Oil and Gas News

Papua LNG project secures core legislation to progress

Papua New Guinea (PNG) Prime Minister James Marape has passed six pieces of legislation through the country’s parliament to ensure the $US20 billion ($27.3 billion) Papua LNG project proceeds.

Marape said despite COVID-19 and global economic contractions, the project’s investors have assured him of their commitment to Papua LNG.

“I place my appreciation to our development partners in Total, ExxonMobil and Oil Search for your patience as we processed the laws to ensure overall congruence to the spirit of our National Constitution,” he said.

“A  high-level delegation of Total officials will be visiting the country to work with government and all its partners in progressing to the Papua LNG project.”

In addition, Marape highlighted that discussions on the P’nyang agreement would be going ahead, with the Petroleum Minister Kerenga Kua also making an announcement on the Pasca condensate field in the Gulf Province.

Earlier this year the PNG Government pulled the plug on negotiations with joint venture partners ExxonMobil, Total and Oil Search on the expansion of the Papua LNG project.

ExxonMobil’s proposed development of P’nyang, along with the Papua LNG project, was expected to generate $13 billion in investment in the country’s gas sector and double its LNG exports by 2024.

However in August, Oil Search reignited discussion about the P’nyang agreement, with the aim to align the parties on terms for the development of the P’nyang gas field that were fair and balanced for all stakeholders.

Marape stated last week that following the meeting with Total on the Papua LNG project taking place, discussions on P’nyang would then be held.

“I would like to also thank ExxonMobil and Oil Search for tolerance to my government’s quest to secure better and fairer project agreements for the country,” Marape said.

“Let me place on record my appreciation to Total, ExxonMobil and Oil Search for: firstly, their patience; secondly for their understanding, and; thirdly for us to clear a space in which we could advance Papua LNG whilst at the same time discussions around P’nyang are running for us to find a pathway forward.”