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High Arctic Energy Services Inc T.HWO

Alternate Symbol(s):  HGHAF

High Arctic Energy Services Inc. is a Canada-based energy services provider. The Company provides pressure control equipment and equipment supporting the high-pressure stimulation of oil and gas wells and other oilfield equipment on a rental basis to exploration and production companies, from its bases in Whitecourt and Red Deer, Alberta. The Company's operations involve the rental of pressure control and other oilfield equipment to exploration and production companies operating in Canada. In western Canada, it provides pressure control equipment on a rental basis to a number of exploration and production companies. Its North American service lines are oilfield rental equipment. Its rental services offer a lineup of oilfield rental equipment for drilling, completions, workover and abandonment oil and gas operations.


TSX:HWO - Post by User

Post by AVALONSHARKon Jun 09, 2022 12:09pm
324 Views
Post# 34743898

Upstream work about to get started - HWO will fly

Upstream work about to get started - HWO will fly

https://www.upstreamonline.com/exclusive/papua-lng-totalenergies-getting-ready-to-select-feed-contractors/2-1-1232841

French energy major TotalEnergies is preparing to select imminently its front-end engineering and design contractors for the multi-billion dollar Papua LNG project in Papua New Guinea.

Three FEED contracts are being offered — the upstream central processing facility and wellpads; the onshore and offshore pipelines; and the early works.

Multiple market sources said the frontrunner for the upstream facility FEED is Technip Energies, with competition coming from some or all of McDermott, Fluor/Saipem, Wood and Worley.

For the pipeline FEED, Worley is said to be in a good position, according to market sources.

The Papua LNG project is based on the development of the onshore Elk-Antelope gas fields in Block PRL 15 via a large onshore central processing facility, dual 60-kilometre onshore pipelines for gas and condensate, and dual 265-kilometre offshore pipelines to two new liquefied natural gas trains at Caution Bay near Port Moresby.

TotalEnergies is the operator of the upstream and pipeline components while ExxonMobil is running the show with the two new trains, given their location will be ExxonMobil’s existing PNG LNG facility.

 

The two new trains will have a total capacity of 5.6 million tonnes per annum of LNG, with Japanese engineering house Chiyoda favoured to land the FEED contract given Chiyoda was the main LNG contractor for the two existing trains at PNG LNG.

TotalEnergies has previously indicated to Upstream that its FEED contractors will not be excluded from participating in the highly lucrative engineering, procurement, construction and installation contracts.

Market sources said the upstream construction model will be partially modular — some of the construction of the upstream facility will be offshore, with those modules shipped in to PNG.

PNG economy

The Papua LNG project is hugely important to the PNG economy, which is suffering as a result of government debt in excess of 30 billion kina (US$8.5 billion) along with the ill-effects of the Covid-19 pandemic and low commodity prices before this year.

Papua LNG stands to add substantially to PNG’s exports of LNG, and the Elk-Antelope area has significant unexplored nearby acreage.

The development of Papua LNG is likely to be followed by the P’nyang gas field development which will set up further LNG expansion through the addition of another new LNG train at ExxonMobil’s site.

There are also other discoveries including Muruk which are standing by to be developed for the LNG market.

The Canadian drilling company High Arctic Energy Services, which is a dominant player in PNG, has indicated recently that PNG is on the verge of a recovery following several years of being in a slump.

Mike Maguire, High Arctic’s chief executive, said last month: “We look forward to increasing activity in PNG, where we anticipate activity levels in the coming years have the potential to exceed our past peaks.

“We expect further announcements about advancement of the Papua LNG project, and the development of P’nyang and other PNG LNG fields, among other projects to increase oil and gas production.”

Anything is possible in PNG

Papua LNG has moved up the ranks at TotalEnergies after the suspension of the French operator’s Mozambique LNG project.

However, despite the optimism that PNG is coming back into the fold, country risks remain, including on the governance side with a national election planned this July.

The current government under Prime Minister James Marape wants to raise its share of benefits from all of PNG’s natural resources projects, while a change of government could also provoke uncertainty.

A final investment decision for Papua LNG is earmarked for 17 months after the start of FEED, and first gas is planned for 44 months after the final investment decision.

The co-owners of Papua LNG are operator TotalEnergies on 40.1%, ExxonMobil on 36.5%, Santos on 22.8% and minority parties on 0.6%, however the national oil company Kumul Petroleum has a back-in right to a 22.5% interest.

The Elk-Antelope fields contain about 6.5 trillion cubic feet of gas and 57 million barrels of condensate on a gross best estimate contingent basis, according to Oil Search, which is now part of Santos.

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