Unless someone has a better idea for actually seeing first gas out of Pandora this side of 2020, then perhaps the following proposal is not completely without merit?
Exmar appraises three sites for Pacific Rubiales’ FLNG barge Belgium’s Exmar is working with customer takeover target Pacific Rubiales Energy (PRE) in finding a new location in which to place the world’s first barge-based floating LNG (FLNG) production unit.Exmar managing director and chief executive Nicolas Saverys, speaking to TradeWinds at the World Gas...Harbor Energy, had chartered in Exmar’s 500,000-tonne-per-annum (tpa) LNG floater for the project.Bart Lavent, Exmar’s managing director of LNG upstream
Exmar's okay because they will get paid for the barge by Pacific Rubiales as per the 15 year contract but will want to see their first FLNG creation actually in operation.
Pacific Rubiales (PRE) is not okay as they will be paying for the barge anyway so will want it used somewhere ( A bit like having a taxi in your driveway with the meter on but no party to go to - you want someone else to use it for their night out!)
It's not unreasonable to assume that Pandora is being considered for the barge due to it's geographical proximity to Asia where most of the LNG demand is or at least the best prices (lets say US$8 mmBtu as per the America's Henry Hub now less then US$3 mmBtu).
Perhaps it's possible to deploy the Caribbean FLNG to Pandora as an interim measure for the first 4 years production for example but some issues could be:
1. Carribean FLNG is a 0.5mtpa vessel where Pandora is a 1 mpta gas field. Not a really a problem as it just means for the first 4 years you extract the gas at half the rate than the potential of the field until a purpose built barge takes it's place sometime after 2020.
2. Not sure if the barge has the equipment to treat & re-inject Pandora's acid gas - if not then perhaps Black & Veatch can modify or add to the vessel's topside?
If not then a buoyant tower production platform could also be used to feed the barge & stay on for the life of the project should a near shore Daru pipeline gas aggregation option come into play later or aggregation with Elk/Antelope/Pasca etc...
3. The barge was designed to sit at the end of a long Colombian jetty in 14 meters of water - not sure if the hull is suitable to Pandora's open sea deeper water?
Anyway, if something could be worked out then the project could major Capex / FID considerations & jump ahead 3 years to getting a PDL fast-tracked from the PNG govt & aim for first gas by the end of 2016?
Perhaps the new MD could go on hands & knees to Exmar & PRE and beg for a deal that can favour all parties in these tragic times!
Any interim/marginal deal that succeeds to monetize Pandora is better than nothing!!
Have a good weekend.
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BDM Price at posting:
2.2¢ Sentiment: Buy Disclosure: Not Held
