Oil Search and its joint venture partners have voted in favour of operator Total SA’s recommended location of key infrastructure sites for the Papua LNG Project, encompassing the Elk-Antelope gas field.

Port Moresby-based Oil Search said discussions with the PNG Government on proposed infrastructure sites and selection criteria were well advanced and an announcement from the Government expressing support for these decisions is expected shortly.

In the interim the joint venture had agreed:

* That the LNG plant will be located at Caution Bay, approximately 20-km north-west of Port Moresby and adjacent to the PNG LNG Project site.

* The upstream Central Processing Facility will be located west of the Herd Base in PRL15, close to the Purari River.

* The approximately 75-km onshore and 265-km offshore pipeline routes for the separate gas and condensate pipelines have been determined.

Oil Search said that over the next few months, detailed geotechnical data acquisition will be undertaken, to further define the site locations. The plant location at Caution Bay will have a comparable footprint to the PNG LNG Project site.

The selection of the final development concept, including the sizing and capacity of the facilities, is expected to take place early in 2016, once appraisal of the Elk-Antelope field has been completed and the resource size has been quantified.

This development concept will then provide the basis for moving into Front End Engineering and Design (FEED) phase.

Peter Botten, Oil Search’s Managing Director, said: “The selection of the site locations for the key infrastructure for the proposed Papua LNG Project is a significant milestone and follows an exhaustive evaluation process of a large range of options by the joint venture over the last 12 months.

“These decisions will enable the joint venture to commence early engagement with key stakeholders, including State, Provincial and Local Governments as well as local communities. The location of the LNG site at Caution Bay will also maximise the opportunity to pursue potential synergies with the PNG LNG Project.

Appraisal of the Antelope field will continue in parallel, with the results of the recent initial testing of the Antelope 5 well consistent with a substantial resource base with good productivity in the carbonate reservoir. Drilling of the Antelope 4 sidetrack, which will enable additional testing of the reservoir to take place, will be followed by the Antelope 6 appraisal well later in 2015.



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