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PNG renegotiating gas agreement

PNG Minister for Petroleum Kerenga Kua will travel to Singapore with a negotiating team to discuss new terms for the gas agreement that was originally agreed to in April 2019 by former Prime Minister Peter O’Neill.

The move comes after the PNG government announced earlier this month that “in principle” it would stand by the deal made with project operator Total and joint venture partners Oil Search and ExxonMobil.

The agreement outlines the fiscal framework for the Papua LNG Project, including domestic market obligations, the state’s project equity interest and the project’s commitment to local workforces, businesses and communities.

The statement signed by Minister Kua acknowledged that a breakdown in negotiations could have serious ramifications, with a collapse of the deal effecting the expansion of the Exxon-led PNG LNG Project, with both projects planning to work collaboratively with shared infrastructure and resources.

Oil Search Managing Director Peter Botten acknowledged the government’s announcement, saying the company “looks forward to further clarity on the state’s position regarding this agreement and ways forward for the project”.

PNG said it expects the negotiating team to return from Singapore next week.

For more information visit the Oil Search website.

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