P’nyang resource up by 84pc

THE resource size of the P’nyang field in Western has increased to 4.36 trillion cubic feet of gas, according to an announcement by ExxonMobil Corporation yesterday.
This is an 84 per cent increase from a previous assessment completed in 2012 and supports a three-train expansion plan for the PNG LNG plant site in Port Moresby.
The development concept, which would add about 8 million tonnes of LNG annually, would double the capacity of the existing LNG plant operated by ExxonMobil.
This will have one new train dedicated to gas from the P’nyang and PNG LNG fields and two trains dedicated to gas associated with the Papua LNG project.
ExxonMobil Development Company president Liam Mallon said the company would be working closely with joint venture partners and the government on the expansion proposal and the securing of required licenses.
“The increase in the estimated resource size of the P’nyang field helps illustrate the tremendous growth opportunities for our operations in PNG,” Mallon said.
“We are working closely with our joint venture partners and the government to progress the P’nyang field development proposal and secure the licenses needed to develop this world-class resource.”
“This investment would extend our gas pipeline infrastructure into the country’s Western province and have a meaningful and lasting economic impact for Papua New Guinea and its people.”
The independent recertification study by Netherland Sewell and Associates follows the successful completion in January of the P’nyang South-2 well, located in the Western.
The P’nyang field is located within petroleum retention license 3, which covers 105,000 acres (425 square kilometres).
ExxonMobil affiliates operate the license with a 49 per cent interest in the block.
Affiliates of Oil Search have a 38.5 per cent interest and JX Nippon has 12.5 per cent interest.
Papua LNG is seeking to commercialise the Elk-Antelope fields located in petroleum retention license 15 in Gulf.
ExxonMobil affiliate holds 37.1 per cent interest, and affiliates of operator Total SA and Oil Search Ltd have 40.1 per cent and 22.8 per cent interest, respectively.
Kumul Petroleum Holdings Ltd managing director Wapu Sonk when contacted yesterday said he was happy with the outcome of the reserve upgrade. “The Government should be congratulated for insisting back in 2016 that P’nyang South drilling and reserve certification be completed first before discussing the Application for Petroleum Development License (APDL) was lodged and now we can discuss the APDL when we
know what reserves we are dealing with.
It also gives comfort that Train 3 discussions will happen as soon as the Developer submits the other requirements for APDL have been revised and submitted, which I understand will be soon,” he said in a statement.