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Papua LNG Project members Total, ExxonMobil and Oil Search have signed a memorandum of understanding (MoU) with the Independent State of Papua New Guinea (PNG) defining the key terms of the project’s gas agreement, Total reported Friday.
“The MoU signed by the State of PNG and the partners of the Papua LNG project is an important step in all the parties’ commitment to the project,” Total Chairman and CEO Patrick Pouyanné, said in a written statement emailed to Rigzone.
Total, ExxonMobil and Oil Search have agreed to launch the first phase of the engineering studies for Papua LNG, which will include two 2.7-million tonne per annum (mtpa) liquefaction trains, Total stated. The partners will develop Papua LNG with the that ExxonMobil operates.
“Investing in LNG is a long term enterprise and our objective is to be able to make the project as competitive as possible,” noted Pouyanné. “Total being the second-largest world private LNG player, we are fully committed to the success of the Papua LNG project, which benefits from a favorable geographical location close to Asian markets.”
In an address Saturday to the Asia Pacific Economic Conference (APEC) summit in Port Moresby, PNG, Oil Search Managing Director Peter Botten told attendees that PNG’s Elk Antelope and P’nyang gas fields highlight PNG’s “substantial” still-uncommercialized natural gas resources. Botten noted that Friday’s MoU, which describes core fiscal terms for the Papua LNG Project, represents a “significant step forward” to strike a “value balance” between the PNG government and developers and make the project a reality.
“The agreement prescribes a path forward, where we now have greater certainty on fiscal issues and investment parameters leading to closure of a gas agreement and all terms by the end of March 2019,” stated Botten. “This will then be a precursor for front end engineering and design and final investment decision, sometime in 2020.”
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Company: Total S.A.
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