Govt, InterOil on common ground

Business, Normal
Source:

The National, Friday 02nd December 2011

THE government and InterOil Corp of Canada appear to have struck an agreement on the size and scale of a modified LNG project in the Gulf province, judging from presentations at the conference yesterday.
Petroleum Minister Duma told delegates that the National Executive Council’s decision on Sept 21 not to approve the staged development has not changed.
 “However, my department and I are working together with InterOil with a view to ensuring that the developments are consistent with the  project agreement of 2009,” he said.
“The state and InterOil remain committed to delivering the project that was agreed in the 2009 project agreement.
“I also expect InterOil to work together with the state nominee Petromin in delivering this important project.
“The state regards the InterOil project as the next project of national importance, and we stand ready to enter into dialogue with InterOil in an attempt to find a way forward during the next months,” Duma said.
InterOil’s Phil Mulacek told the conference that InterOil was working on bringing in a major LNG player to Gulf LNG and would deliver a project capable of producing 7.6 million tonnes per year of LNG – this is much more than PNG LNG project’s 6.6mtpa.
He said by adding additional trains, Gulf LNG could ramp up to produce 10.6mtpa which is much higher than PNG LNG’s projected expansion to only 10mtpa.
The minister told The National later that he wanted InterOil to work together with Petromin and arrive at an understanding.
He praised InterOil for its persistence to stay in PNG despite many challenges.
Duma said the company must deliver a project size, however re-scoped, as determined in the 2009 project agreement – between 7.6mtpa and 10.6mtpa.
Mulacek said the project had been modified to three stages of a modular stripping, fixed floating and a large LNG plant on-shore in Gulf province and would meet the project agreement production rate of 7.6mtpa which was more than the PNG LNG project.
He said financial investment decision was expected toward the end of the year or early next year.