Further strengthening NGE with nearology....InterOil, Mitsui...

Further strengthening NGE with nearology....

InterOil, Mitsui team up on condensate stripping plant

Bevis Yeo
Friday, 16 April 2010

INTEROIL has signed an agreement with Japans Mitsui & Co for the joint funding and operation of preliminary works for a proposed condensate stripping facility at InterOils Elk and Antelope fields in Gulf Province, Papua New Guinea.



The agreement covers all work required to take the project through the front-end engineering and design phase up to the point of a final investment decision. Mitsui will carry InterOil through its half share of the costs.

InterOil said the project was aimed at processing 400 million cubic feet of gas to yield about 9000 barrels of condensate per day. Dry gas will then be reinjected into the reservoir for storage until the proposed Liquid Niugini Gas LNG facility has been built.

When in production, the condensate project will provide a stable platform of early cash flow, enhancing the benefit to partners in our proposed LNG project, InterOil chief executive Phil Mulacek said.

The company has flowed record-breaking amounts of gas during testing, with the Antelope-2 well producing at rates of 705MMcf of gas and 11,200bbl of condensate per day during testing late last year.


Story found here...

http://www.pngindustrynews.net/StoryView.asp?StoryID=1134613

That sounds pretty big too me.
Funding through to front end and final investment decision. Mitsui will carry InterOil through its half share of the costs.

Thoughts?
Antelope is about 80klms South East of PPl 277.

So much action in this area right now. Asias bit to secure future gas supply at todays rate!