Papua New Guinea Gas Markets, 2010

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, LNG terminals and underground gas storage facilities) 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 1996-2020.
• Historical and forecast data and information for all the major gas fields, (Liquified Natural Gas) LNG Terminals, pipelines and underground gas storage facilities in Papua New Guinea for the period 2000-2013.
• 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.

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 11
2.2.1 Papua New Guinea Natural Gas, Overview 11
2.2.2 Papua New Guinea Natural Gas, Supply and Demand Balance 11
2.2.3 Papua New Guinea Natural Gas, Regulatory Structure 17
2.2.4 Papua New Guinea Natural Gas, Infrastructure 17

3 Papua New Guinea Gas Upstream Investment Environment Benchmarking 19
3.1 Introduction 19
3.2 The Overall Ranking 19
3.3 Upstream Fiscal Attractiveness 20
3.3.1 Maximum Government Take Index 21
3.3.2 Maximum State Participation 21
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 28
3.6.2 Governance Index 28

4 Papua New Guinea Exploration and Production Sector 29
4.1 Papua New Guinea Exploration and Production Sector, Country Snapshot 29
4.1.1 Papua New Guinea Exploration and Production Sector, Key Data 29
4.1.2 Papua New Guinea Exploration and Production Sector, Natural Gas Assets Map 29
4.2 Papua New Guinea Exploration and Production Sector, Marketed Natural Gas Production 30
4.2.1 Papua New Guinea Exploration and Production Sector, Marketed Natural Gas-Historical Production 30
4.2.2 Papua New Guinea Exploration and Production Sector, Marketed Natural Gas Production by Type 31
4.2.3 Papua New Guinea Exploration and Production Sector, Marketed Natural Gas Production by Assets 32
4.2.4 Papua New Guinea Exploration and Production Sector, Marketed Equity Weighted Natural Gas Production by Company 32
4.3 Papua New Guinea Exploration And Production Sector, Natural Gas Asset Details 32
4.3.1 Papua New Guinea Exploration And Production Sector, Active Natural Gas Asset Details 32
4.3.2 Papua New Guinea Exploration And Production Sector, Planned Natural Gas Asset Details 33
4.4 Papua New Guinea Exploration And Production Sector, Major Gas Discoveries 34
4.4.1 Papua New Guinea Exploration And Production Sector, Number of Gas Discoveries, 2004- 2009 34
4.4.2 Papua New Guinea Exploration And Production Sector, Gas Discovery Details 35
4.5 Papua New Guinea Exploration And Production Sector, Recent Discoveries 35
4.5.1 Jan 20, 2010: InterOil Confirms Indications Of Oil At Antelope-2 In Papua New Guinea 35
4.6 Papua New Guinea Exploration And Production Sector, Drilling and Production Updates 35
4.6.1 Jun 04, 2010: New Guinea Energy To Spud Panakawa-1 Well At Block PPL 267 In Onshore Papua New Guinea 35
4.6.2 Jun 01, 2010: Oil Search Provides Korka 1 Well Update 35
4.6.3 Apr 29, 2010: Oil Search Updates On Korka 1 And Al Meashar-1 Wells 36
4.6.4 Apr 22, 2010: Oil Search Updates On Korka 1 Well, Papua New Guinea 36
4.6.5 Apr 16, 2010: Eaglewood Energy To Spud Korka-1 well In Papua New Guinea 37
4.6.6 Apr 15, 2010: Oil Search Provides Drilling Update 37

5 Papua New Guinea Pipeline Sector 38
5.1 Papua New Guinea Pipeline Sector, Key Data 38
5.2 Papua New Guinea Pipeline Sector, An Overview 38
5.3 Papua New Guinea Pipeline Sector, Comparision of Key Natural Gas Pipeline Companies 38
5.4 Papua New Guinea Pipeline Sector, Natural Gas Pipelines 39

6 Papua New Guinea LNG Sector 40
6.1 Papua New Guinea LNG Sector, Liquefaction 40
6.1.1 Papua New Guinea LNG Sector, Liquefaction, Total Liquefaction Capacity 40
6.1.2 Papua New Guinea LNG Gas Sector, Capacity- Wise Market Share By Company 41
6.1.3 Papua New Guinea LNG Sector, Liquefaction Capacity by Terminal 42

7 Profile of Oil Search Limited 43
7.1 Oil Search Limited, Key Information 43
7.2 Oil Search Limited, Company Overview 43
7.3 Oil Search Limited, Business Description 43
7.3.1 Business Overview 43
7.3.2 Exploration and Production 43
7.4 Oil Search Limited, SWOT Analysis 45
7.4.1 Overview 45
7.4.2 Oil Search Limited Strengths 46
7.4.3 Oil Search Limited Weaknesses 46
7.4.4 Oil Search Limited Opportunities 47
7.4.5 Oil Search Limited Threats 48

8 Profile of Exxon Mobil Corporation 49
8.1 Exxon Mobil Corporation, Key Information 49
8.2 Exxon Mobil Corporation, Company Overview 49
8.3 Exxon Mobil Corporation, Business Description 49
8.3.1 Business Overview 49
8.3.2 Chemical 50
8.3.3 Downstream 51
8.3.4 Upstream 52
8.4 Exxon Mobil Corporation, SWOT Analysis 54
8.4.1 Overview 54
8.4.2 Exxon Mobil Corporation Strengths 54
8.4.3 Exxon Mobil Corporation Weaknesses 56
8.4.4 Exxon Mobil Corporation Opportunities 57
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 63
9.4.1 Overview 63
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 Partnerships 68
10.1.3 Asset Transactions 69

11 Recent Developments 84
11.1 License Awards 84
11.1.1 Dec 10, 2009: Papua New Guinea Approves InterOil's LNG Project Agreement 84
11.2 Strategy and Business Expansion 85
11.2.1 Sep 14, 2009: Talisman Energy Plans To Develop LNG Plant In Papua New Guinea 85
11.3 Other Significant Developments 85
11.3.1 May 27, 2010: Eaglewood Energy Provides Korka-1 Well Operations Update 85
11.3.2 May 25, 2010: InterOil Provides Operations Update 86
11.3.3 May 03, 2010: InterOil Updates On Antelope-2 Well In Papua New Guinea 86
11.3.4 Apr 19, 2010: LNG Energy Announces Joint 2D Seismic Acquisition Program With InterOil In Papua New Guinea 86
11.3.5 Apr 13, 2010: CPC Signs PNG LNG Purchase Agreement 87
11.3.6 Apr 07, 2010: LNG Energy Starts Airborne Magnetic And Gravity Survey In Papua New Guinea 87
11.3.7 Mar 12, 2010: ExxonMobil Clears Final Conditions To Proceed With PNG LNG Project 88
11.3.8 Jan 27, 2010: EFIC Supports McConnell Dowell's Involvement In PNG LNG Project 89
11.3.9 Jan 11, 2010: InterOil Updates On Antelope-2 Well In Papua New Guinea 90
11.3.10 Jan 07, 2010: Cue Energy Completes Barikewa 2D Seismic Survey In Papua New Guinea 91
11.4 New Contracts Announcements 91
11.4.1 Mar 03, 2010: MOL Wins Signs Two Long Term Charters For Two LNG Vessels With ExxonMobil 91
11.4.2 Dec 10, 2009: ShawCor Announces Contracts To Provide Pipeline Coatings For PNG LNG Project 92

12 Appendix 93
12.1 Methodology 93
12.1.1 Coverage 94
12.1.2 Secondary Research 95
12.1.3 Primary Research 95
12.1.4 Midstream Forecasts 95
12.1.5 Expert Panel Validation 95
12.2 Contact Us 96
12.3 About the Publisher 97
12.4 Disclaimer 97

List of Tables

Table 1: Papua New Guinea, Historic and Forecast Production and Consumption of Natural Gas, 1996-2020 12
Table 2: Papua New Guinea, Natural Gas Exports, Billion Cubic Feet, 1996-2020 14
Table 3: Papua New Guinea, Historic and Forecast Reserves of Natural Gas, 1996-2009 16
Table 4: Asia Pacific, Investment Benchmarking, Overall Country Rankings, July 2010 19
Table 5: Asia Pacific, Investment Benchmarking, Upstream Fiscal Attractiveness, July 2010 20
Table 6: Asia Pacific, Investment Benchmarking, Gas Sector Performance, July 2010 22
Table 7: Asia Pacific, Investment Benchmarking, Economic Performance, July 2010 25
Table 8: Asia Pacific, Country Standings, Economic Performance, July 2010 25
Table 9: Asia Pacific, Investment Benchmarking, Socio-Political Performance, July 2010 27
Table 10: Asia Pacific, Country Standings, Socio-Political Performance, July 2010 27
Table 11: Papua New Guinea, Natural Gas Key Statistics, 2009 29
Table 12: Papua New Guinea, Total Marketed Natural Gas Production (MMcf), 2002-2009 30
Table 13: Papua New Guinea, Marketed Natural Gas Production by Type (MMcf), 2002- 2009 31
Table 14: Papua New Guinea, Marketed Natural Gas Production (MMcf), by Assets, 2002-2009 32
Table 15: Papua New Guinea, Marketed Equity Weighted Natural Gas Production by Company (MMcf), 2002- 2009 32
Table 16: Papua New Guinea, Active Natural Gas Field Asset Details 32
Table 17: Papua New Guinea, Planned Gas Field Asset Details 33
Table 18: Papua New Guinea, Number of Gas Discoveries, 2004- 2009 34
Table 19: Papua New Guinea , Gas Discovery Details, 2004-2009 35
Table 20: Papua New Guinea, Pipeline Key Statistics, 2009 38
Table 21: Papua New Guinea, Natural Gas Pipeline Length by Company (Km), 2009 38
Table 22: Papua New Guinea, Natural Gas Pipelines, 2009 39
Table 23: Papua New Guinea, Total Liquefaction Capacity (Million Tonnes), 2000-2015 40
Table 24: Papua New Guinea, Liquefaction Capacity by Company (Million Tonnes), 2000-2015 41
Table 25: Papua New Guinea, Liquefaction Capacity (Million Tonnes), 2000-2015 42
Table 26: Oil Search Limited, Key Facts 43
Table 27: Oil Search Limited, SWOT Analysis 45
Table 28: Exxon Mobil Corporation, Key Facts 49
Table 29: Exxon Mobil Corporation, SWOT Analysis 54
Table 30: InterOil Corporation, Key Facts 61
Table 31: InterOil And Pacific LNG Operations Acquire Stake In PNG LNG From Merrill Lynch 67
Table 32: Santos Enters Into An Agreement With ExxonMobil, Oil Search, Nippon Oil, AGL and MRDC 68
Table 33: InterOil Acquires Interest In Elk-Antelope Gas Field 69
Table 34: Mega Fortune International Acquires 10% Interest In PPL 259 From Eaglewood Energy 70
Table 35: Oil Search Terminates The Sale of Its 3.5% Interest In LNG Project In Papua New Guinea To International Petroleum Investment 71
Table 36: New Guinea Energy To Sell 15% Interest In PPL 268 And 50% Interest In PPL 269 To Talisman Energy 72
Table 37: Horizon Oil Completes Sale Of Its Interest In PRL 4 And 5 To Talisman Energy 73
Table 38: Horizon Oil Terminates The Sale Of Its 50% Interest In (PRL) 4 And 24.82% Interest In (PRL) 5 74
Table 39: Eaglewood Energy Acquires 10% Interest In PPL260 75
Table 40: Petronet To Acquire Stake In Papua New Guinea Project From InterOil 76
Table 41: Santos To Sell Its 50.353% Interest In PRL 5 In Papua New Guinea To P3 Global 77
Table 42: Nippon Oil Acquires Interest In Four Gas Exploration Licenses From Oil Search 78
Table 43: AGL Energy Sells Its PNG Assets To Merlin Petroleum And Nippon Oil Exploration 79
Table 44: Nippon Oil Acquires Stake In LNG Project And Oilfields From AGL Energy 80
Table 45: Petromin To Acquire Interest In Elk/Antelope Field From InterOil 81
Table 46: New Guinea Energy To Sell Stake In Its Onshore Oil And Gas Acreage 82
Table 47: Sasol Petroleum International Acquires Majority Stake In Natural Gas Exploration Licenses 83

List of Figures

Figure 1: Papua New Guinea, Energy Sector Split By Fuel-Type, 2009 10
Figure 2: Papua New Guinea, Natural Gas Production And Consumption, Billion Cubic Feet, 1996-2020 13
Figure 3: Papua New Guinea, Natural Gas Exports, Billion Cubic Feet, 1996-2020 15
Figure 4: Papua New Guinea, Natural Gas Reserves, Billion Cubic Feet, 1996-2009 17
Figure 5: Asia Pacific, Country Standings, Upstream Fiscal Attractiveness, July 2010 21
Figure 6: Asia Pacific, Country Standings, Gas Sector Performance by Reserves-Exploration & Production, July 2010 22
Figure 7: Asia Pacific, Country Standings, Gas Sector Performance by Production-Consumption, July 2010 23
Figure 8: Asia Pacific, Country Standings, Exploration Blocks Awarded, July 2010 24
Figure 9: Asia Pacific, Country Standings, Economic Performance, July 2010 26
Figure 10: Asia Pacific, Country Standings, Socio-Political Performance, July 2010 28
Figure 11: Papua New Guinea, Natural Gas Assets Map, 2009 29
Figure 12: Papua New Guinea, Total Marketed Natural Gas Production (MMcf), 2002- 2009 30
Figure 13: Papua New Guinea, Marketed Natural Gas Production by Type (MMcf), 2002- 2009 31
Figure 14: Papua New Guinea, Number of Gas Discoveries, 2004- 2009 34
Figure 15: Papua New Guinea, Natural Gas Pipeline Length by Company (Km), 2009 39
Figure 16: Papua New Guinea, Total Liquefaction Capacity (Million Tonnes), 2000-2015 40
Figure 17: Papua New Guinea, Liquefaction Capacity by Company (Million Tonnes), 2000-2015 41
Figure 18: Methodology 94