HORIZON Oil is assessing its options for the development of the Elevala/Tingu and Ketu onshore gas condensate fields in Papua New Guinea’s Western Province.
The company, which holds an operating 27 per cent stake in PRL 21, completed a pre-feasibility study for a greenfield mid-scale LNG project in the Western Province during the March quarter of 2015, in association with Osaka Gas.
“Shortlisted options will be evaluated through the course of a feasibility study scheduled to be completed in late 2015,” Horizon said.
In its AGM presentation, project partner Kina Petroleum said Horizon was “aggressively reviewing contractor pricing and operating philosophy for the project.”
“The development plan remains focussed on Kiunga as the point of export for the liquids, and the compression infrastructure established for gas reinjection during phase one of the project will be an important investment for future gas exports either to the east or to a port in the southern part of the Western Province.”
The Tana seismic survey, acquired in PRL 21 in the second half of 2014, had been integrated with existing seismic control to better define the Elevala/Tingu and Ketu structures and to facilitate stratigraphic modelling.
“A series of workshops have been initiated by the operator in an effort to prepare a PRL 21 project map that will be used for final reserve determination and placement of development wells,” Kina said.
At the same time, Horizon received welcome news from the participants in the PNG LNG project, concerning the P’nyang field, located roughly 70 kilometres to the north of the Stanley, Elevala and Ketu fields.
The PNG LNG parties told Horizon during the quarter that they had signed an agreement with the PNG Government providing for the award of development and pipeline licences for the P’nyang field, enabling a later expansion of the PNG LNG project.
Horizon said that under the agreement, a final investment decision for an additional LNG train is to be taken by the end of 2017 at the latest.
“Horizon regards this development as a promising alternative commercialisation pathway for its substantial gas resources in the Western Province foreland.”
“A scheme with a near shore plant at Daru Island is the leading concept… However, the opportunity to participate in a brownfield LNG development by way of aggregation of Horizon Oil’s gas fields with those of other operators will remain an attractive proposition.”