OilSearch is anticipating talks to commence with Total SA (Total), about possible cooperation and integration of the next phase of the LNG development.
This will follow once ExxonMobil’s entry into the PRL 15 Joint Venture has been confirmed once its bid and acquisition of InterOil is completed.
OilSearch announced in a media release that ExxonMobil’s entry into the PRL 15 Joint Venture underscored the potential value that would be created by cooperation.
This would position OilSearch to benefit from a cooperative development, given its material interests in all the key gas resources, including PRL 3(38.5%), PRL 15 (23%) and the PNG LNG Project (29%).
Oil Search believes there is sufficient gas resources in the Elk-Antelope and P’nyang gas fields to underpin at least two PNG LNG-sized expansion trains, and possibly three trains if planned appraisal and exploration drilling is successful.
Building these trains on the PNG LNG plant site and sharing downstream facilities would result in considerable capital savings and would materially improve stakeholders including the PNG Government and local landowners.
Under all anticipated scenarios involving cooperation, two highly credentialed operators of the LNG Developments, ExxonMobil and Total, will be maintained in PNG for the next phase of development.
The anticipated scenario awaits the ExxonMobil’s acquisition of InterOil and clearance from the Supreme Court of Yukon in Canada.