Petromin slams InterOil’s over shift in gas devt plan

Business, Normal

The National, Wednesday 30th November 2011

PETROMIN Holdings Ltd yesterday revealed that it has invested almost K40 million (US$16 million) in the upstream exploration programme for the Elk/Antelope gas fields in anticipation of a large scale single LNG development plant.
In a statement yesterday, it expressed disappointment that developer InterOil Corp of Canada has deviated from the original 2009 project agreement without consulting the company.
However, it said it was prepared for a review of the agreement.
 “The board of Petromin Holdings Ltd is disappointed that InterOil has again not involved Petromin as the state nominee in its recent off-take agreement with Gunvor in respect of the Elk/Antelope gas fields,” board chairman Brown Bai said. 
Bai said in anticipation of the project specified in the project agreement which was a single, 7.6 million metric tonnes per annum to 10.6mpta capacity plant, Petromin invested US16 million in the upstream exploration programme and had an equitable interest in petroleum retention licence 15 (Elk Antelope).
“Petromin has therefore not been consulted on how Petromin’s share of the gas at Elk/Antelope is being committed,” Bai said.
“InterOil has not informed or consulted Petromin on the commercial terms of the MoAs that is has executed to date, including the off-take arrangement recently signed with Gunvor.”
He said his board believed that it was critical for the success of the project that a world-class operator “with proven track records of LNG development is again engaged in delivering the second LNG project for the country.”
“In light of recent developments, Petromin as state nominee in the Elk/Antelope LNG project looks forward to being involved with the state in any review of the project agreement,” Bai said.