Kumul Petroleum (KPHL) has signed a pre-front-end engineering and development (FEED) contract for a floating LNG facility in the Gulf of Papua.
KPHL managing director Wapu Sonk signed the contract with Shanghai Wison Offshore and Marine Company chief technical officer Damien Nguyen at the recent 2024 Petroleum and Energy Conference.
Nguyen said Wison is delighted to be working closely with KPHL.
“Kumul Petroleum Holdings Limited has for some time been investigating how to commercialise stranded gas resources, particularly those in our Petroleum retention licenses (PRLs 47 and 50) over the Pandora and Uramu gas fields, offshore of Gulf Province,” he said.
Sonk said the contract signing marked a milestone for the two companies and the floating LNG facility.
“This is a critical step and in the right direction, one we are extremely excited about as the national petroleum company,” he said.
“KPHL has evaluated these gas discoveries and completed reserve certification, which has given us confidence to move to this stage of the commercialisation plan.
“KPHL is 100 per cent license holder of the two PRL offshore licenses at the moment and intends to farm down post this study to interested partners who see value in the 1.5 million tonnes per annum floating LNG project in PNG.
“This pre-FEED study is a necessary step to ensure that we understand the full scope, cost, schedule, risk and the full economic value before making a decision on moving to FEED and final investment decision (FID).”
The pre-FEED study is expected to take eight to 12 months, with FID to be announced in 2026 or 2027.
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