ExxonMobil, InterOil in talks over Papua New Guinea assets

InterOil Corp. and its joint venture partner, Pacific LNG Group, are talking with ExxonMobil Papua New Guinea Ltd. regarding development of Elk and Antelope gas-condensate fields.

The transaction has been discussed with the government, and any agreement would be subject to government approval. No financial terms were specified yet.

InterOil, Houston, and Pacific LNG are negotiating to sell ExxonMobil an interest that would be sufficient to supply gas to develop an additional LNG train at ExxonMobil's Konebada site.

InterOil said it is discussing whether gas from Elk and Antelope fields could support an expansion of ExxonMobil Corp.’s LNG project or a new gas-export facility.

Esso Highlands Ltd., an ExxonMobil subsidiary, plans to liquefy and ship gas from Hides, Juha, and Angore fields and associated gas from Kutubu, Agogo, Moran, and Gobe Main oil fields in the Southern Highlands thrust belt. The fields are expected to produce more than 10 tcf of gas and 200 million bbl of liquids in 30 years.

Ground was broken in 2011 for a 6.6-million tonne/year LNG plant 20 km northwest of Port Moresby, and early right-of-way work parallels the Kutubu oil pipeline. Santos Ltd. and Oil Search Ltd. have interests in the project (OGJ Online, Sept. 5, 2011).

InterOil's proposed LNG facilities in Gulf Province are to have a capacity of 5 million tpy of LNG. Operation is targeted for mid-2014.