Horizon Oil increases resource position in PNG’s Western Forelands
Australian petroleum exploration and production company Horizon Oil has increased its asset base in Papua New Guinea’s (PNG) Western Forelands area.
The company has increased its interest to about 28% in the total certified resources contained in the area, which yields 2.0 trillion cubic feet (tcf) to 2.5tcf of gas and 60 million barrels (mmbbl) to 70mmbbl of condensate.
Partnering with Spain’s Repsol, the company now operates all the licences, with a 70% interest in the total gas resource, which will be used to underpin the proposed 1.5 million tonnes per annum (mtpa) Western LNG project.
Horizon increased its interest in PRL 21, comprising Elevala / Tingu and Ketu fields, to 30.15% through the acquisition of an additional 3.15% interest.
Horizon Oil CEO Brent Emmett said: “Puk Puk and Douglas fields will be important contributors to the gas aggregation later in the project life, extending the production plateau significantly.
“Horizon Oil’s 20%-30% interests in the discovered fields will give us a meaningful interest in Western LNG, yet remain manageable from a funding perspective, taking into account the $130m milestone payment due on project final investment decision (FID) and also the funds to be reimbursed by the PNG Government should it elect to back-in to the project.”
Meanwhile, the company has agreed to offer a 20% interest in PRL 28 to PNG’s national oil company Kumul Petroleum, in exchange for a 20% interest in PRL 40, including Puk Puk and Douglas fields.
It has reduced its interest in Ubuntu field to 30% to provide portfolio balance.
The closure of the transaction with Kumul Petroleum is subject to approvals from the PNG Government.
Now that the resource position for the Western LNG project is complete, the company is set to advance the project.