PNG back at the table for P'nyang

Negotiations between the PNG government and ExxonMobil stalled in 2019, as the then newly appointed government sought to renegotiate the terms of the original gas agreement, which had been inked in April 2019.

The initial agreement gave the project proponents the confidence to start the initial work on a $14-billion plan to double the expansion of liquefied natural gas (LNG) in PNG to around 16-million tonnes a year.

The expansion plans include three new 2.7-million-tonne-a-year trains at the PNG LNG project, two of which will be operated by project partner Total on its own acreage, while the third will be operated by ExxonMobil and fed from its existing and new gasfield P’nyang.

ASX-listed Oil Search, which also holds a stake in the project, on Monday said that the restart of negotiations was a positive step in the development of the P'nyang gas resources, and signalled the strength of support between the project partners and the government of PNG for a mutually beneficial outcome.

“We look forward to further progress in these negotiations and will support the operator through our 38.51% interest in the joint venture,” said Oil Search executive VP for commercial Diego Fettweis.

A series of workshops regarding the development of the P'nyang gasfield will take place over the next few weeks, and a heads of agreement is expected at the end of this month, with a gas agreement to follow thereafter.