- Port Moresby
- Posted 10th Feb, 2021
Petroleum Minister announces the Extension of Petroleum Retention License No.15 (PRL 15) for Elk and Antelope gas fields, Papua LNG Project.
Coinciding with the Papua LNG Project Fiscal Stability Agreement signing on 09 February 2021, the Minister for Petroleum has announced the extension of the PRL 15. The PRL 15 Joint Venture Partners’ application was received by the Department of Petroleum and Energy (DPE) on 03 February and technical reviews followed suit until 08 February when the Petroleum Advisory Board made a decision to approve to the Minister to grant the Extension.
The PRL 15 license has good standing in the last two terms (10 years) and the JV partners have met work commitments under the license conditions. The recent Petroleum Advisory Board (PAB) approval to grant the Extension is the final renewal of the last term. The term of PRL 15 Extension will apply starting 30 November 2021, when the current term expires on 29 November. The Licensees will expand a minimum budget of USD $45 million (around K144 million).
During the final five-year term of the PRL 15 Extension, the JV partners will conduct project financing activities and also strategic market studies, which will be done separately or with other participants. Studies will include the long-term impact of COVID-19 pandemic and the timing of long-term LNG demand recovery to support timely economic development of the Papua LNG Project. The work program for PRL 15 Extension include technical activities as appropriate to prepare for Front-End-Engineering & Design (FEED). This is a critical path that will lead to execution of FEED and eventually a Financial Investment Decision (FID) down the path. Certain work programs such as social mapping and landowner Identification under S.47 Oil & Gas Act 1998 and all pre-requisites of Sound Application for a Development License (APDL) has been required under the final extension of PRL 15.
The Minister said “The license conditions have a solid work program that my Department through the PAB, has approved for the final term of the PRL 15, that should enable the Papua LNG Project JV Partners to undertake work that should consolidate on a solid APDL for the Project.”Back to News