PNG: InterOil Extends LNG Agreements

InterOil announced that it has extended the dates in the contingent LNG project agreements with each of Mitsui & Co., and Energy World Corporation Limited (EWC) to provide flexibility for partner selection and Final Investment Decision (FID). The company also said that the Antelope-3 well reached total depth on December 25th, and the wireline logging program is currently in progress.

The joint venture operating agreement and associated agreements with Mitsui for the proposed Condensate Stripping Plant (CSP) have also been amended to extend the time allowed for FID.

On November 15, 2012, InterOil was notified that the National Executive Council (NEC) of Papua New Guinea had approved a proposal to build a 3.8 million tonnes per annum LNG plant in the Gulf Province of Papua New Guinea. The approval received from the NEC is in line with the proposals from our potential LNG partners.

Since then, InterOil has been working with the PNG Government to complete a modified LNG project agreement and to secure an internationally recognized operator of the proposed facilities, consistent with the NEC approval. InterOil expects that these actions will allow it to promptly complete the partnering process.

“InterOil is pleased to have safely completed drilling our sixth well in the Elk and Antelope fields, which InterOil believes further confirms the continuity of this exceptional reservoir. Confirmation of continuous reefal reservoir at the Antelope-3 location, in conjunction with PNG’s Cabinet approval for the Gulf LNG project and growing provincial and landowner support, has allowed us to focus on finalizing our partnering process,” stated Mr. Phil Mulacek, Chief Executive Officer of InterOil.

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LNG World News Staff, January 02, 2013; Image: InterOil