Papua LNG Construction Planned to Start in 2018
InterOil last week said construction of Papua LNG is expected to commence in 2018.
The PRL 15 joint venture, operated by Total SA of France, is nearing the final stages of the Elk-Antelope appraisal program. The Papua LNG project’s basis of design work is expected to progress to front-end engineering and design work in 2017, InterOil said on May 13 while announcing first quarter results. Elk-Antelope, Asia’s largest undeveloped gas fields, is located in the Gulf province of Papua New Guinea.
InterOil Chief Executive Dr Michael Hession said: “We continue to make significant progress executing our strategy and advancing the development of the Elk-Antelope fields. InterOil is poised to benefit from development of the Papua LNG Project and to monetize InterOil’s assets for the benefit of all InterOil shareholders.”
Site preparation continues at the proposed Antelope-7 well pad for a minimal regret cost, the company said.
Total, InterOil and Oil Search are partners in PRL 15.
Late last month, Oil Search said that integration of PNG LNG project and the proposed Papua LNG project would be beneficial for both the projects in current low energy price environment.
Oil Search has interests in both ExxonMobil operated PNG LNG project, which is due for expansion, and Total operated Papua LNG project, which is based on development of the Elk-Antelope gas fields.
The company believes use of existing infrastructure and the co-location of plant sites would help drive capital efficient investment, cost and operational synergies and schedule acceleration, maximising returns for all stakeholders, including the PNG government, landowners and co-venturers.
Loss shrinks
InterOil recorded a net loss of $17 million for the quarter ended March 31, 2016, compared with a net loss of $21.9 million in the same quarter last year.
The company reduced its expected 2016 expenditure guidance to a range of $155 million to $170 million, with most spending focused on the Papua LNG project..