Total takes Elk and Antelope gas fields majority stake
The Paris-based international oil company (IOC) Total took a leap on the finish line ahead of other majors companies to close a deal with the New York-listed junior Inter Oil Corporation (InterOil) to acquire majority stake in the giant Elk and Antelope gas fields that could sustain the production of liquefied natural gas (LNG) at the Gulf LNG project in Papua New Guinea.
In fact each company was competing with different concept to develop these giant Elk and Antelope gas fields , the largest discoveries in Asia within the last two decades.
This concept was showing good profitability as it should have shared the infrastructures for the first PNG LNG two trains under construction.
View from the Papua New Guinea Government ExxonMobil may be welcome to proceed to the expansion of its PNG LNG project, but in a second step, only when the country will have previously diversified its partnerships with international companies.
With Shell, the eventual concept to moore a floating liquefied natural gas (FLNG) vessel just along the Papua New Guinea coast line could have arisen concern in the Government about the project contribution to the local added value, even though this scenario would have reduced the environmental footprint of the project in this very sensitive region.
Total and InterOil plan Gulf LNG final decision in 2016
If this tough competition was motivated by the large size of Elk and Antelope discoveries, the question remains: how big?
InterOil published contingency reserves (2C) ranging between:
– 6.83 trillion cubic feet (tcf) and 10.85 tcf of natural gas
– 111.5 million barrels (mmb) and 156.3 mmb of condensate
In fine, Total and its partners would share the working interests in such a way:
– InterOil 30%
– Oil Search 28%
A third LNG train could be added in the future depending on the future discoveries.