Total develops concept
The National, Monday October 20th, 2014
By SHIRLEY MAULUDU
FRENCH companyTotal is in the process of selecting a development concept for the Elk and Antelope gas fields in Gulf, a company representative says.
Total E&P PNG Ltd managing director Philippe Blanchard told The National that: “We are still progressing on the selection of a development concept for Elk/Antelope.
The firm’s entry into exploration in Papua New Guinea became official after it signed the farm-in rights deal with InterOil in December last year.
Depending on the exploration results, this could lead to a final investment decision by 2016 for the development of the gas fields and the construction of a liquefaction plant located onshore of Gulf.
Total had said it would leverage its technology and experience in major LNG projects to reinforce its long-term production post-2020.
Blanchard said last week that investment values for the Gulf project would be revealed after Total had a project model in place.
However, the firm had said in a statement: “Total will pay US$470 million (K1,183m) 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 (K1,486m). The transaction remains subject to the approval by the PNG government.”
Total’s executives visited the country earlier this month to emphasise their commitment towards the project.
Prime Minister Peter O’Neill has welcomed the company’s commitment to advance PNG’s second LNG project.