Chevron passes PNG gas baton - ExxonMobil to take over $2bn gas project for Aussie market
Upstream, April 12
By James Tham
ExxonMobil is set to inject new life into the $2.18 billion Papua New Guinea gas-to-Queensland project after taking over operatorship from Chevron.
The project's upstream partners last week unveiled a new management structure to spur the marketing of 6 trillion cubic feet of associated and non-associated gas as well as 200 million barrels of liquefied petroleum gas from PNG's Southern Highlands.
"The original PNG project team has completed all the technical work necessary and (it) will now be restructured from a Chevron-operated project to a management committee representing each of the owners," said the partners.
The management committee, chaired by ExxonMobil vice president WF Threlfall, will provide strategic guidance to a dedicated gas marketing group based in Brisbane, Queensland.
"Support for all other aspects of the project will be provided by the owner companies to increase significantly the resources available to deal with the many complex issues being addressed by the project," said the companies.
The ambitious project seeks to commercialise gas and liquid reserves in two main permits, PDL-1 and PDL-2.
A co-operative pact signed last year between the two permit groups marries abundant gas reserves in ExxonMobil's Hides gas field (PDL-1) with processing and transportation facilities in Chevron's ageing Kutubu field (PDL-2).
The project's main upstream partners are ExxonMobil, Chevron, Oil Search and the PNG government. While the final share split in the upstream portion is still being decided, talks will likely result in ExxonMobil owning at least 30% and Chevron with at most 10%, representing the largest and smallest stakes respectively.
The next largest shareholders will probably be Sydney-based Oil Search (26%) and the Papua New Guinea government (23%), according to industry sources.
While ExxonMobil's increased involvement in PNG Gas is not unexpected, it nonetheless did not go down well with everyone at Chevron -- a company that has toiled on the project for more than half a decade.
Photo:
In charge: the Australian city of Brisbane will be home to the PNG-to-Queensland project's new headquarters
____________
Going with the flow
Upstream, April 12
John Powell steps down as project director of $2.18 billion Papua New Guinea Gas project. He will be replaced by ExxonMobil's vice president of exploration for South-east Asia, Russia and Australia, Bill Threlfall. Powell, 55, a Chevron secondee, has served the project since 1997.
... |
