SMH: InterOil Bullish on Prospects for Elk-Antelope LNG Project in Papua New Guinea

InterOil chairman Chris Finlayson has told shareholders the company's flagship Elk-Antelope LNG project in Papua New Guinea is the lowest cost in the region and is extremely well placed to proceed "under all likely price scenarios".

At the US-listed company's annual meeting in New York, Mr Finlayson held to the target of mid-2015 for deciding on how the project will be configured, and said detailed design work and LNG gas marketing would start later this year. ASX-listed Oil Search has a stake in Elk-Antelope.

In a presentation to shareholders, InterOil cited analyst estimates that Elk-Antelope LNG will cost half as much as some new Australian projects in terms of capacity installed. The two-train project is estimated to cost about $US2050 per tonne of capacity, compared with $US4000 or more for projects such as Chevron's Gorgon venture and Shell's floating Prelude project, both in Western Australia.

"In this lower oil price environment, lowest cost always goes first," chief financial officer Don Spector said. MORE