Page 17 - AsianOil Week 46

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$130mn, sufficient to cover the costs of proceed- The other shareholders in RSSD are Woodside
ing with exploration at its licence areas in Guin- Energy of Australia and Petrosen, the national oil
ea-Bissau and Gambia and to support a new company (NOC) of Senegal. Woodside, the opera-
long-term strategic goal of acquiring another tor, now holds a majority interest in the joint venture
upstream asset. following its decision to pre-empt efforts by Cairn
FAR managing director Cath Norman Energy (UK) to sell its stake to Lukoil (Russia).
commented: “We are pleased to bring this The Sangomar block includes three separate
deal to our shareholders and wish to thank fields – Rufisque, Sangomar Offshore and San-
ONGC for their interest and co-operation gomar Deep Offshore – that give the RSSD joint
over the last few months. ONGC is a very venture its name. Oil was discovered at the block
reputable group with global exploration in 2014, and RSSD has determined that it holds an
and production interests. We believe they estimated 645mn barrels of oil equivalent (boe) in
will be a valuable partner for Petrosen and recoverable reserves, including 485mn barrels of
Woodside going forward.” crude oil and 160mn boe of natural gas.™

Papua LNG boosted by new PNG legislation

PROJECTS & THE Papua LNG project received a major boost
COMPANIES last week after the Papua New Guinea (PNG)
government passed six pieces of legislation that
will allow operator Total to proceed with the
$20bn development. The bills pertain specifically
to various aspects of Papua LNG, including tax
and insurance.
PNG Prime Minister James Marape said
Total would send a delegation to the country in Indeed, Oil Search said this week that its LNG
the coming weeks for talks on how the project plans for PNG would now focus on the Papua pro-
would proceed. ject, which it could see going ahead on its own.
“The Total delegation will arrive in the next “There is significant interest from all parties
two weeks and I and [Petroleum] Minister to simplify LNG expansion in PNG and focus on
[Kerenga] Kua will sit in with them for them Papua LNG’s two trains,” Oil Search’s CEO, Kei-
to tell us the exact timeline of the Papua LNG,” ran Wulff, told investors. “Comments by Total,
Marape said. the PNG government and the PNG opposition
Talks are reportedly also planned with the are increasingly supportive of advancing the
other partners in Papua LNG, ExxonMobil and Papua LNG project,” he added.
Oil Search. The companies had initially been Wulff went on to say that his company saw
aiming to double PNG’s LNG exports through potential for LNG demand to increase strongly
a two-part initiative involving the construction from 2027 as major coal users such as Japan and
of Papua LNG and the expansion of the existing South Korea seek to lower their greenhouse gas
ExxonMobil-led PNG LNG plant. (GHG) emissions.
However, the plan ran into obstacles after the To meet that window, Papua LNG’s owners
current PNG government took power in May would have to reach a final investment decision
2019, pledging to extract greater benefits from (FID) in 2023, he said.
natural resource projects. This has led to talks ExxonMobil, meanwhile, has said that talks
stalling between the government and ExxonMo- with the government on the development of
bil over developing the P’nyang gas field, which P’nyang are ongoing. But Wulff noted that PNG
would feed a new liquefaction train at PNG LNG has been producing at 26% above its name-
LNG. However, the current government agreed plate capacity, and would soon need new sources
to honour a deal signed by Total with a previous of gas. This raises the possibility of developing
PNG government. P’nyang to supply the existing two trains at PNG
All of these issues had been playing out for LNG, rather than to underpin a third unit.
months prior to the coronavirus (COVID-19) All of this comes as Marape faces a threat to his
pandemic pushing the LNG market into a down- leadership, with several members of his govern-
turn and depressing global demand for the fuel. ment switching to the opposition last week. This is
Now, with less immediate need for both projects, not an uncommon occurrence in the country’s Par-
it increasingly looks as though only one may go liament, but adds to uncertainty for project devel-
ahead in the nearer term. opers with regard to PNG’s political situation.™

Week 46 19•November•2020 www. NEWSBASE .com P17