Early this year,the state gaveInterOil until December to prover its worth to developthe second LNG project in Gulf. However,the Gulf Provincial Administration called for a new developer.
Dignitaries fromInterOil,the new developer toTAL,the Gulf Governor, Havila Kavo, and Minister for Petroleum and Energy, William Duma, gthered atthe Airways Hotel in Port Moresby today for the grand announcement.
toTAL is a French multinational integrated oil and gas company and one ofthe six “Super major” oil companies inthe world. Its businesses coverthe entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading.
Total is also a large-scale chemicals manufacturer and has its head office inthe West of Paris.
toTAL will now developthe Elk and Antelope gas fields inthe Beimuru district ofthe Gulf Province. These reserves are host tothe seconPNG LNG project.
Early this year,the provincial government called for a new developer becauseInterOil failed to honour its commitments tothe project and futher failed to honourthe MoA it’signed withthe state in December 2009 to make a final investment decision bythe 24th of June 2013.
Minister for Petroleum and Energy, William Duma, issued a 180 days ultimatum toInterOil to give a detailed account ontheir position. The Minister expressed confidence in this new investment and offeredthe provincial administration’s support inthe development ofthe project.
Minister Duma also advocatedthe national government’s agenda aboutthe development of downstream processing plants and gas powered electricity for rural electrification. He urged all stakeholders to work in unison for the benefit of everyone.
Among agreements include; fixed payments toInterOil of US$613 million on transaction completion which is expected inthe first quarter of 2014, and in addition tothese fixed amounts, variable payments for amounts in excess of 3.5 trillion cubic feet for the gas resource will depend on certification by two independent certifiers following up to 3 appraisal wells to be drilled in PRL 15.
Any payment is said to be made atthe first gas fromthe proposed Elk Antelope LNG facility. The program and facility is expected to be completed in 2015.
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