TotalEnergies signed a technical cooperation agreement with Lakes Blue Energy NL (formerly Lakes Oil), Sydney, regarding potential exploration of Cape Vogel basin permit PPL 560 offshore northern Papua New Guinea.
Under the terms of the agreement, Lakes will collect and provide to TotalEnergies outcrop rock and fluid samples from the Cape Ward Hunt and Cape Vogel Peninsula areas after which TotalEnergies will undertake at its own cost a technical work program of geological and geophysical studies.
Total will than have the option to undertake at its cost a Phase B work program, including seismic acquisition to delineate the offshore Buna prospect in preparation for drilling a well.
If this work program is completed, TotalEnergies has a further option to acquire a 75% interest in PPL 560 in which case Total would fund the first $30 million to drill the first well. Additional cost would be shared by the joint venture. Lakes will retain a 25% interest.
Buna, in relatively shallow water, is one of the largest undrilled structures in PNG with the potential to hold an estimated 3 tcf of gas. It is one of several large prospects and leads within the basin.