Papua New Guinea Gas Markets, 2011

Report Summary

This profile is the essential source for top-level energy industry data and information. The report provides an overview of each of the key sub-segments of the energy industry in Papua New Guinea. It details the market structure, regulatory environment, infrastructure and provides historical and forecasted statistics relating to the supply/demand balance for each of the key sub-segments. It also provides information relating to the natural gas assets (gas fields, pipelines and LNG terminals) in Papua New Guinea. The report compares the investment environment in Papua New Guinea with other countries in the region. The profiles of the major companies operating in the natural gas sector in Papua New Guinea together with the latest news and deals are also included in the report.

Scope

• Historic and forecast data relating to production, consumption, imports, exports and reserves are provided for each industry sub-segment for the period 2000-2020.
• Historical and forecast data and information for all the major gas fields, (Liquified Natural Gas) LNG Terminals and pipelines in Papua New Guinea for the period 2000-2015.
• Operator and equity details for major natural gas assets in Papua New Guinea.
• Key information relating to market regulations, key energy assets and the key companies operating in the Papua New Guinea’s energy industry.
• Information on the top companies in the Papua New Guinea including business description, strategic analysis, and financial information.
• Product and brand updates, strategy changes, R&D projects, corporate expansions and contractions and regulatory changes.
• Key mergers and acquisitions, partnerships, private equity and venture capital investments, and IPOs.

Reasons to buy

• Gain a strong understanding of the country’s energy market.
• Facilitate market analysis and forecasting of future industry trends.
• Facilitate decision making on the basis of strong historic and forecast production, reserves and capacity data.
• Assess your competitor’s major natural gas assets and their performance.
• Analyze the latest news and financial deals in the gas sector of each country.
• Develop strategies based on the latest operational, financial, and regulatory events.
• Do deals with an understanding of how competitors are financed, and the mergers and partnerships that have shaped the market.
• Identify and analyze the strengths and weaknesses of the leading companies in the country.

1 Table Of Contents

1 Table Of Contents 2
1.1 List of Tables 7
1.2 List of Figures 9

2 Papua New Guinea Energy Sector 10
2.1 Papua New Guinea Energy Sector, Market Overview 10
2.2 Papua New Guinea Energy Sector, Natural Gas 10
2.2.1 Papua New Guinea Natural Gas, Overview 10
2.2.2 Papua New Guinea Natural Gas, Supply and Demand Balance 11
2.2.3 Papua New Guinea Natural Gas, Regulatory Structure 16
2.2.4 Papua New Guinea Natural Gas, Infrastructure 16

3 Papua New Guinea Gas Upstream Investment Environment Benchmarking 18
3.1 Introduction 18
3.2 The Overall Ranking 18
3.3 Upstream Fiscal Attractiveness 19
3.3.1 Maximum Government Take Index 20
3.3.2 Maximum State Participation 20
3.4 Gas Sector Performance 21
3.4.1 Exploration Activity 23
3.4.2 Gas Production 24
3.4.3 Gas Reserves 24
3.4.4 Gas Consumption 24
3.5 Economic Performance 25
3.5.1 GDP Growth Index 26
3.5.2 FDI Confidence Index 26
3.5.3 Balance of Trade Index 27
3.6 Socio-Political Performance 27
3.6.1 Democracy Index 29
3.6.2 Governance Index 29

4 Papua New Guinea Exploration and Production Sector 30
4.1 Papua New Guinea Exploration and Production Sector, Country Snapshot 30
4.1.1 Papua New Guinea Exploration and Production Sector, Key Data 30
4.1.2 Papua New Guinea Exploration and Production Sector, Natural Gas Assets Map 30
4.2 Papua New Guinea Exploration and Production Sector, Marketed Natural Gas Production 31
4.2.1 Papua New Guinea Exploration and Production Sector, Total Marketed Natural Gas-Historical Production 31
4.2.2 Papua New Guinea Exploration and Production Sector, Marketed Natural Gas Production by Type 32
4.2.3 Papua New Guinea Exploration and Production Sector, Marketed Natural Gas Production by Assets 33
4.2.4 Papua New Guinea Exploration and Production Sector, Marketed Equity Weighted Natural Gas Production by Company 33
4.3 Papua New Guinea Exploration and Production Sector, Marketed Natural Gas Forecasts 33
4.3.1 Papua New Guinea Exploration and Production Sector, Marketed Natural Gas Forecasted Production 33
4.4 Papua New Guinea Exploration And Production Sector, Natural Gas Asset Details 34
4.4.1 Papua New Guinea Exploration And Production Sector, Active Natural Gas Asset Details 34
4.4.2 Papua New Guinea Exploration And Production Sector, Planned Natural Gas Asset Details 34
4.5 Papua New Guinea Exploration And Production Sector, Major Gas Discoveries 35
4.5.1 Papua New Guinea Exploration And Production Sector, Number of Gas Discoveries, 2005- 2010 35
4.5.2 Papua New Guinea Exploration And Production Sector, Gas Discovery Details 36
4.6 Papua New Guinea Exploration And Production Sector, Recent Discoveries 36
4.6.1 May 03, 2011: Horizon Oil Hits Gas At Stanley-4 Well In Papua New Guinea 36
4.6.2 Feb 07, 2011: Eaglewood Energy Makes Gas Condensate Discovery In PPL-259, Papua New Guinea 37
4.7 Papua New Guinea Exploration And Production Sector, Drilling and Production Updates 37
4.7.1 Jun 23, 2011: New Guinea Energy Provides Update On PPL 269 In Papua New Guinea 37
4.7.2 May 18, 2011: Morumbi Oil & Gas To Start Exploration In PNG 38
4.7.3 Apr 08, 2011: New Guinea Energy Announces PPL 269 And PPL 268 Update 38
4.7.4 Mar 22, 2011: InterOil Announces Year-End 2010 Resource Estimate 39

5 Papua New Guinea Pipeline Sector 40
5.1 Papua New Guinea Pipeline Sector, Key Data 40
5.2 Papua New Guinea Pipeline Sector, An Overview 40
5.3 Papua New Guinea Pipeline Sector, Comparison of Key Natural Gas Pipeline Companies 40
5.4 Papua New Guinea Pipeline Sector, Natural Gas Pipelines 41

6 Papua New Guinea LNG Sector 42
6.1 Papua New Guinea LNG Sector, Liquefaction 42
6.1.1 Papua New Guinea LNG Sector, Liquefaction, Total Liquefaction Capacity 42
6.1.2 Papua New Guinea LNG Gas Sector, Capacity- Wise Market Share By Company 43
6.1.3 Papua New Guinea LNG Sector, Liquefaction Capacity by Terminal 44

7 Profile of Oil Search Limited 45
7.1 Oil Search Limited, Key Information 45
7.2 Oil Search Limited, Company Overview 45
7.3 Oil Search Limited, Business Description 45
7.3.1 Business Overview 45
7.3.2 Exploration and Production 45
7.4 Oil Search Limited, SWOT Analysis 47
7.4.1 Overview 47
7.4.2 Oil Search Limited Strengths 47
7.4.3 Oil Search Limited Weaknesses 48
7.4.4 Oil Search Limited Opportunities 49
7.4.5 Oil Search Limited Threats 50

8 Profile of Exxon Mobil Corporation 51
8.1 Exxon Mobil Corporation, Key Information 51
8.2 Exxon Mobil Corporation, Company Overview 51
8.3 Exxon Mobil Corporation, Business Description 51
8.3.1 Business Overview 51
8.3.2 Chemical 52
8.3.3 Downstream 52
8.3.4 Upstream 53
8.4 Exxon Mobil Corporation, SWOT Analysis 54
8.4.1 Overview 54
8.4.2 Exxon Mobil Corporation, Strengths 55
8.4.3 Exxon Mobil Corporation, Weaknesses 57
8.4.4 Exxon Mobil Corporation, Opportunities 58
8.4.5 Exxon Mobil Corporation, Threats 59

9 Profile of InterOil Corporation 61
9.1 InterOil Corporation, Key Information 61
9.2 InterOil Corporation, Company Overview 61
9.3 InterOil Corporation, Business Description 61
9.3.1 Business Overview 61
9.4 InterOil Corporation, SWOT Analysis 62
9.4.1 Overview 62
9.4.2 InterOil Corporation Strengths 63
9.4.3 InterOil Corporation Weaknesses 64
9.4.4 InterOil Corporation Opportunities 64
9.4.5 InterOil Corporation Threats 65

10 Financial Deals Landscape 67
10.1 Detailed Deal Summary 67
10.1.1 Acquisition 67
10.1.2 Equity Offerings 69
10.1.3 Asset Transactions 70

11 Recent Developments 85
11.1 License Awards 85
11.1.1 Dec 02, 2010: InterOil Secures PRL For Elk And Antelope Fields In Papua New Guinea 85
11.2 Strategy and Business Expansion 85
11.2.1 May 30, 2011: Hoegh LNG And Partners Announce Incorporation Of PNG Floating Liquefaction Company 85
11.3 Other Significant Developments 86
11.3.1 Jun 21, 2011: InterOil Secures Board Approval For Gulf LNG Project Expenditures 86
11.3.2 Jun 08, 2011: LNG Energy Announces Management Changes 86
11.3.3 May 30, 2011: FLEX LNG Announces Start Of Field Specific FEED For FLNG Project In Papua New Guinea 86
11.3.4 May 17, 2011: New Guinea Energy Updates On Parker Rig Movements 87
11.3.5 Apr 28, 2011: Eaglewood Energy Provides PVT Analysis Results Of Ubuntu-1 Well In Papua New Guinea 87
11.3.6 Apr 28, 2011: Eaglewood Energy Announces Contingent Resources On Ubuntu-1 In Papua New Guinea 88
11.3.7 Mar 31, 2011: Oil Search Provides Mananda 5 Well Update 89
11.3.8 Mar 31, 2011: Eaglewood Energy Not Successful In Securing PRL 5 In Papua New Guinea 89
11.3.9 Mar 24, 2011: Oil Search Updates On Mananda 5 Well In PPL 219, Papua New Guinea 89
11.3.10 Mar 21, 2011: Horizon Oil Reports Production Testing Results For Stanley-2 Appraisal/Development Well In Papua New Guinea 89
11.4 New Contracts Announcements 90
11.4.1 May 04, 2011: Newsat Wins $1.7m New Contracts In April 2011 90
11.4.2 Apr 25, 2011: Lowrie Constructions Wins Second PNG LNG Contract 91
11.4.3 Apr 11, 2011: FLEX LNG Signs Agreements For FLNG Project In Papua New Guinea 92

12 Appendix 94
12.1 Abbreviations 94
12.2 Methodology 94
12.2.1 Coverage 94
12.2.2 Secondary Research 95
12.2.3 Primary Research 95
12.2.4 Expert Panel Validation 95
12.3 Contact Us 96
12.4 Disclaimer 96

1.1 List of Tables

Table 1: Papua New Guinea, Historic and Forecast Production and Consumption of Natural Gas, Billion Cubic Feet, 2000-2020
Table 2: Papua New Guinea, Natural Gas Exports, Billion Cubic Feet, 2000-2020
Table 3: Papua New Guinea, Historic and Forecast Reserves of Natural Gas, Billion Cubic Feet, 2000-2010
Table 4: Asia Pacific, Investment Benchmarking, Overall Country Rankings, Jun 2011
Table 5: Asia Pacific, Investment Benchmarking, Upstream Fiscal Attractiveness, Jun 2011
Table 6: Asia Pacific, Investment Benchmarking, Gas Sector Performance, Jun 2011
Table 7: Asia Pacific, Investment Benchmarking, Economic Performance, Jun 2011
Table 8: Asia Pacific, Country Standings, Economic Performance, Jun 2011
Table 9: Asia Pacific, Investment Benchmarking, Socio-Political Performance, Jun 2011
Table 10: Asia Pacific, Country Standings, Socio-Political Performance, Jun 2011
Table 11: Papua New Guinea, Natural Gas Key Statistics, 2010
Table 12: Papua New Guinea, Total Marketed Natural Gas Production (MMcf), 2003-2010
Table 13: Papua New Guinea, Marketed Natural Gas Production by Type (MMcf), 2003- 2010
Table 14: Papua New Guinea, Marketed Natural Gas Production (MMcf), by Assets, 2003-2010
Table 15: Papua New Guinea, Marketed Equity Weighted Natural Gas Production (MMcf), by Company, 2003- 2010
Table 16: Papua New Guinea, Marketed Natural Gas Production (MMcf), Forecast by Assets, 2011- 2015
Table 17: Papua New Guinea, Active Natural Gas Field Asset Details
Table 18: Papua New Guinea, Planned Gas Field Asset Details
Table 19: Papua New Guinea, Number of Gas Discoveries, 2005- 2010
Table 20: Papua New Guinea , Gas Discovery Details, 2005-2010
Table 21: Papua New Guinea, Pipeline Key Statistics, Jun 2011
Table 22: Papua New Guinea, Natural Gas Pipeline Length by Company (Km), Jun 2011
Table 23: Papua New Guinea, Natural Gas Pipelines, Jun 2011
Table 24: Papua New Guinea, Total Liquefaction Capacity (Million Tonnes), 2000-2015
Table 25: Papua New Guinea, Liquefaction Capacity by Company (Million Tonnes), 2000-2015
Table 26: Papua New Guinea, Liquefaction Capacity (Million Tonnes), 2000-2015
Table 27: Oil Search Limited, Key Facts
Table 28: Oil Search Limited, SWOT Analysis
Table 29: Exxon Mobil Corporation, Key Facts
Table 30: Exxon Mobil Corporation, SWOT Analysis
Table 31: InterOil Corporation, Key Facts
Table 32: InterOil Corporation, SWOT Analysis
Table 33: Mosaic Oil Sells Mosaic Oil Niugini To Talisman Energy
Table 34: InterOil And Pacific LNG Operations Acquire Stake In PNG LNG From Merrill Lynch
Table 35: Horizon Oil Completes Private Placement Of $13.16 Million
Table 36: Horizon Oil Acquires Additional 10% Interest In PRL 21 In Papua New Guinea
Table 37: Daulton Capital To Acquire 64% Working Interest In Oil, Gas and Liquid Natural Gas Rights
Table 38: JX Nippon Oil & Gas Exploration Acquires Additional 62% Stake In Papua New Guinea Oil And Gas Venture
Table 39: Transeuro Energy Plans To Acquire 10% Interest In Four Petroleum Prospecting Licenses In Papua New Guinea
Table 40: Eaglewood Energy To Farm-Out 70% Interest In PPL 258 In Sepik Basin
Table 41: InterOil Acquires 1.05% Participation Interest In Elk And Antelope Fields
Table 42: Oil Search To Acquire Four New Exploration Licenses In Papua New Guinea
Table 43: Eaglewood Energy Farms-Out 50% Interest In Two Graticular Block Of PPL 259
Table 44: METI Plans To Sell 62% Stake In Liquified Natural Gas Project
Table 45: Eaglewood Energy To Farm-out 70% Interest In PPL 257 In Cape Vogel Basin
Table 46: InterOil Plans To Sell Its Interest In Oil And Gas Assets In Papua New Guinea
Table 47: Mosaic Oil Completes Sale Of Its 28.57% Interest In PRL08 To Talisman Energy Niugini
Table 48: Cue Energy Resources Completes Sale Of Its Interest In License PRL8 To Talisman Energy Niugini
Table 49: Bhakti Investama Acquires Offshore Oil And Gas Field In Papua New Guinea
Table 50: GAIL (India) Plans To Acquire Interest In Upstream Assets And Gas Terminals In Papua New Guinea From InterOil
Table 51: Oil Search Acquires 12.73% Interest In Block PRL-1 From Cairn Energy
Table 52: New Guinea Energy To Sell 15% Interest In PPL 268 And 50% Interest In PPL 269 To Talisman Energy

1.2 List of Figures

Figure 1: Papua New Guinea, Energy Consumption Split By Fuel-Type (%), 2010
Figure 2: Papua New Guinea, Natural Gas Production And Consumption, Billion Cubic Feet, 2000-2020
Figure 3: Papua New Guinea, Natural Gas Exports, Billion Cubic Feet, 2000-2020
Figure 4: Papua New Guinea, Natural Gas Reserves, Billion Cubic Feet, 2000-2010
Figure 5: Asia Pacific, Country Standings, Upstream Fiscal Attractiveness, Jun 2011
Figure 6: Asia Pacific, Country Standings, Gas Sector Performance by Reserves-Exploration & Production, Jun 2011
Figure 7: Asia Pacific, Country Standings, Gas Sector Performance by Production-Consumption, Jun 2011
Figure 8: Asia Pacific, Country Standings, Number of Exploration Blocks Awarded, Jun 2011
Figure 9: Asia Pacific, Country Standings, Economic Performance, Jun 2011
Figure 10: Asia Pacific, Country Standings, Socio-Political Performance, Jun 2011
Figure 11: Papua New Guinea, Natural Gas Assets Map, Jun 2011
Figure 12: Papua New Guinea, Total Marketed Natural Gas Production (MMcf), 2003- 2010
Figure 13: Papua New Guinea, Marketed Natural Gas Production by Type (MMcf), 2003- 2010
Figure 14: Papua New Guinea, Number of Gas Discoveries, 2005- 2010
Figure 15: Papua New Guinea, Natural Gas Pipeline Length by Company (Km), Jun 2011
Figure 16: Papua New Guinea, Total Liquefaction Capacity (Million Tonnes), 2000-2015
Figure 17: Papua New Guinea, Liquefaction Capacity by Company (Million Tonnes), 2000-2015