieRYAN Mobil regarding an anticipated farm-
in deal to produce the field, however
Legal action over one of Asia’s largest around 5.3tcf of raw gas and 75 million talks with the US super major failed to
appraised gas fields, Elk and Antelope barrels (mmbbl) of associated liquids. materialise.
in Papua New Guinea’s onshore oil and Oil Search’s involvement in ExxonMo- In December a deal with French major
gas Gulf Province, has come to an end bil’s nearby US$19 billion PNG LNG Total was announced with the company
with Oil Search and InterOil reach- Project and comments from the com- buying a 61.3 per cent share and taking
ing an amicable agreement to move pany stating the Elk/Antelope Project over as operator from InterOil who now
forward with French major Total as could be developed more quickly and own 14.3 per cent of the Elk/Antelope
operator. economically with Exxon are noted as project.
The legal fued over Elk/Antelope has reasons why the matter ended up in Terms of the Total deal include the
caused PNG focussed mid-cap Oil front of the International Chamber of French company agreeing to make
Search to seek arbitration over the issue Commerce arbitration panel in Singa- further payments depending on the re-
of who should act as operator of the pore. source certified size of Elk/Antelope at
project after the company attempted to Analysts at Bernstein’s pointed out final investment decision (FID) and first
assert its contractual rights over the Pe- Exxon’s potential involvement in Elk/ cargo milestones. Should the resource
troleum Retention Licence 15 (PRL15) Antelope posed material risks, with the be determined at 7.1 Tcf of gas, the
farm-in agreement. delay of PRL15 in favour of PNG LNG certification payment would be around
The company purchased a 22.835 per expansion and the possible restrictions $580 million, taking the total return to
cent stake last year for US$900 million on the size of the Elk/Antelope plant to InterOil, including all other contingent
in the Elk/Antelope field that is estimat- comply with Exxon’s higher threshold payments, to $1.62 billion. §
ed to hold 2C contingent resources of for reserve certification, or InterOil
being forced to feed gas into PNGLNG.
The Papua takes first shipment By Marie RYAN
The first PNG LNG Project cus- “The arrival of this ship supports our PNG Limited, the operator of the PNG
tom-built ship, The Papua, arrived at objective to safely and reliably deliver LNG Project.
marine facilities in February to begin LNG to our customers,” Mr Barry said. In 2011, Exxon Mobil Corporation and
cool down and loading of its first LNG The Papua is owned by Aquarius LNG MOL selected Hudong-Zhonghua Ship-
cargo. Shipping Limited, which is a joint ven- building, a subsidiary of China State
The vessel recently christened by Mrs ture with Mitsui O.S.K Lines (MOL), Shipbuilding Corporation, to build two
Lynda Babao O’Neill is a 172,000 cubic China Shipping Group, and Sinopec. LNG carriers in China for the PNG
metre, 290-metre-long LNG carrier MOL will operate the ship on behalf of LNG Project. The Papua is the first of
beginning its service on a long-term the PNG LNG venture and deliver car- the ships to be built, with the other
charter with the PNG LNG Project, goes under the direction of ExxonMobil scheduled for completion in 2016. §
providing LNG transportation to major
customers in Asia. The Papua is the
largest liquefied natural gas carrier ever
to be built in China.
Andrew Barry, ExxonMobil PNG The Papua at the PNG LNG marine terminal.
managing director said the project is
already off to an exciting start with the
first custom-built ship preparing to load
its first cargo, which will be shipped to
Sinopec.
A A34 OIL & GAS ustral SIA MARCH/APRIL 2015 www.oilandgasaustralasia.com
Total named operator of Elk PRL15 partner InterOil reportedly held
negotiations early last year with Exxon-
Antelope after arbitration ByMarieRYAN Mobil regarding an anticipated farm-
in deal to produce the field, however
Legal action over one of Asia’s largest around 5.3tcf of raw gas and 75 million talks with the US super major failed to
appraised gas fields, Elk and Antelope barrels (mmbbl) of associated liquids. materialise.
in Papua New Guinea’s onshore oil and Oil Search’s involvement in ExxonMo- In December a deal with French major
gas Gulf Province, has come to an end bil’s nearby US$19 billion PNG LNG Total was announced with the company
with Oil Search and InterOil reach- Project and comments from the com- buying a 61.3 per cent share and taking
ing an amicable agreement to move pany stating the Elk/Antelope Project over as operator from InterOil who now
forward with French major Total as could be developed more quickly and own 14.3 per cent of the Elk/Antelope
operator. economically with Exxon are noted as project.
The legal fued over Elk/Antelope has reasons why the matter ended up in Terms of the Total deal include the
caused PNG focussed mid-cap Oil front of the International Chamber of French company agreeing to make
Search to seek arbitration over the issue Commerce arbitration panel in Singa- further payments depending on the re-
of who should act as operator of the pore. source certified size of Elk/Antelope at
project after the company attempted to Analysts at Bernstein’s pointed out final investment decision (FID) and first
assert its contractual rights over the Pe- Exxon’s potential involvement in Elk/ cargo milestones. Should the resource
troleum Retention Licence 15 (PRL15) Antelope posed material risks, with the be determined at 7.1 Tcf of gas, the
farm-in agreement. delay of PRL15 in favour of PNG LNG certification payment would be around
The company purchased a 22.835 per expansion and the possible restrictions $580 million, taking the total return to
cent stake last year for US$900 million on the size of the Elk/Antelope plant to InterOil, including all other contingent
in the Elk/Antelope field that is estimat- comply with Exxon’s higher threshold payments, to $1.62 billion. §
ed to hold 2C contingent resources of for reserve certification, or InterOil
being forced to feed gas into PNGLNG.
The Papua takes first shipment By Marie RYAN
The first PNG LNG Project cus- “The arrival of this ship supports our PNG Limited, the operator of the PNG
tom-built ship, The Papua, arrived at objective to safely and reliably deliver LNG Project.
marine facilities in February to begin LNG to our customers,” Mr Barry said. In 2011, Exxon Mobil Corporation and
cool down and loading of its first LNG The Papua is owned by Aquarius LNG MOL selected Hudong-Zhonghua Ship-
cargo. Shipping Limited, which is a joint ven- building, a subsidiary of China State
The vessel recently christened by Mrs ture with Mitsui O.S.K Lines (MOL), Shipbuilding Corporation, to build two
Lynda Babao O’Neill is a 172,000 cubic China Shipping Group, and Sinopec. LNG carriers in China for the PNG
metre, 290-metre-long LNG carrier MOL will operate the ship on behalf of LNG Project. The Papua is the first of
beginning its service on a long-term the PNG LNG venture and deliver car- the ships to be built, with the other
charter with the PNG LNG Project, goes under the direction of ExxonMobil scheduled for completion in 2016. §
providing LNG transportation to major
customers in Asia. The Papua is the
largest liquefied natural gas carrier ever
to be built in China.
Andrew Barry, ExxonMobil PNG The Papua at the PNG LNG marine terminal.
managing director said the project is
already off to an exciting start with the
first custom-built ship preparing to load
its first cargo, which will be shipped to
Sinopec.
A A34 OIL & GAS ustral SIA MARCH/APRIL 2015 www.oilandgasaustralasia.com
