LNG expansion in Papua New Guinea progressing

OIL Search Limited says in its third quarter report that work has been progressing on the next phase of the liquefied natural gas expansion in the country.
“Engineering studies are being carried out to evaluate a narrow range of potential development options for the Elk-Antelope and P’nyang gas resources,” the report said.
Key focus of these studies is on the configuration and capacity of LNG trains to be built, field phasing and the optimisation of the train configuration in terms of operating performance, capital expenditure and operating costs.
“Site preparation for the P’nyang South Two well was completed during the quarter, and the rig mobilised to site with drilling expected to commence shortly.
“Muruk gas discovery are now underway, with the well expected to commence drilling towards the end of the first quarter of 2018.”
While Oil Search believes there is already sufficient gas in P’nyang and Elk-Antelope to underpin an 8 MTPA expansion, given its proximity to Hides infrastructure, Muruk represented a potential low cost development.
“The fairway between P’nyang, Muruk and Hides has proven gas reservoir quality and gas charge. And Oil Search believes that given the exploration and appraisal success in this region, there may be potential for further discoveries and development that could underpin additional LNG capacity.”
Appraisal of the Kimu and Barikewa discoveries, expected to commence in early next year, will test the upside resource base of these fields and will help in the selection and optimisation of the most appropriate gas commercialisation pathway.
Several development and appraisal targets and near field exploration prospects have been identified in and around our producing oil fields.
These targets have the potential to add material oil resources and are commercially very attractive given the proximity to infrastructure.
The report said an extensive exploration, appraisal and development programme, comprising a range of oil and gas wells and seismic acquisition, was planned over the next few years.
“This programme has multiple objectives, including mitigating oil production decline from our mature oil fields, appraising existing discovered gas fields, to create optionality for LNG expansion and other commercialisation options, as well as exploring both known and frontier hydrocarbon provinces in PNG for reserve growth.”