Papua New Guinea’s national oil company, Kumul Petroleum, has secured retention leases on three gas discoveries that were previously held by Oil Search.
Kumul said Oil Retention Licenses (PRLs) 48, 49 and 50 cover the discoveries of Kimu, Barikewa and Uramu.
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Kimu and Barikewa fields are ashore while Urumu is a shallow water resource off the southern coast.
All three fields have a best estimate estimated resource of 2 trillion cubic feet of gas with 50 to 60 million barrels of condensate.
Wapu Sonk, managing director of Kumul, said the government has a “PNG take-over” policy whereby assets that have not been marketed will be transferred to Kumul.
“We will explore cheaper and more profitable ways to commercialize these fields not only in LNG and gas production, but also downstream processing, power generation, quicklime and cement production.”
“We are now focused on developing business strategies for PRLs, so that we can work on bringing them to market. This is another milestone for our company and the country as we continue to work to develop our excellent resources and support the world’s transition away from coal. “
Oil Search was the former holder of the retention leases on Kimu, Barikewa and Uramu, but let them expire in October 2020.