23 Aug 2013

Reported discovery of huge gas field in PNG may be premature

3:08 pm on 23 August 2013

An energy sector analyst has warned it may be premature of the Australian mining magnate Clive Palmer to declare he has discovered one of the world's largest gas fields in Papua New Guinea.

Palmer Petroleum has announced it found an offshore field in the Gulf of Papua which Mr Palmer says has a likely current value of US$35 billion but would be many times that once in production.

The billionaire says he has spent more than $50 million exploring the area so far.

However Bentek Energy's Javier Diaz says that usually before such a discovery is announced, more resources are spent in exploration.

"I think they will still continue to (conduct) exploration operations in order to really ensure that this discovery is really what they think it is at the moment. When I look at the number, usually the amount of investment in exploration is really high. It's probably just a first seismic analysis of the data."

Javier Diaz of Bentek Energy