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Botten: Report indicates PNG LNG is world class

THE multibillion kina PNG LNG project has resources which are world class says Oil Search managing director Peter Botten.

Mr Botten was commenting on Oil Search’s 2016 Reserves and Resources Statement for 2016.

He said the major lift in gas reserves and resources that was reported is an excellent result.

He said this had been achieved after taking into account record production for the year of 105.8 billion cubic feet (bcf).

He said the increase in proved gas reserves at the PNG LNG Project is particularly significant for Oil Search and its co-ventures, as the project only contracts proven reserves (1P).

At present, 6.6 Million Tons Per Annum (MTPA) of LNG is sold under long term contract, while the project is operating sustainably at rates above 8 MTPA.

He said the increase in 1P reserves, which equates to 2.8 trillion cubic feet (tcf) on a gross basis, will provide the co-venture the potential to explore market opportunities to contract this material additional production, which is currently being sold on the spot market.

"Following the recent successful appraisal campaign at Antelope, we have reassessed our reservoir models for the Elk-Antelope fields in PRL 15.

This has led to a 254 bcf, or 21 per cent, increase in our share of Elk-Antelope 2C contingent gas resources, to 1,473 bcf, with 13 million barrels (mmbbl) of condensate," he said.

He said that on a gross basis, Oil Search’s gas volume of 6.5 tcf raw gas for Elk-Antelope is in line with those recently certified by NSAI (6.1 tcf raw gas) and Gaffney, Cline & Associates (6.9 tcf).

"Together with 2C contingent resources at P’nyang of 1,348 bcf (equivalent to 3.5 tcf dry gas on a gross basis), we hold very significant volumes of undeveloped gas resource, which we believe is more than sufficient to underpin at least a two train LNG expansion.

"At this stage, we have not assessed the potential resource size of our latest gas discovery, Muruk 1, as insufficient data is presently available and a fast-tracked appraisal programme is currently underway.

However, indications to date suggest no reasons why our pre-drill estimate, that Muruk could contain potential resources of 1 – 3 tcf, should be changed," he said.

Mr Botten said the reserves and resources reinforces the fact that the PNG LNG Project has a world class resource. Post Courier/ONE PNG
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