THE liquid project to produce gas condensate at the Elk-Antelope fields in Gulf province is being carried out to fast-track the proposed liquefied natural gas (LNG) project.
InterOil Corp’s manager for community affairs (corporate) Geoff Hiatt revealed this yesterday.
One of InterOil directors Christian Vinson said liquid project was also known as “liquid stripping”.
Mr Hiatt said this was a process whereby water from the drills at the well was cooled and moved out to obtain gas condensate while the gas is re-injected back into the ground.
Meanwhile, InterOil’s midstream liquefaction segment posted a net loss of US$2.5 million (K6.7 million) for the quarter, as it spent this money on its share of expenses incurred by the PNG LNG joint venture during the quarter to progress the LNG project.
The downstream segment derived a net profit of US$3.4 million (K9 million) , compared with a loss of US$0.9 million (K2.4 million) in the third quarter of last year.
During the third quarter of this year, refined product sales volumes totalled 154.9 million liters against 138.0 million liters during the same period last year.
Increase in gross margin was mainly due to the positive effect of product price movements as applied to the inventory sold during the period.
While the midstream refining business generated a net profit of US$3.8 million (K10.1 million), compared with a net profit US$12.7 million (K33.9 million) for the same quarter last year.
In a statement to the Port Moresby Stock Exchange (POMSox), InterOil said throughput averaged 19,657 barrels per day in the second quarter this year against 22,463 in the same period last year.