Flex LNG discusses floating LNG project

Norwegian company Flex LNG Ltd. said it is in advanced discussions with an Asian national oil company to join a floating LNG (FLNG) project off Australia.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Apr. 13 -- Norwegian company Flex LNG Ltd. said it is in advanced discussions with an Asian national oil company to join a floating LNG (FLNG) project off Australia.

Without naming the company, Flex said the proposed project will be a joint venture development involving one or more technical and commercial partners.

A possible pairing could be with Thailand's PTT Exploration & Production PLC (PTTEP), which plans to use an FLNG vessel to develop its gas assets in the Timor Sea. Last year PTTEP cancelled a heads of agreement with Golar LNG Ltd. for a joint project in Australia but said at the time it was still interested in developing its isolated gas fields off northern Australia.

In the meantime, Flex has been working with Samsung Heavy Industries Co. Ltd. to develop a floating production, storage, and offloading LNG vessel and has four ships incorporating liquefaction units already under construction in South Korea.

The company also has an option to acquire control of Jersey-based Minza Oil & Gas Ltd. that has 100% interest in permit JPDA 06-101A in the joint petroleum development area between East Timor and Australia.

The permit contains the one-well Chuditch gas discovery made by Royal Dutch Shell PLC in 1998. Minza acquired 800 km of 2D seismic data over the permit in 2009 and expects to drill one exploration well in the near future.

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