InterOil: Papua LNG construction planned for 2018

InterOil, the holder of a 35.5 percent stake in Papua New Guinea’s PRL 15, said the Papua LNG project’s construction could start in 2018.

During a visit to Papua New Guinea in mid-April, Total indicated that the Papua LNG project remained a top priority for the company, InterOil’s statement issued on Friday reveals.

The Papua LNG project’s basis of design work is expected to progress to front-end engineering and design work in 2017.

Site preparation for the proposed Antelope-7 well pad continue and InterOil said this will facilitate drilling as quickly as possible if the joint venture decides to drill Antelope-7.

So far, the results from the Antelope 4, 5 and 6 appraisal support a simpler and lower cost LNG development, according to the company.

InterOil lowers loss slightly

InterOil recorded a net loss of US$17 million for the quarter ending March 2016, compared to a net loss of $21.9 million for the previous corresponding period ending March 2015.

During the quarter, administrative and general expenses increased by $3.9 million, mainly due to the restructuring of operations and corporate functions, the company said in a statement.

These increases were partly offset by a $16 million decrease in exploration costs as a result of lower exploration seismic activities in the first quarter of 2016, as well as a $5.1 million decrease in finance costs.

InterOil reduced its expected 2016 expenditure guidance to a range of $155 million to $170 million, with most spending focused on the Papua LNG project.

LNG World News Staff