The project is proposed to be designed to process 400 million standard cubic feet per day (mmscf/day) of wellhead gas with an anticipated yield of approximately 9,000 barrels (bbls) of condensate per day.
Dry gas will be reinjected into the reservoir for storage until the proposed liquid natural gas (LNG) facility has been constructed. The condensate will be barged to the InterOil refinery in Port Moresby for processing and sale.
InterOil and Mitsui will each be responsible for half of the capital expenditure involved in the preliminary works and Mitsui will fund InterOil’s share.
Standard conditions of the agreements include the completion of front end engineering and design, an EPC agreement, and the definitive agreements by December 31, 2010, necessary to reach final investment decision (FID). In the event that FID is not reached, InterOil will be required to refund the capital expenditure incurred to date within a specified period.
Phil Mulacek, CEO of InterOil, said: “We look forward to a long and prosperous relationship with Mitsui, one of the largest energy conglomerates in Japan. When in production, the condensate project will provide a stable platform of early cash flow enhancing the benefit to partners in our proposed LNG project.”
