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However, some operators have presented development concepts for the possible development of the stranded gas fields as part of meeting their licence conditions. 3.3. Petroleum Development Licence – PDL is a development licence to develop an already established economically and technically proven and viable petroleum discovery with a 25 year initial tenure and a further extension of 20 years. There are currently 10 active PDLs in the country with 3 operators as of December 2022. The three PDL operators are; Santos (then Oil Search) with 5 PDLs, ExxonMobil with 4 PDLs and Arran Energy with 1 PDL. Recently, Twinza Oil, ExxonMobil and Horizon Oil (Arran Energy bought off Horizon Oil’s interests in PNG) have applied for a PDL for the development of Pasca gas field in PPL 328 (APDL 14), P’nyang gas field in PRL 3 (APDL13) and Elevala Ketu gas fields in PRL 21 (APDL12) respectively. It is anticipated that Total will follow suit by applying for a PDL for the development of the Elk Antelope gas
Petroleum exploration trends in PNG from 1990 to December 2022. The sharp drop since 2018 is due to the impact of COVID-19 on petroleum exploration in PNG
fields in PRL 15 for the proposed Papua LNG project. Note that the Stanley gas field over which PDL 10 was granted in 2014 is yet to be developed due to a drop in oil prices at that time. The new operator for PDL 10 is Arran Energy. 3.4. Petroleum Processing Facility Licence – PPFL allows the licencee to produce and process hydrocarbon in a standalone petroleum processing facility outside of a PDL with a 25 year initial tenure and a further extension of 20 years. To process petroleum within a PDL does not require a PPFL. There are currently two active PPLs under two operators as shown in Table 1 (right). PPFL
Source : Petroleum Registry, DOP
and further to 48 in 2022 with the surrender of 2 PPLs in 2022. Majority of the PPL licences are operated by the three major players: Santos (then Oil Search) followed by ExxonMobil and Total. In 2022, 7 PPL applications (APPL) were received. The trend for PPL as of December 2022 is shown (below). 3.2. Petroleum Retention Licence – PRL is a retention licence that is granted over a certain number of blocks to carry out further appraisal work to fully investigate and prove the commercial and technical viability of a new discovered oil or gas field in a PPL before commercial development. It has a 15 year tenure with a 5 year initial tenure, 5 year first extension tenure and addition of 5 year second extension tenure. There are 13 active PRLs in the country with six operators as of December 2022. PRL 21 which contains the Ketu/ Elevala gas fields, PRL 15 which contains the Elk/Antelope gas fields (Papua LNG project) and PRL 3 which hosts the P’nyang gas field (P’nyang LNG project) are in their advance development stages. Two PRLs were issued in 2021, bringing the total to 13 PRLs from 11 in 2020. The PRL trend as of December 2022 is shown in graph (below).Most of the PRLs, though containing discovered gas fields, are not commercially developed because they are marginal and stranded gas fields, located far away from any established infrastructure, which drives their development costs very high. Petroleum appraisal activity trends in PNG from 1990 to December 2022. Appraisal activity has picked up from 1999 with the issue of 4 PRLs
1 was granted to InterOil for the Napa Napa oil refinery which was since sold to Puma Energy. PPFL 2 was granted to ExxonMobil for the PNG LNG plant in Port Moresby. For the proposed Papua LNG project, Total will be required to apply for a separate PPFL to build its two 2.7MTA trains within the PNG LNG plant site (PPFL2). ExxonMobil will also be required to apply for a separate PPFL for P’nyang LNG project’s train at the same location. In addition,
Petroleum licence trends in PNG, December 2022
Source: Petroleum Registry, DOP
Source : Petroleum Registry, DOP
VOLUME 34 2023
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