Papua New Guinea Development
Horizon Oil is pleased to advise that it has increased to about 28% its interest in the total certified resources contained in Papua New Guinea’s Western Foreland fields of 2.0 – 2.5 tcf gas and 60 – 70 mmbbl of condensate. The Company and partner Repsol now operate all the licences and hold 70% of the total gas resource to be aggregated to underpin the proposed 1.5 million tonnes per annum (mtpa) Western LNG project, facilitating the planned multi-licence development in one of the world’s premier locations for LNG developments.
The Company advised in January 2017 that it had acquired a 50% interest in, and operatorship of, PRL 28 (Ubuntu field) adjacent to PRL 21. Further to that transaction, the Company has:
- Acquired an additional 3.15% interest in PRL 21 (Elevala/Tingu and Ketu fields) as a result of Mitsubishi Corporation divesting its upstream assets in PNG; and
- Exchanged a 20% interest in PRL 28 for a 20% interest in PRL 40 (Puk Puk and Douglas fields) in a trade with Kumul Petroleum Holdings, PNG’s national oil company. Completion of this transaction is conditional only on customary PNG Government approvals.
The cash cost is confidential but the Company’s cash position will not be materially reduced as a result of the strategic acquisitions, taking into account the consideration for the acquisitions and the near term exploration and development costs arising from the expanded resource base.
Horizon Oil’s previous and current licence interests after completion of the transactions are set out in the table below and licence locations shown on the map that follows.
|Licence (fields)||Horizon Oil interest (%)|
|PDL 10 (Stanley)||30.00||30.00|
|PRL 21 (Elevala/Tingu and Ketu)||27.00||30.15|
|PRL 28 (Ubuntu)||50.00||30.00|
|PRL 40 (Puk Puk and Douglas)||–||20.00|
|PPL 372 (exploration)||90.00||95.00|
|PPL 373 (exploration)||90.00||100.00|
|PPL 430 (exploration)||100.00||100.00|
|PPL 574 (exploration)||80.00||80.00|