LONG time Papua New Guinea oil and gas explorer Horizon Oil has added to its already significant gas assets there through separate deals.
The company’s interest in the in the total certified resources contained in PNG’s Western Foreland fields of 2.0 – 2.5 tcf gas and 60 – 70 mmbbl of condensate has been increased to about 28%.
Horizon and Western Province project partner Repsol now operate all the licences and hold 70% of the total gas resource to be aggregated to underpin the proposed 1.5 million tonnes per annum (mtpa) Western LNG project, facilitating the planned multi-licence development in one of the world’s premier locations for LNG developments.
The new deals follow the company’s announcement in January 2017 that it had acquired a 50% interest in, and operatorship of permit PRL-28 (containing the Ubuntu field), which lies adjacent to its PRL-21 further. In a further extension to that deal the company has:
– Acquired an additional 3.15% interest in PRL-21 (which contains the Elevala/Tingu and Ketu fields) as a result of Mitsubishi Corporation divesting its upstream assets in PNG; and
Exchanged a 20% interest in PRL-28 for a 20% interest in PRL-40 (Puk Puk and Douglas fields) in a trade with Kumul Petroleum Holdings, PNG’s national oil company. Completion of this transaction is conditional only on customary PNG Government approvals.
Horizon CEO, Brent Emmett, said that as a result of these transactions, the fompany holds material working interests in all the appraised fields that will comprise the Western LNG gas aggregation project.
“Puk Puk and Douglas fields will be important contributors to the gas aggregation later in the project life, extending the production plateau significantly,” Mr Emmett said.
“We are pleased to be able to acquire a 20% interest in these fields in exchange for 20% of our interest in the Ubuntu licence, where we were overweight, in a trade agreement with Kumul Petroleum Holdings. As a result of this and other recent transactions, Kumul will hold interests in Stanley, Ubuntu, Puk Puk and Douglas fields and, as the national oil company, we expect they will bring considerable strategic value to the gas aggregation project.”