Planned Papua LNG Project May Create 10,000 Construction Jobs in 2018

Planned Papua LNG Project May Create 10,000 Construction Jobs in 2018
Total is progressing work on the Papua LNG Project in PRL 15 in Papua New Guinea and construction is expected to commence in 2018, creating up to 10,000 jobs.

InterOil Corp. reported Friday that field operator France's Total S.A. is progressing work on the Papua LNG Project in Petroleum Retention License (PRL) 15, Papua New Guinea (PNG) and construction of the development is expected to commence in 2018, creating employment for up to 10,000 persons, the firm said Friday when announcing financial results for the first quarter of 2016 (1Q 2016) ending March 31.

The PRL 15 joint venture is nearing the final stages of the Elk-Antelope appraisal program, with the Papua LNG (liquefied natural gas) project’s basis of design work expected to progress to front-end engineering and design work next year.

InterOil revealed that Total has indicated during a visit to the country in mid-April that the Papua LNG Project remained a top priority for the firm.

“We continue to make significant progress executing our strategy and advancing the development of the Elk-Antelope fields," InterOil Chief Executive Dr Michael Hession said in the press release.

Meanwhile, InterOil said an extended well test of Antelope-5 earlier this year flowed a total volume of 760 million standard cubic feet of gas (MMscf) over 14 days, with the well then shut-in for 16 days to record the subsequent pressure build-up. The Antelope-5 well flowed at over 57 million standard cubic feet gas per day (MMscf/d) for the majority of test through two parallel 48/64 inch chokes.

"Test results supported previous interpretations of excellent reservoir quality and well deliverability. In addition connectivity between Antelope‐5 and Antelope‐1 was confirmed. Significantly, no barrier, such as a western bounding fault, could be seen on the flow test."

Interoil added that "strong connectivity is encouraging and supports a simpler and lower cost LNG development."

Looking ahead, the firm revealed that the PRL 15 Joint Venture would make a decision to drill Antelope-7 on the western flank of the Antelope field in the June quarter to identify additional multi trillion cubic feet equivalent (Tcfe) resources, with site preparation continuing at the proposed Antelope-7 well pad.

Upon completion of the appraisal program, 2 independent certifiers will take 4 to 6 months to determine the resource size in the field. The company said if the PRL 15 parnters decide not to drill Antelope-7, the certification process would then be implemented with Antelope-6 being the last well in the appraisal program.

According to Oil Search Ltd., the PRL 15 Joint Venture has reached agreement to locate the LNG plant site at Caution Bay, adjacent to the Exxon Mobil Corp.-operated PNG LNG Project site to maximize the opportunity for potential synergies with the latter. Meanwhile, the upstream Central Processing Facility will be located in PRL 15, close to the Purari River, while the approximately 46.6 mile (75 kilometer) onshore and 164.7 mile (265 kilometer) offshore pipeline routes for the separate gas and condensate pipelines have been determined.

InterOil owns a 36.5375 percent interest in PRL 15, with Total and Oil Search holding 40.1275 percent and 22.8350 percent stake in the block, respectively.


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