PM welcomes gas player
The National, Wednesday October 8th, 2014
Prime Minister Peter O’Neill has welcomed the commitment of French company, Total, to advance the Elk-Antelope Liquefied Natural Gas (LNG) project in Gulf.
He received an update on the company’s national engagement from Total executives, which included Total’s vice-president Arnaud Breavillac, during their visit to Papua New Guinea.
O’Neill welcomed the executives and expressed his appreciation that the LNG project in the Elk-Antelope gas fields was on track.
He noted that the revised sales and purchase agreement between InterOil and Total in March paved the way for Total to bring its considerable LNG expertise to develop PNG’s second LNG project.
Total acquires 40.1% gross interest and brings its global expertise to developing PNG’s second LNG project
“Total will pay US$470 million (K1.14 billion) for a 42% interest (32.5% if the government executes its option to join the project) with a contingent payment estimated by Total at approximately US$590 million (K1.44 billion). The transaction remains subject to the approval of the PNG Government,” the firm said in a statement.
“Progress on Elk-Antelope gas fields in the East Papuan Basin is being made and Total is committed to working with the government, joint venture partners and stakeholders,” O’Neill said.
“Total is one of the largest integrated oil and gas companies in the world and has employees with expertise covering the broad spectrum of oil and gas industry activities.”
In a joint press statement released by Total and InterOil, following the signing of the revised sales and purchase agreement in March, Total’s exploration and production senior vice-president, Jean-Marie Guillermou said the agreement allowed the joint venture to proceed with confidence. “Elk-Antelope is a significant project in Total’s global portfolio and our presence in Papua New Guinea provides an ideal opportunity to grow our business in the Asia-Pacific region,” Giullermou stated.
Total had said its common objective and that of InterOil is to complete the delineation of the two discoveries and to continue to explore for new resources in the license area.
Depending on the results, this could lead to a final investment decision by 2016 for the development of the fields and the construction of a liquefaction plant located onshore of Gulf.
Total is the fifth-largest publicly-traded integrated international oil and gas company in the world with around 100,000 employees’ operating in more than 130 countries.