Horizon Oil-Osaka Gas tie-up lauded

 THE joint venture between Osaka Gas and Horizon Oil adds more to the gas project in Western, Kina Petroleum Ltd managing director Richard Schroder says.

He said this after Horizon Oil sold 40% of its natural gas assets in Papua New Guinea to Japan’s Osaka Gas for US$204 million (K450 million).

The sale marks the beginning of a 60-40 strategic alliance between Horizon and Osaka Gas, which is one of Japan’s largest utility companies.

As reported by Radio New Zealand last Friday, “Horizon will receive US$74 million in cash up front from Osaka”.

Horizon’s chief executive Brent Emmett says that together, they have enough reserves to underwrite a planned plant in Daru, Western.

Schroder said: “We see it as very positive and welcome Osaka to the JV … we think it adds more certainty to a future Western gas project.

“The joint venture is an exciting development for PRL 21, giving it more gas focus. “It brings more confidence that a future Western’s dreamed project will come to fruition”.

Schroder said Osaka Gas will contribute to the effort to determine resource estimates for liquids and gas in PRL 21 and then to shift the resource estimates to commercial reserves.

“Demand for gas in Japan is better than five years ago … it is shifting its energy profile from nuclear to gas, which bodes well for PNG as reliable gas supplier to that market.”