THE DEVELOPMENT options for the gas discoveries in the Pandora Reef, offshore Papua New Guinea in PRL 38, are still to be decided, partners in the project have said.
Cott Oil & Gas holds a 40 per cent stake in the project which was operated by Talisman Energy before it was formally acquired by Spain’s Repsol Energy in May this year.
Cott said the completion of the takeover by Repsol was expected to provide some clarity on the future direction of the project, but added that it was in talks with partner groups considering other options.
“Cott confirms that it is in discussions with a number of parties relating to the commercialisation and/or other development of its interest in Pandora, and expects to advance these discussions in the current quarter,” it said in its March quarter announcement.
Cott has previously said it prefers the use of an offshore LNG development with a floating liquefaction vessel owned and operated by a midstream partner and leased to the gas owners on a tolling basis.
But Kina Petroleum, which holds 25% of the proejct, prefers aggregation with discoveries in the Western Province or with other discoveries in the Gulf region
“It has always been KPL’s view that gas from PRL 38 will be aggregated with reserves from other developments such as PRL 21,” it said in a presentation at its annual general meeting.
KPL said up to seven further reefs and a number of smaller sandstone gas targets had been identified in the Pandora gas field following a further review of 2D and 3D seismic data.
“The low oil price will see delays to the development of the gas fields but this should not detract from the long term value of the asset,” KPL said.
“Ultimate development of Pandora and any additional resource within PRL 38 will depend on achieving a higher oil price environment which will deliver upward pressure on LNG prices,” it said.
Santos holds a 10% stake in the field.