This PDL will help both oil producers advance their condensate recovery project for this field, but various issues still need to be ironed out.
"The substantive remaining matters to be resolved are negotiation of the Gas Agreement (fiscal terms) and the holding of the Development Forum with the landowners in the vicinity of the Stanley gas field," Horizon said in its recent quarterly report.
Horizon envisaged that government approval of the PDL and an associated pipeline licence would be made before the end of 2012.
"Early works in advance of PDL grant have been initiated. These include execution of a charter contract with P&O Maritime Services for the condensate tanker on 18 September 2012, ordering of the construction camp and preparation to begin site grading at the gas plant location," Horizon said.
"Negotiations for sale of the produced condensate and discussions with potential gas consumers continued throughout the quarter."
Yet Eaglewood Energy has recently said the PNG government would not award a PDL for the Stanley field in Petroleum Retention Licence 4 until unitisation arrangements were made over its neighbouring 65%-owned petroleum prospecting licence 259.
This is because the Stanley field extends into this licence area. Best case estimates by Gaffney Cline & Associates predict that 32.4 billion cubic feet of gas and 1.1 million barrels of condensate resources from the Stanley field in PNG fall within PPL 259.
The $300 million Stanley condensate project aims to produce 140 million cubic feet of wet gas per day to result in the initial recovery of about 4000 barrels of condensate per day using a two-train refrigeration plant in the field.
First production is targeting the end of 2013. Horizon owns 50% of PRL 4, Talisman owns 40% and Mitsubishi owns 10%.