When asked about the implications of PNG LNG going into front-end engineering and design (FEED) after winning a gas agreement with the PNG Government, Talisman spokesperson Teri Keyser told PetroleumNews.net's sister publication PNGIndustryNews.net the company does not expect the recent LNG developments will impact on plans for the Pandora field.

While, Keyser did not reveal what plans Talisman had for Pandora, Rift Oil's recent heads of agreement with Flex LNG to jointly develop and market Rift's onshore Papua New Guinea gas reserves using a floating liquefaction unit suggests a possible route that Talisman may follow.

A discovery two decades old, the Pandora field is estimated to contain 1.5-3.0 trillion cubic feet of natural gas. This along with its location in the Gulf of Papua, makes it a likely candidate for a floating LNG development.

The PNG Chamber of Mines and Petroleum told PNGIndustryNews.net Pandora is in an ideal position to supply future LNG plants and that even though the gas will need its high sulphur content removed, the venture should still be profitable.

PNG LNG is in the FEED phase for its LNG plant near Port Moresby after operator and majority stakeholder ExxonMobil recently obtained a gas agreement with the PNG Government.

Meanwhile, Liquid Niugini Gas - which is one third-owned by InterOil, Merrill Lynch and Clarion Finanz AG - is negotiating with the Government for its LNG plant to be based near Port Moresby.

The Pandora gas field was discovered in 1988 in Petroleum Retention Licence 1 in the Gulf of Papua, and lies closer to Port Moresby than other gas sources slated for both LNG plant projects.

The PNG LNG project ownership consists of ExxonMobil at 41.6%, Oil Search at 34.1%, Santos 17.7%, AGL Energy 3.6%, and Nippon Oil 1.8%. Landowner interests hold the remaining 1.2%.