Oil and Gas News

Oil Search continues work on P’nyang agreement

Oil Search has remained in discussions with the Papua New Guinea Government (PNG) in regards to the P’nyang gas agreement during the first half of the year.

The company advised that the aim of the discussions were to establish key issues and identity opportunities for alignment, with talks conducted in a positive environment before being concluded in April.

Oil Search has since resumed discussions between ExxonMobil and the PNG Government, aimed at aligning the parities on terms for the development of the P’nyang gas field that are fair and balanced for all stakeholders.

“Technical and commercial activities on the proposed three train LNG expansion at the PNG LNG plant site at Caution Bay slowed during the first half, due to the suspension of formal negotiations of the P’nyang gas agreement and the impact of COVID-19 on the movement of personnel,” the company outlined in its 2020 first half results.

During the period, Oil Search conducted an internal analysis of the impact of COVID-19 on the outlook for global gas demand, with demand for material new LNG supplies in the Asian region will be delayed by a few years compared to pre-COVID-19 estimates.

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