InterOil lets contract for plant at Elk-Antelope fields

InterOil Corp. has signed an agreement with Japan’s Mitsui & Co for the joint funding and operation of preliminary works for a proposed condensate stripping facility to be constructed at InterOil’s Elk-Antelope fields in Papua New Guinea’s Gulf province.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Apr. 19 -- InterOil Corp. has signed an agreement with Japan’s Mitsui & Co for the joint funding and operation of preliminary works for a proposed condensate stripping facility to be constructed at InterOil’s Elk-Antelope fields in Papua New Guinea’s Gulf province.

The agreement involves all work required to move the project through front-end engineering and design to a final investment decision. Under the deal, Mitsui will carry InterOil for its 50% of the costs.

The plant will be capable of processing 400 MMcfd of gas to yield about 9,000 b/d of condensate. The plan is to reinject the dry gas back into the reservoir for reproduction once the proposed Liquid Niugini Gas LNG facility has been built.

InterOil says the early cash flow from condensate will provide a stable financial platform for the LNG project and enhance the benefits of the project to the LNG joint venture.

Antelope field flowed at record levels last year when the No. 2 well recorded rates of 705 MMcfd of gas plus 11,200 b/d of associated condensate.

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