Horizon's Plan for PNG Project Rejected
Australia-listed Horizon Oil said April 4 that its development plan for the PRL 21 in Papua New Guinea (PNG) has not been accepted by the country’s petroleum minister.
Horizon operates the Elevala and Ketu fields (PRL 21) in PNG, holding a 30.15% interest. Horizon Oil and its joint venture partners submitted a petroleum development licence application in respect of the Elevala and Ketu fields in March 2014 (APDL 12) in accordance with the conditions of the licence.
“The PRL 21 licensees have received correspondence from the PNG petroleum minister in respect of the development plan for the fields. The minister has invited the PRL 21 licensees to propose a new or varied development plan indicating that his department will not be able to approve the current form of the development plan submitted with APDL 12,” Horizon said.
The development plan, as submitted with APDL 12, envisages a phased development, initially with condensate recovery and re-injection of dry gas, to be followed by gas sales at a later date once a market for it has been found.
According to the company since APDL 12 was submitted, it has evaluated various ways to market the gas. These include Western LNG, a standalone greenfield LNG development. It would develop about 2.2 trillion ft3 of gas in the Western Province and pipe it 490 km using an onshore gas and condensate pipeline, for liquefaction at a 1.5-2mn metric ton/year liquefaction facility offshore Daru.
Horizon has also considered third-party access to the proposed P’nyang pipeline to be constructed as part of ExxonMobil’s PNG LNG expansion project in accordance with the state’s proposed Natural Gas Policy.
“We anticipate further discussion with the minister and his department regarding our proposed development plans. Horizon Oil’s objective is to realise a commercialisation pathway for the Elevala and Ketu fields that is mutually acceptable to the state and the PRL 21 licensees including facilitating an open dialogue with the state and the proponents of the PNG LNG expansion project on a commercialisation pathway for the fields by way of third-party access to key infrastructure,” it said.