Project Profile
Value: Undisclosed
Location: Gulf of Papua, Papua New Guinea
Reserves: 2C contingent resource of 792 bcf (Pandora fields only)
Production: unknown
Area: 765 km2
Depth: 110m
Start-up Year: -
In December 2013, PRL 38 was awarded after a year of competition in biding for the license. Talisman Energy Niugini Limited is the operator with 25% interest, Barracuda Limited (a subsidiary of Santos Limited) holds a 10% interest, Wondecla Limited a 40% interest(a subsidiary ofCott Oil & Gas Ltd) and Kina Petroleum Limited the remaining 25% interest. The License comrpises nine graticularblocks covering approximately 765 km2 in the Gulf of Papua and includes the Pandora Gas Fields.The Pandora gas fields are located approximately 200km west of Port Moresby in the Gulf of Papua and comprise two discoveries and several prospects at a water depth of approximately 110m. The two principal structures have a 2C contingent resource of 792 bcf. The Pandora A structure is a Miocene aged reef build up that was tested by the Pandora 1X well drilled by International Petroleum Corporation in 1988. The well encountered gas at 1,392 m TVD and a potential gas water contact at 1,669m TVD indicating a 278m gas column. The gas leg in the well was tested and flowed dry gas at 57 mmscfd. The Pandora B structure was tested by the Pandora B-1X well in 1992 by IPC and was also a gas discovery. The top reservoir was encountered at 1,559 m TVD and the well drilled through the limestone reservoir interval with partial returns and zones of total losses. Interpretation of cased hole logs show a potential gas water contact at 1,669 m TVD and a gas column of approximately 110m. The gas leg was tested and flowed dry gas at 43.1 mmscfd.
Development Options
Cott has identified a number of commercialisation opportunities for the gas fields including stand-alone development, aggregation with Western Province gas and domestic gas supply. The gas fields are strategically located close to major regional and North Asian gas markets and the relative accessibility of the gas combined with its rapid deliverability make it a flexible source of high margin production. These will be evaluated by the joint venture as part of the license work commitments. The gas fields may be of a sufficient size to justify development as a stand alone field using floating LNG technology. A number of mid-scale FLNG solutions are being developed by consortia which include LNG shippers, topside engineers and shipbuilders with a view to providing toll liquefaction services for a tariff expected to be in the range of US$3-4/mmbtu. With modest development costs and regional shipping costs of less than US$2/mmbtu, the gas is well situated to take advantage of the spot or long-term contract markets which are expected to remain strong.
Operators:
Twinza Oil: Operator with 40% interest
Talisman Energy Niugini Limited: 25% interest
Barracuda Limited (a subsidiary of Santos Limited): 10% interest
Kina Petroleum Limited: 25% interest
Contractors:
Wison Offshore and Marine: prepare a Concept Study for an FLNG facility