Korea Gas Corporation has requested a further extension of its farm-in option over two coalseam gas exploration blocks held by Australia's Blue Energy in the eastern state of Queensland, following the recent flooding and cyclonic weather in the region.
The South Korean state-owned gas monopoly sought and has been granted an extension of the option to February 28, 2012, after Blue Energy's exploration work was delayed by the weather conditions, the Australian company said in a statement Tuesday.
Kogas was given the option, initially expiring on June 30, 2010, over Gallilee Basin permit ATP813P and/or Bowen Basin permit ATP814P in August 2009, when it took a 10% equity stake in Blue Energy at a cost of A$12.57 million ($12.77 million). Blue Energy subsequently granted Kogas an extension on the option to February 28, 2011.
Kogas already has a presence in the burgeoning Queensland coalseam gas sector, through its 15% stake in the Santos-led Gladstone LNG project, with which it also has a 3.5 million mt/year offtake agreement. Santos sanctioned the $16 billion coalseam gas-to-LNG project in mid-January and is planning first LNG exports from the 7.8 million mt/year plant in 2015.
