In a recent media release, Oil Search announced possible cooperation and integration of the next phase of LNG development, with Total (SA) and ExxonMobil.
Speaking to Loop PNG, Botten says the gains from the cooperation will benefit all parties, including the landowners and PNG.
“We believe that especially in this environment of low commodity prices that if your able to cooperate between the two projects in various ways that you can save money, save capital costs and accelerate the development, all of which adds value to us and more importantly adds value to PNG,” said Botten.
Once the acquisition of InterOil by ExxonMobil is completed, which is awaiting clearance from the Supreme Court of Yukon in Canada, discussions are expected to begin on a cooperative development of the Elk Antelope and P’nyang gas fields.
Oil Search believes there is sufficient gas resource in the Elk-Antelope and P’nyang gas fields to underpin possibily three trains if planned appraisal and exploration drilling is successful.
According to a recent media statement by the company. “Building these trains on the PNG LNG plant site and sharing downstream facilities would result in considerable capital savings and would materially improve operating efficiencies, generating superior returns for Oil Search shareholders, as well as for other stakeholders, including the PNG Government and local landowners,”
Botten said they’re looking forward to very constructive dialogue.
“This is a tough environment in which were try to build things, do it efficiently, do it effectively and cooperate which will lead to more value for everybody,” he said.