PNG Gas Commercialisation Update 1 February 2007 1
PNG Gas Commercialisation Update Summary Strong interest from credible gas buyers and developers wishing to purchase gas or develop projects in PNG Need to re-evaluate PNG Gas Project based on APC withdrawal Undertaken…
PNG Gas Commercialisation Update Summary Targeting projects with access to world gas and liquids pricing Material increase in core pricing over last 2 years Strong and sustained demand Strategic importance of being front runner in…
PNG Gas Commercialisation Update Development Options Kutubu Field is a key strategic resource and infrastructure hub. Value to all developments. Number of options being evaluated: Join ExxonMobil in Hides/Angore based…
PNG Gas Commercialisation Update Development Options OSH and BG engaged in LNG feasibility study through second half of 2006 Reviewed capital costs, project structure, development issues Reviewed initial 3-4 mtpa based on Kutubu…
PNG Gas Commercialisation Update Development Options BG very credible LNG company Proven development record Proven marketer, with flexibility of offtake Discussions continuing on project structure and entry conditions Must be…
PNG Gas Commercialisation Update Development Options ExxonMobil recently completed analysis on LNG option using Hides/Angore as a core resource Have approached Kutubu and Juha field groups to join in the potential development…
PNG Gas Commercialisation Update Development Options Mature opportunities to supply gas to Petrochemicals and Fertiliser Plant in Port Moresby Production range 90PJ/pa to 136PJ/a Product price with linkage to international energy…
PNG Gas Commercialisation Update Way Forward LNG ExxonMobil led Project Negotiations for Project entry with Kutubu and Juha JVs Negotiations with PNG Government on key fiscal issues Kutubu led Project Negotiations with BG on…
PNG Gas Commercialisation Update Petrochemicals Negotiations on contract terms and completion of final feasibility work Land access arrangements Other Options being reviewed Targeting decision on which final project(s) to pursue…
PNG Gas Commercialisation Update Comparisons Analysis indicates value and return ranking LNG Petrochemicals Pipeline Important access to world energy markets (direct or indirect) Scale of investment and return In-country…
PNG Gas Commercialisation Update Comparisons Australian East Coast Gas Market constrained Significant discount to world prices Clear need for further gas supply and diversification Gas prices will rise but with natural cap due…
PNG Gas Commercialisation Update Other complementary activities Significant expansion of appraisal and exploration programme for gas Juha wells Kimu/Korobosea Barikewa Mogulu Aimed at increasing contractable gas Targeting early…
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