Horizon Oil Ltd., Sydney, has increased its interest in the total certified resources in the western foreland fields in Papua New Guinea.
The company now has an overall 28% share of the 2-2.5 tcf of natural gas and 60-70 million bbl of condensate in these fields.
Interest changes in individual fields includes an increase to 30.15% in Elevala-Tingu and Ketu; a newly acquired 20% interest in Puk Puk and Douglas; and a reduction to 30% in Ubuntu to provide portfolio balance.
Horizon and its partner Repsol SA now operate all the relevant licences and together hold 70% of the total gas resource to be aggregated to underpin the proposed 1.5 million-tonnes/year Western LNG Project.
At Elevala-Tingu and Ketu, which lies in retention lease PRL 21, Horizon acquired its additional 3.5% interest from Mitsubishi Corp., which is divesting its upstream interests in Papua New Guinea.
The new holding in retention lease PRL40—Puk Puk and Douglas—is the result of an exchange of 20% of Horizon’s 50% interest in retention lease PRL 28—Ubuntu—for 20% of Kumul Petroleum Petroleum Holdings’ interest in PRL40.
The latter deal is conditional on approvals from the Papua New Guinea government. Horizon said the cash cost of the former deal is confidential.
The Western LNG Project plans a location near Daru Island on the coast near the mouth of the Fly River. Foundation gas is planned to come mainly from Elevala-Tingu and Ketu fields. The Puk Puk and Douglas fields are considered to be important contributors later in the project life to extend the production plateau.
Brent Emmett, Horizon chief executive officer, says the changes to the company’s portfolio provide an optimal balance. The 20-30% interests in the discovered fields give a meaningful interest in Western LNG, yet remain manageable from a funding perspective.
In addition, the company’s 80-100% interests in its four Papua New Guinea exploration licences—PPLs 372,373,430, and 574—provide scope for farmouts to reduce exposure to cost and exploration risk. The exploration acreage is near and on trend with existing discoveries.
