Stanley gas project approved in Papua New Guinea


The national cabinet has approved the US$300 million (K829 million) development of the Stanley gas-condensate field in Western Province.

Petroleum & Energy Minister, Nixon Duban

Petroleum & Energy Minister, Nixon Duban

Petroleum and Energy Minister Nixon Duban has told the project operator, Horizon Oil, the National Executive Council has approved the signing of a gas agreement with Horizon and its partners.

Cabinet has also approved a benefit sharing arrangements among the local landowners, according to a statement by Horizon’s CFO, Michael Sheridan.

Stanley will initially be developed as a condensate extraction project with reinjection of dry gas.

A condensate recovery plant will be built at Stanley field along with a liquids pipeline to Kiunga on the Fly River. Storage will be built at Kiunga while a river tanker being built in Jiangsu in China will ferry the condensate to market outlets.

The granting of the licence will see Horizon Oil’s sale of 40 per cent of its PNG assets to Osaka Gas for US$77 million. This sale marks the beginning of a 60/40 strategic alliance between Horizon Oil and Osaka Gas, one of Japan’s largest utility companies and LNG importers.

The Stanley Gas Project in brief

  • Location: Western Province
  • Shareholders: Horizon (30%), Osaka Gas (20%), Talisman Energy (40%) and Mitsubishi (10%) [Subject to reduction to allow for PNG State Nominee participation at 22.5%]
  • Capacity:  8 million of barrels of condensate over a 10 year period
  • Timeline: Condensate production and cash flow by late 2015

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  1. Wassa sowathy says

    Stanley Gas Western LNG project landowners have fully established their three entities and ready to take lead in the current project. Stanley gas PDL 10 landowners association will be launch soon this year as sole political mouth peice for the 5000 plus landowners.

  2. Accordingly, the land owners should have the first say in this project. it is their land and they have the ultimate right in making critical and crucial decissions […] This Stanley/ Py”Ong gas project inject more than USD77 million/ 28 burrels per sale is huge and i dont know the piece of cut for the land owners stands at what percentage? 22.5% is for the state,…How much do the government give back to the people? may 7.2% similar land owners of Hela LNG,
    i beleive in equal dristibution and most importantly, The Land-Owners Rights. Hope the government do away with the adopted Constitution of Western Power- having 6m from the top soil to the 6 meeter deep given to the land owners….. I wish and hope that Stanley gas Land Owners agree to have their own PDL license and run a seperate pipelines from the plant to the storage at Kiunga and than to KPPA.

  3. Fabon Jacob says

    Stanley gas had taken too long for the construction, can someone explain why the delay and who’s the developer is? Is it Horizon or Talisman?

  4. tisen Pomsen says

    I think this is a good start but leaders should educate people before operating this gas because who knows in the future if we see that the environment is effecting there will be conflict as in that there will be educated citizens at that and it will cause inconvenience.

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