Oil Search & Syntroleum Launch Study for GTL Barge in PNG

Syntroleum Corporation

Syntroleum Corporation has signed an agreement to undertake a feasibility study with Oil Search Limited for a GTL Barge in Papua New Guinea (PNG). The conceptual design will include gas processing to extract natural gas liquids (NGL) in advance of the gas-to-liquids (GTL) section that will utilize the Syntroleum(R) Process and would produce a nominal 20,000 barrels per day of total liquids. The products will include ultra-clean diesel, naphtha and LPG. The GTL Barge design has been developed by Syntroleum over the last 2 years and is based upon design criteria first explored under contract with the U.S. Department of Defense and later adapted to commercial specifications (see URL after first paragraph). Syntroleum's 70-barrel Catoosa Demonstration Facility, which is currently operating near Tulsa, Oklahoma, is also contributing to the basis of design and catalyst performance demonstration for the GTL Barge.

Oil Search operates existing oil and gas production in PNG, and holds a large portfolio of developed and undeveloped gas. It is estimated that up to 170 mmscfd of natural gas feedstock will be required for the GTL Barge which will be located near the Gulf of Papua.

The GTL Barge feasibility study is a cooperative effort between Syntroleum and Oil Search and is expected to take 3-4 months. The study will include cost estimates for upstream development and pipeline transportation in addition to the GTL Barge. Alternatives for product marketing will also be reviewed. "This PNG project fits well with our strategy of helping commercialize gas resources with our GTL Barge technology," stated Jack Holmes, Syntroleum's President and Chief Operating Officer. "We look forward to working with Oil Search on this effort."

"This feasibility study is the first step in exploring yet another potential use for our substantial gas resources and complements other initiatives underway to develop a PNG in-country gas-based industry," said Peter Botten, Managing Director, Oil Search Limited.

Oil Search Limited is headquartered in Sydney Australia and is a major oil and gas developer in Papua New Guinea.

Syntroleum Corporation owns a proprietary GTL process for converting natural gas as well as other carbonaceous material like coal and petroleum coke into synthetic liquid hydrocarbons. The company plans to use its technology, as well as other third party gas processing technologies, to develop and participate in gas monetization projects in a number of global locations.