The Papua LNG Project Joint Venture (JV) partners have signed a gas agreement with the Papua New Guinea (PNG) Government.
The deal includes a domestic market obligation which will provide gas for future domestic use, a deferred payment mechanism designed to ease the financial burden associated with state’s acquisition of its project equity interest and a national content to support local workforce, businesses and communities.
Oil Search Managing Director Peter Botten said the signing was a major milestone for the project.
“The singing of this important agreement will allow all Papua LNG Project parties to proceed with confidence into front end engineering and design (FEED) related activities, commencing with contractor selection and engineering contracting,” he said.
“In addition, the PRL 15 JV has reached alignment on a suite of agreements which will support the Papua LNG Project taking the next step towards development, including those related to PNG LNG Project site and facility access.”
Mr Botten also said Oil Search would now focus on the expansion of the ExxonMobil-operated PNG LNG Project as the JV looks to close out an agreement with the state for the development of the P’nyang field and a proposed three train integrated development at the plant site.
Mr Botten said the JV is targeting a final investment decision for that development in 2020.
For more information visit the Oil Search website.
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