Reported by the National newspaper, Petroleum and Energy Minister William Duma revealed the 10% equity offered to the government for the future liquefied natural gas plant had been increased, but did not say by how much.
By comparison, the ExxonMobil-led PNG LNG project will have the government gaining a 19.4% stake once it hops on board.
Duma has already publicly said the government’s priority is the PNG LNG project, which is due for a final investment decision late this year.
PNGIndustryNews.net understands there are some government and industry concerns about the amount of reserves InterOil has for its proposed two-train LNG project.
InterOil is currently working to prove up more reserves with its Antelope-2 appraisal well in the Gulf Province, which hit the top of the Antelope reservoir about 345 feet higher than pre-drill estimates, according to its drilling report last week.