Growth in Papua New Guinea’s oil and gas industry is set to continue following execution of a project agreement between the developers of the Stanley gas condensate project in the country’s Western Province and the Independent State of PNG.
The Asia-Pacific nation has been targeted by several of the world’s energy giants in the past decade, headlined by the Exxon Mobil Corp.-led development of the PNG LNG project near the country’s capital, Port Moresby.
ExxonMobil announced in April that production at the $19 billion project had started ahead of schedule and first cargo of LNG would be exported to Asia by mid-2014.
In Western Province, another wave of growth is emerging, which may eventually lead to proposals for development of another LNG project in the region.
The prospect of this moved a step closer in April with the PNG Government’s execution of the Stanley project agreement, paving the way for formal approval of the Stanley project; a joint venture between Canada’s Talisman Energy Inc. (40 percent), Australia’s Horizon Oil Ltd. (30 percent), and Japan’s Osaka Gas (20 percent) and Mitsubishi Corp. (10 percent).
Kelvin Bramley, Horizon’s Chief Company Representative in PNG, told Rigzone the construction phase at Stanley would now “start in earnest” and was expected to span about two years before production commenced in mid-2016.
The $300 million project has a forecast life of 20 to 25 years, and will start life as a condensate recovery operation with forecast output of 140 million cubic square feet of gas a day from two production wells to yield about 4,000 barrels of condensate.
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