A PARTNER in the Pandora reef gas discoveries off the coast of Papua New Guinea says it is likely gas from the field will be combined with that of other discoveries.
In its quarterly statement, Kina Petroleum said there were three development options for the Pandora field – with aggregation with other offshore discoveries and recent onshore discoveries in the Gulf Province chief among them.
“KPL views this as an increasingly likely development scenario as Antelope, Triceratops and possibly Bobcat and Raptor move towards development,” the company said.
“Aggregation with other Western Province gas assets remains an obvious option and was the original premise for acquiring KPL’s 25% interest in PRL 38.”
This goes against the proposal championed by majority owner Cott Oil & Gas of securing a specialist midstream partner to provide it with a floating gas liquefaction vessel – to liquefy and offload any gas production.
This, Cott said in its quarterly announcement, was the option pursued by Exmar Marine, the developer of the Caribbean floating liquefied natural gas (FLNG) facility, and Ophir Energy in the development of its Equatorial Guinea FLNG project.
Kina said this option would see the floating LNG operator absorb the capital component of the development.
“This off balance sheet approach is attractive but the economic impact of lower oil and gas prices will need to be addressed,” the group said.
The third option was a stand-alone platform development using a second hand jack-up rig.
“In the current oil producing environment this concept may prove attractive as a large amount of North American hardware is moth-balled as a result of decreasing activity levels and fields being shut-in,” Kina said.
Cott Oil & Gas said the takeover of Talisman Energy by Repsol was expected to be completed within the next few months.
“Talisman is the operator of the Pandora joint venture, and this event will establish some clarity on the future direction of the project,” the group said.
Talisman holds a 25% stake in PRL 38, while the remaining 10% is held by Australia-based Santos.
“In the event of a change of strategy by some of these participants, KPL is well placed to build its position and further influence the development options for PRL 38,” Kina said.