Mediation process ongoing

 The arbitration process disputing the validity of sale by an InterOil subsidiary of a stake in petroleum retention license (PRL) 15 to a subsidiary of Total SA Group remains ongoing, Oil Search says. 

The company said the transfer, as first announced late last year, was subject to consent and pre-emptive rights under the joint venture operating agreement (JVOA). 

The arbitration, instigated by Oil Search to ensure that JVOA rights are respected, had been preceded to a hearing in London in four months’ time.

The company said the decision from the arbitration is expected during the first quarter of next year.

The PRL 15 is a key part of Oil Search’s portfolio of value-adding growth opportunities in the country.

The company is looking forward to utilising its extensive in-country operating experience to add further value to the asset.

Its objective was to develop Elk/Antelope in most timely and capital efficient manner, to realise the full value of this material gas resource and other potential gas within PRL 15, for the benefit of all its stakeholders.

The PRL 15 joint venture began preparations to drill two appraisal wells on Elk/Antelope gas fields including a possible high potential exploration well.

OSL stated that preliminary work on the concept selection studies, to define the optimum LNG development scenario for the resource, also commenced. 

Managing director Peter Botten said Oil Search has worked with PRL 15 operator, InterOil, on three main streams of technical work. 

He said these comprised an appraisal programme on the Elk/Antelope field, further exploration within PRL 15 and a concept select process.