Acting through its subsidiary, Gas Link Global, LNG Ltd said it has agreed to acquire all of the shares in Gedd PNG, which has interests in three permits in the PNG Foreland region.
Earlier this month, the company acquired a 20% stake in Papua Petroleum, which aims to list on the Australian Securities Exchange later this year and holds three petroleum prospecting licences and one exploration licensee application in the same area.
The acquisitions are aimed at securing petroleum opportunities that could underpin a 1 million tonne per annum LNG project.
Managing director Maurice Brand said the company’s objective in PNG was to secure an initial gas supply of 150 million standard cubic feet of gas a day over a 15-year period.
“The investment in Papua Petroleum Limited and Gedd PNG provides the company with an interest in a significant area of the oil and gas-prone Forelands region and Gulf of Papua, in PNG,” he said.
The Gedd PNG acquisition will give the company a 10% interest in each of PRL 10, PPL 188 and PPL 240.
PRL 10, which contains the Uramu gas field, has 318 billion standard cubic feet of 2P gas reserves. The other joint venture partners are Oil Search (operator) with a 49.55% stake and Woodside Petroleum with 40.45%.
Next door is the PPL 188 permit, which Oil Search also operates and has a 90% stake in.
Meanwhile, the PPL 240 joint venture, which also includes Oil Search as operator with a 70% stake and Horizon Oil with 20%, plans to drill a well later this year or in 2008.
This year's SEAAOC conference, to be held in Darwin from May 30 until June 1, features presentations on PNG gas commercialisation options, including LNG.
