Govt approves project

 By GYNNIE KERO

THE Government has approved Horizon Oil’s Stanley gas condensate development project in Western.

Petroleum and Energy Minister Nixon Duban intends to grant a petroleum development licence and pipeline licence for the project and will sign a gas agreement with Horizon Oil covering the project’s fiscal terms and commitments to local content this week.

In a statement Duban said the project leads the way in the development of a number of smaller gas fields in Western. “Petroleum prospecting licences have been issued for exploration in almost all provinces of PNG. Madang province is the first of what is called a frontier area where gas has been discovered outside of the established petroleum streams such as Southern Highlands, Hela, Gulf and Western,” he said.

Granting of the development licence is the final step in completing Horizon Oil’s sale of 40 % of its PNG asset to Osaka Gas. 

Horizon Oil Ltd PNG chief company representative Kelvin Bramley yesterday said this would trigger the transfer of the balance of the sale proceeds plus adjustments of approximately US$77 million (K207 million) in total to the company (Horizon Oil).

He said the sale was in relation to Horizon Oil’s PNG assets – not just PRL 4.

Osaka Gas acquired an interest in Horizon Oil’s PNG assets (including PRL 4) in May last year. 

Bramley said: “It is excellent news – not only for Horizon Oil and its Joint Venture partners, but for the people of the Western Province. 

“NEC approval of the Stanley Project and execution of the Gas Agreement followed by formal grant of the Development Licence by Minister Duban are key steps paving the way for the project development forum and for construction activity to get underway in earnest. This in turn of course will see project benefits start to flow to the local community.”

Duban has requested the licencees attend a formal ceremony for signing of the agreement on Thursday.