Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of ASX-listed Cott Oil and Gas increased by 8% on Wednesday after the company announced that it had received an expression of interest (EOI) from Wison Offshore and Marine to support the development of a floating liquefied natural gas (FLNG) facility at its Pandora gasfield, off the coast of Papua New Guinea.
Cott, which holds a 40% interest in the Pandora gasfield, has now engaged Wison to deliver a concept study for a FLNG facility that would be suitable for the project.
“We are delighted to have established a commercial relationship with Wison Offshore and Marine, one of the most dynamic and innovative engineering and construction groups in the oil and gas industry,” said Cott MD Andrew Dimsey.
He noted that Wison’s EOI validated Cott’s view that the Pandora gasfield was suitable for a standalone development using FLNG technology.
The concept study was expected to outline a potential FLNG concept that would be appropriate to the resource, location, gas composition and expected production rates of the Pandora gasfield, and to provide preliminary advice and recommendations on a pathway for development, offloading options, financing options, indicative capital costs and the economic viability of the project.
The study would likely be completed at the end of April this year, and Dimsey said a positive outcome could enable the joint venture partners to start pre-front end engineering and design.
Cott shares were trading at a high of A$0.135 on Wednesday, up from an opening price of A$0.130.