InterOil Corporation informed that the Papua LNG project attracted a lot of interest from liquefied natural gas buyers and investors.
InterOil Chief Executive Michael Hession said, “Following prime ministerial meetings between Japan and Papua New Guinea, Japan is considering placing Papua New Guinea on its priority list as a supplier of LNG.”
He added that in the last three months, Papua LNG joint venture initiated basis of design work and began discussions on LNG marketing and project financing.
With strategic Asian buyers seeking LNG contracts in the 2020s, InterOil and its partners are looking to develop the Papua LNG project to meet this window, where demand is forecast to exceed contracted supply, Hession said.
More drilling, costs cuts planned for 2016
In its drilling report, InterOil Corporation revealed that the Antelope-4 sidetrack-1 well in PRL 15 in Papua New Guinea has reached total depth.
Hession said wireline logging, which was underway, would help to determine the extent of high-quality dolomite and overall quality of the Elk-Antelope reservoir.
“The joint venture now intends to spud Antelope-6 in December this year as part of the appraisal program to define the resource for the Papua LNG project,” Hession said.
Antelope-6 is currently the last joint venture-approved appraisal well, but the joint venture is considering an additional appraisal well on the western flank of the Antelope field that could add an incremental volume of 1 to 3 Tcfe.
This could enhance InterOil’s certification payment from Total by $400 million to $1.2 billion, following the completion the well.
InterOil expects to reduce its corporate and associated costs by more than 50 percent in 2016, Hession said, adding that total expenditure for next year will be less than $200 million.
The company ended the third quarter with a $103.7 million loss primarily due to plugging and abandoning the Wahoo sidetrack well.
LNG World News Staff; Image: InterOil