Central Province Governor Rufina Peter questioned the Minister for Petroleum and Energy, Kerenga Kua if a firm determination of gas reserve volume from the Elk/Antelope fields had been fixed and confirmed for future revenue.
In Parliament, she said Papua LNG recently lodged an application for petroleum development license to the Department for Petroleum and Energy ahead of its final investment decision.
Peter says in the Papua LNG Gas Project Agreement signed between the State and Project partners, the foundation gas volume to be provided from the Elk/Antelope fields is projected to be at 10.3 Trillion Cubic Feet TCF.
“It is very important to all stakeholders in the Papua LNG Project including the Independent State of PNG and its entities that a firm Gas reserve volume is determined and confirmed for future revenue, planning and budgetary purposes.
Governor Peter appealed to Minister Kua to pursue the matter with project developers to resolve the gas reserve volume if it has not been determined.
In addition, Governor Peter referred to the Liquid Production and Sales from the Elk/Antelope fields and asked Minister Kua, who the owners and beneficiaries of the sales and revenue are.
Minister Kua in relation to the first question on gas reserves stated, “The 10.3 trillion cubic feet (TCF) of Gas is the foundation volume for the purpose of Resource Contracts Fiscal Stabilization Act 2000. Our law requires the state to provide fiscal guarantee to mega resource project with a fixed time frame or a fixed amount or volume of resource to be extracted under that specific fiscal guarantee for that specific project in this cast the Papua LNG.”
Minister Kua went on to highlight that the 10.3 TCF is the highest estimate that JV Partners can provide of what the Elk/Antelope fields may hold and this volume is contracted under the Papua LNG Gas Agreement, to be produced and sold from the project fields.
Kua says since Total Energies took ownership of the PRL 15 License work towards ascertaining reserves has become clearer.
Kua revealed that his department has had very detailed technical consultation and workshops with Total Energies and the JV partners since 2022 on the sub-surface technical matters and 6.7 TCF 2P reserves is very responsible at this stage on the volume of the gas.
“As I have mentioned earlier in this Parliament ADPL has been launched, an Application for a Development Petroleum License has been lodged and detailed technical reviews are been undertaken by my department, which will lead to reserve certification, As I have been advised the department is satisfied with 6.2 TCF 2P reserves at this stage.”
Minister for Petroleum and Energy responded stating that the Elk/Antelope fields have a combined resource estimate in the range of 6.7 trillion cubic feet (TCF) gas 2P reserves including 98-120 million barrels of condensate so both of these have been estimated separately.
“The liquids are part of gas reserves in the ground and when produced they can be separated. The title or ownership to petroleum produced from the PDL passes to JV participants in proportion to their participating interests at the wellhead.”
Minister Kua concluded that for the APDL application, there are two applications for two separate pipelines. One pipeline for the gas and liquid and the other for the condensate to transport both separately from the processing facility to the PNG LNG Plant site to be further conditioned for sale.
The project JV partners including the state through Kumul Petroleum Holdings Limited (KPHL) and landowners through MRDC are owners of gas and liquid in proportion to their participating interest and will benefit from the sales.