kimu 1 png oil search and bg any thoughts

anyone any thoughts on the kimu 1 field in png ?

i see oil search has had a chat with bg of uk (old british gas)

kimu 1 in png is 28.57% owned by mos with oil search the major holder / operator. plus still other minority holders ?

fwiw

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PAPUA NEW GUINEA

Kimu Retention licence - PRL 8
Interest: 28.57% Mosaic Oil Niugini Ltd.
Operator: Oil Search Limited.
Expiry/and or renewal date: Awarded for a 5 year period expiring December 18th 2007 at which time application for renewal can be made.
Comment: The Kimu gas field has reserves in excess of 1 TCF of recoverable gas. It lies in the foreland of Papua New Guinea south of the Papuan Mountains and approximately 100 kms from a proposed gas pipeline route. Work was done during the year on the possibility of using this field for methanol production. Some of this was funded by Japanese companies Mitsubishi Gas Chemical Company Inc. and Itochu Corporation.


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Oil Search moots PNG gas plant
Email Print Normal font Large font Rod Myer, Energy Reporter
September 1, 2006

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Advertisement
AdvertisementOIL Search appears to be covering all its bases in the search for ways to develop international markets for its Papua New Guinea gas fields.

Just two days after Australian Gas Light hardened its attitude to building the $4 billion PNG-to-Australia pipeline, Oil Search has entered into an agreement with BG Plc (British Gas) to examine the viability of developing an export LNG processing plant in PNG.

Oil Search managing director Peter Botten said the LNG path would be an extra string to Oil Search's bow in PNG.

"BG has extensive global experience and a proven track record in the upstream development of gas fields. We see this initial investigation into LNG as highly complementary to our other gas commercialisation projects."

Despite the move coming so quickly after AGL poured cold water on the PNG pipeline, Oil Search said it had been looking at the option for some time.

"We've been talking to a range of people about LNG," spokeswoman Anne Diamond said.

It would take six to 12 months for investigations by Oil Search and BG to reveal whether LNG exports were viable.

The gas deposits being earmarked for possible LNG exploitation are not the same resource set aside for the Australian market if the PNG pipeline is built.

Oil Search has a total of 1 billion barrels of oil equivalent reserves in PNG and about 40 per cent of these are set aside for Australia.

Developing an LNG export business would enable Oil Search and its joint-venture partners to get gas to the market and earn returns, even if the PNG pipeline is shelved for a long time.

Demand for PNG gas in the Australian market may not develop as quickly as hoped due to increased competition from coal-seam gas deposits being developed in Queensland.

AGL, which has signed as a major customer for PNG gas if the pipeline is built, has also been investing in coal-seam gas.

Origin Energy chief executive Grant King said this week that proven deposits of the gas were growing strongly and some of the potential demand for PNG gas was related to industrial projects that have not been confirmed.

But the pipeline idea is not yet dead and promoters are looking at other options.

AGL, a 10 per cent partner in the upstream consortium that would supply gas to the PNG pipeline, also has an option on building the $4 billion piece of infrastructure with Malaysian group Petronas.

AGL recently suggested the upstream consortium, rather than it and Petronas, should finance the pipeline.

As a result, the consortium is looking at other options and consortium member Oil Search said discussions were being held with several infrastructure operators, both Australian and international, about building the pipeline.

With AAP

KEY POINTS

�¡Liquefied natural gas gives
Oil Search another potential international market for its

PNG fields.

�¡Oil Search is talking to British Gas to explore LNG's viability.