InterOil FIDs and T-2 plans

INTEROIL has extended final investment decision timelines with its project partners Mitsui and Energy World Corporation, while drilling has resumed at the Triceratops-2 well in Papua New Guinea’s Gulf province.
InterOil FIDs and T-2 plans InterOil FIDs and T-2 plans InterOil FIDs and T-2 plans InterOil FIDs and T-2 plans InterOil FIDs and T-2 plans

The FID for the condensate stripping project with Mitsui has been moved to the end of June, while the new FID deadline with EWC over the onshore modular LNG plant for the Gulf LNG project is December 31.

Both FIDs were previously expected in late 2011 but the PNG government's wish to involve a suitable world-class LNG operator for Gulf LNG was at least one reason for delays and the formal selection process was continuing.

The highly anticipated Triceratops-2 well was recently at the top of a carbonate reservoir at a depth of 1366m.

While InterOil was waiting for drill stem test equipment to arrive, delays in this regard led to a decision to keep drilling to a total depth of 2300m.

InterOil said a DST would be conducted once the wireline logging program was complete.

As of Friday, the well was at a depth of 1820m.

"Since penetrating the carbonate reservoir to the current total depth [1820m], background gas and persistent mud losses of between 5 [and] 40 barrels per hour have been encountered," InterOil said.

The New York-listed company said the plan was to drill to about 50-100m below the base of the carbonate reservoir to acquire electric logs over the whole carbonate section and to allow for rotary sidewall cores in zones of interest.

"We believe that the initial indications from the mud log demonstrate a permeable and porous reservoir," InterOil chief executive officer Phil Mulacek said.

"We are pleased to find that our aeromagnetic and gravity data utilised in combination with modern seismic data has provided a useful exploration tool to explore for potential reefal reservoirs in our licence areas in Papua New Guinea."

The Gulf LNG project is targeting 5 million tonnes per annum in 2014, with 3Mtpa from an onshore modular LNG plant and the rest from the floating LNG facility.

There is also a proposed ramp-up aiming to hit up to 8Mtpa from the total project through 2015 and 2016.


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