Elk-Antelope Joint Venture Selects LNG Project Sites

InterOil Corporation (NYSE: IOC; POMSoX: IOC) and the PRL 15 joint venture participants have unanimously endorsed recommendations from Total SA for key project infrastructure sites for development of the Elk-Antelope gas field in Papua New Guinea. The central processing facility for the Elk-Antelope gas field, on which the project is based, will be near the Purari River in the Gulf Province, about 360km north-west of Port Moresby, and will be connected to the LNG facility by onshore and offshore gas and condensate pipelines.Caution Bay near Port Moresby has been selected as the site for Papua New Guinea's second liquefied natural gas plant.The project will be known as Papua LNG. Papua LNG, which will be operated by Total SA and includes InterOil and Oil Search, will further refine site locations and pipeline corridors as part of project development.Selection of the final development concept, including the size and capacity of facilities, is expected in early 2016 when appraisal of the Elk-Antelope field has been completed.This will be followed by front-end engineering and design with early works scheduled to begin later in 2016.InterOil Chief Executive Dr Michael Hession said the venture would now enter basis of design, a significant milestone for the Papua LNG project."Sites were chosen for their technical, economic and environmental benefits and followed extensive surveys and studies by Total over the past year," Dr Hession said."These sites represent the best locations. The central processing facility in the Gulf Province will be near the gas field with river access. The LNG facility near Port Moresby has potential for synergies with existing infrastructure and sufficient land for significant LNG train expansion."