Bullish talks about oil, gas at forum

OIL and gas industry leaders talked bullishly about multi-billion-dollar investments in PNG yesterday as companies ramp up exploration and development of its gasfields.
In a swipe at the federal government’s contentious proposed resources super profits tax, they said how positive it was the PNG Government, unlike Australia, had delivered long-term fiscal regime stability.
Oil Search, Esso Highlands and InterOil gave presentations to wrap up the three-day Australia-PNG business forum in Townsville, painting a very rosy future for development of the country’s gas resources.
It was also highlighted Townsville company Curtain Bros was playing a leading role in the provision of civil works for the US$16 billion (K40 billion) PNG liquefied natural gas (LNG) project being led by Exxon subsidiary Esso Highlands.
Esso Highlands managing director Peter Graham told the forum Curtain Bros was working with West Australian company Clough Ltd to deliver infrastructure in the upstream gasfield portion of the project in the PNG Southern Highlands and was providing similar works around the LNG plant site near Port Moresby.
Early works started last year and was now ramping up on construction of roads, bridges and camps in readiness for plant and pipeline contractors to mobilise in the third quarter of this year.
“At this point in time we are working at some 20 sites from Mendi west to the Hides gasfield, south to Gobe and at the LNG plant site,” he said.
‘’We have something like 2,000 workers already working on the project,” Graham said, adding an 800-bed camp was being built around the LNG plant site in readiness for construction of an 8,000-bed camp to house workers.
In another development, InterOil with Mitsui is planning to develop a condensate stripping facility and LNG plant to capitalise on InterOil’s Elk and Antelope gasfields near Gobe.
InterOil investor relations vice-president Anesti Dermedgogiou told the forum of the ‘’unbelievable’’ world record flow achieved at its Antelope-2 well late last year.
Dermedgogiou said gas industry stalwarts were amazed as the well flowed more gas in one day than what most wells flowed in a lifetime of operation.
‘’You felt the earth rumble beneath your feet – it was something unbelievable,’’ he said.