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Flex LNG vice president of business development: Wouter Pastoor.

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Flex eyes first gas from Timor Sea

Norway-based Flex LNG is targeting to start up liquefied natural gas production from a gas field in the Timor Sea as early as late 2013.

Flex will take over Timor Sea JPDA 06-101(A) after acquiring Minza Oil & Gas. One well has been drilled in the field and the company is in the process of securing farm-in partners to finance the development of the field.

The acreage is understood to have estimated gas resource potential of 1.2 trillion cubic feet, enough to support output of around 1.5 million tonnes per annum of LNG, according to Upstream’s sister publication, LNG Unlimited.

Flex’s chief executive Philip Fjeld said the company expects to deploy one of the four floating LNG units on order with Samsung Heavy Industries in the Timor Sea field.

Meanwhile, a search is underway for ‘one or more partners for upstream development’, Fjeld said in an interview with Dow Jones.

The company will finish the selection of partners by the end of this year, and complete project financing - with a debt-to-equity ratio roughly at 75:25 - in 2011, Fjeld said.

Potential partners could be in China, India, Japan or South Korea, big consumers located close to the Timor sea geographically, he said.

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