Horizon Oil has significantly expanded its acreage in Western Foreland fields, Papua New Guinea.
The company has increased its interest by more than 28% in the total certified resources contained in Western Foreland fields of 2.0-2.5 tcf gas and 60-70 mmbbl of condensate.
The firm has purchased 20% interest in Puk Puk and Douglas fields, which are the appraised fields in the Western Forelands.
Horizon Oil has reduced its interest by 30% in Ubuntu field for portfolio balance and completed the upstream acreage and resource position for the Western LNG project, helping to advance the project.
The company, along with its partner Repsol, currently operates all the licences and hold 70% of the total gas resource to be combined to support the proposed 1.5 million tonnes per annum (mtpa) Western LNG project. It will result in facilitating the planned multi-licence development in one of the world’s major locations for LNG developments.
In January this year, the company had acquired a 50% stake and operatorship of PRL 28 (Ubuntu field) near PRL 21.
It also acquired additional 3.15% stake in PRL 21, which consists of Elevala/Tingu and Ketu fields, as a result of Mitsubishi divesting its upstream assets in Papua New Guinea.
Horizon Oil CEO Brent Emmett said: “We now consider that our PNG acreage portfolio, with the recent enhancements, is optimally balanced.
“Horizon Oil’s 20 – 30% interests in the discovered fields will give us a meaningful interest in Western LNG – yet remain manageable from a funding perspective, taking into account the US $130 million milestone payment due on project FID and also the funds to be reimbursed by the PNG government should it elect to back-in to the project.
“The 80 – 100% interests in the exploration licences provide scope for Horizon Oil to farm out future exploration work, to reduce exposure to cost and exploration risk.”
Image: Horizon Oil has increased its interest by more than 28% in Western Foreland fields. Photo: courtesy of Horizon Oil.