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Horizon Oil granted Papua New Guinea gas project licence

03rd June 2014

Nixon Duban, Papua New Guinea’s minister for petroleum and energy, granted the Stanley Gas Project development licence (PDL 10) and pipeline licence (PL 10) to Horizon Oil (Papua) Limited and its fellow licensees on Friday 30 May 2014

Horizon Oil awarded Papua New Guinea gas project contract
Reinjected gas from the project is planned to be commercialised by way of a combination of sales to regional users and as part of a potential Near Shore LNG project

The grant of the development and pipeline licence enables the commencement of development activities including the drilling of the Stanley-3 and -5 development wells, site preparation and facilities construction.

The grant of the Stanley Gas Project development licence was the final condition precedent in respect of Horizon Oil’s sale of 40 per cent of its Papua New Guinea petroleum interests to Osaka Gas of Japan.

"The Stanley joint venture has enjoyed the strong support of the Stanley area landowners, the PNG National and Western Province governments and key government departments in reaching this significant milestone, being the grant of the Stanley development and pipeline licences,” said Brent Emmett, Horizon Oil’s chief executive officer. “Horizon Oil shareholders, no doubt, will share the board and management’s considerable gratitude for such support.

“The Stanley Gas Project brings a welcome new development to Western Province, realising a first mover project for Papua New Guinea’s regional gas-fired power strategy and a catalyst for the application of the Stanley Gas Project development strategy to Horizon Oil’s material operated petroleum interests in the nearby condensate rich Elevala/Tingu and Ketu gas fields.”

The Stanley Gas project is located approximately 40 kilometres north of Kiunga, Western Province, Papua New Guinea and will be developed by a joint venture composed of subsidiaries of Horizon Oil, Talisman Energy, Osaka Gas and Mitsubishi Corporation.

The Stanley Gas project entails the production of around four million cubic metres of gas per day from two production wells, the recovery of condensate from such gas (initially around 4,000 barrels per day), sales of dry gas for regional power production and the reinjection of gas into the reservoir for enhanced condensate recovery and future sale.

The reinjected gas is planned to be commercialised by way of a combination of sales to regional users and as part of a potential Near Shore LNG project.

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