P’nyang talks break down

According to Reuters, PNG Prime Minister James Marape said talks with Exxon had broken down thanks to the company’s refusal to accept any change in financial terms regarding the development of the P’nyang field.

The PNG Government has been vocal about its desire to acquire a more favourable interest in any new gas expansions and projects, citing Exxon’s PNG LNG Project as an instance where the terms heavily favoured the oil and gas company.

Developing P’nyang is part of the expansion of the PNG LNG Project, which along with the Papua LNG Project would see approximately $13 billion invested in PNG gas and double the country’s LNG exports by 2024.

PNG successfully negotiated a deal with Total regarding Papua LNG, but the government said Exxon had “barely changed” its offer from what the company originally proposed for P’nyang.

The PNG Government said it hoped Total would still proceed with its Papua LNG plans.

Exxon operates PNG LNG with partners Oil Search and Santos, with Oil Search and Exxon both having a stake in the Total-led Papua LNG.

For more information visit the ExxonMobil website.

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