First LNG Cargo Loaded from Exxon PNG Project
LNG carrier Spirit of Hela, which is jointly owned by MOL and Itochu Corporation, has left Papua New Guinea carrying the first LNG cargo from the ExxonMobil-led PNG LNG Project, Mitsui O.S.K. Lines, Ltd. announced. The PNG LNG Project is Papua New Guinea’s first ever LNG project, and it will provide long-term supply of gas to customers in Japan and other countries. The vessel loaded LNG at the Project’s Marine Terminal, which is located near Port Moresby, the capital of Papua New Guinea. The first cargo will be delivered to Tokyo Electric Power Company. On May 14, Papua New Guinea’s Prime Minister Peter O’Neill visited the vessel for a tour.
OII Announces Extension of Ocean Legend Contract
Oceaneering International, Inc. (OII) announced that the primary contract term for use of the Ocean Legend mobile offshore production system (MOPS) has been extended from three to five years effective May 17, 2002. The primary contract term will now terminate in May 2006. The Ocean Legend is working offshore Western Australia under a services agreement with Woodside Energy Ltd., on behalf of a joint venture comprising Woodside Energy Ltd., Apache Northwest Pty. Ltd., and Santos Limited.
Santos Discovers Oil and Gas in Vietnam
Santos Limited (STO) announced that it has completed testing of the Dua-5X well, offshore Vietnam, after discovering multiple gas and oil reservoirs in the southern fault block of the Dua structure. The company reported that the two reservoir intervals have been tested with the primary reservoir target flowing oil at a stable rate of 5,543 barrels of oil per day (bopd) plus 6.76 million standard cubic feet of gas per day through a 2 inch choke. The oil and gas producer said that a deeper secondary reservoir flowed at a rate of 247 bopd through a 28/64” choke. Santos reported that work would now commence on the resource assessment and preparation of a reservoir evaluation report, which is the first step in the commercialization process within the PSC terms.
Oceaneering To Provide Offshore Unit
Oceaneering International has been awarded a contract to provide a mobile offshore production unit (MOPU) for development of the Legendre North and South oil fields in WA-1-P on the Northwest Shelf of Western Australia. Participating companies in Legendre fields are Woodside Energy, Apache Northwest and Santos Limited, with Oceaneering converting its jackup Marine 7 to serve as the Legendre MOPU. The contract is a dayrate services agreement with a primary term of three years. With production predicted to commence by mid-2001, Oceaneering expects to accumulate incremental earnings of $.30 per share annually during this primary contract term. The company plans to fund the estimated capital cost of $80 million through cash flow from operations and its existing revolving credit facility.
