|Development and predevelopment|
|Horizon Oil interest|
|PDL 10, Stanley field||30%|
|PRL 21, Elevala/Tingu and Ketu fields (Operator)||30.15%|
|PRL 28, Ubuntu field (Operator)||30%1|
|PRL 40, Puk Puk/Douglas||20%1|
|1 Percentage participating interests are calculated after the acquisition of a 20% economic interest in PRL 40 and divestment of a 20% economic interest in PRL 28 occurring subsequent to 30 June 2017, subject to customary PNG government approvals.|
WESTERN LNG WILL INVOLVE DEVELOPMENT OF THE APPRAISED WESTERN PROVINCE GAS RESOURCES VIA PIPELINE TO A GAS LIQUEFACTION FACILITY LOCATED NEAR DARU ISLAND.
During the year, the Company and its joint venture partners progressed feasibility studies for the proposed 1.5 mtpa Western LNG gas aggregation project. The foundation gas volumes will be provided by the appraised condensate rich gas fields of Elevala/Tingu and Ketu (PRL 21), Stanley (PDL 10) and Ubuntu (PRL 28), with the Puk Puk/Douglas (PRL 40) lean gas fields providing later life gas volumes and a potential hub for other regional gas discoveries such as Kimu (PRL 8). Western LNG will involve development of the appraised Western Province gas resources via pipeline to a gas liquefaction facility located near Daru Island and export of LNG and condensate from Daru, with gas and LPG made available for domestic consumers at appropriate points on the pipeline.
In the coming year, the Company will continue to progress planning, design and engineering work for the three key elements of Western LNG – the upstream processing facilities, the gas and condensate export pipelines to Daru Island and the near-shore modular liquefaction facility.
In addition to the foregoing activities, Horizon Oil engaged with the PNG national oil company, Kumul Petroleum Holdings Limited (Kumul), to provide input on planning for Kumul’s initiative
of an open access pipeline that would facilitate the commercialisation of several undeveloped gas accumulations in Western Province, to be called the Western Pipeline.
In the latter part of the year, Horizon Oil executed a series of transactions strengthening the Company’s strategic position in the appraised gas fields composing the proposed 1.5 mtpa Western LNG gas aggregation project. Horizon Oil increased its interest in Elevala/Ketu (PRL 21) by 3.15% on the acquisition of Mitsubishi’s interest, acquired 50% of the Ubuntu field (PRL 28) and then traded 20% of its Ubuntu interest for a 20% interest in the Puk Puk/Douglas fields (PRL 40), acquired from Kumul. The Company now owns material interests in all fields that will comprise the gas aggregation scheme and operates the core PRL 21 fields.
The recent regional consolidation of ownership of gas-condensate resources also saw the entry of Kumul as a significant working interest holder in the region, indicating strong PNG Government support for the commercialisation of Western Province gas fields.