Eaglewood strikes condensate MOU

EAGLEWOOD Energy has inked a memorandum of understanding with Switzerland-based commodity trader Trafigura over financing the development of a condensate production facility and associated pipeline for the Ubuntu discovery in PNG’s Western Province.
Eaglewood strikes condensate MOU Eaglewood strikes condensate MOU Eaglewood strikes condensate MOU Eaglewood strikes condensate MOU Eaglewood strikes condensate MOU

The flagged processing facility for the Eaglewood-operated Petroleum Retention Licence 28 will be linked via a proposed condensate pipeline to Drimdenasuk on the Fly River, where it can be exported via a river tanker.

While Horizon Oil and Talisman Energy share their own condensate recovery plans for these fields, Eaglewood said the close location of its proposed Ubuntu condensate facility and pipeline would have the capacity to process and transport the condensate from the Elevala and Ketu fields.

The Toronto-listed explorer has already lodged applications with the PNG government for the processing facility and pipeline, saying they are now being processed.

Approval by Petroleum Minister William Duma could help pave the way for binding agreements over these plans between Eaglewood and Trafigura.

"Trafigura has significant global experience in the financing and ownership of oil and gas infrastructure and in the trading, shipping and storage of hydrocarbon products," Eaglewood chief executive officer Brad Hurtubise said.

"We value their experience and capability, and look forward to forming a lasting working relationship with them.

"Since we discovered the Ubuntu field in 2011, we have been working towards the earliest possible commercialisation of the field, and this MOU is a significant step towards achieving this goal and kickstarting oil and gas production in the Western Province of Papua new Guinea."

No possible timelines, capital expenditure estimates or other monetary figures concerning the MOU were revealed by Eaglewood.


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