Papua New Guinea NEWS

Papua New Guinea (PNG) has agreed to set financial terms for Total’s long-awaited gas project in the country. The project is expected to double LNG exports from PNG. Papua LNG will supply gas for two new processing units at Exxon Mobil’s PNG LNG plant. Negotiations over how revenue would be shared still require more work.

Oil Search Ltd has informed that the Papua New Guinea LNG project has entered into an agreement to supply liquefied natural gas (LNG) to British oil supermajor, BP. In a statement released yesterday, Oil Search said that about 450,000 tonnes of LNG will be supplied annually to a BP unit, over an initial three-year period. The firm did not disclose any deal amount.

High Arctic Energy Services has entered into a contract renewal contract with Oil Search Limited. All primary contracts of the Calgary-based energy services firm in Papua New Guinea will be renewed for a three-year term. The PNG-LNG facility returned to full production after shut down post a significant earthquake in February.

Papua New Guinea’s E&P giant, Oil Search released second-quarter earnings for their LNG project. The company’s total production saw an increase to 5.40 MMboe in May and June 2018. After the February Highlands earthquake, the company’s LNG project in Papua New Guinea has made a speedy recovery with a 12% increase in this quarter. MD, Oil Search stated that the company has recovered well from the disaster.

Hong Kong-based PetroChina has awarded a three-year-long LNG supply contract to ExxonMobil’s PNG LNG project. Under the terms of the contract, 0.45 million tonnes a year (0.45Mt/y) of LNG from the operation in Papua New Guinea, will be supplied to PetroChina, reaching 1.35 million tonnes in 3 years. The PNG LNG project is already supplying some 6.6Mt to major Asian customers like Sinopec, Osaka Gas and others.

As the E&P giant Exxon Mobil pushes to expand the $19b development in Asia-Pacific’s biggest energy projects, Papua New Guinea has stood in its way. The PNG LNG venture, which initiated operation in 2014, is delivering way more fuel than expected to Japan and China. While the preliminary investment was welcomed, the local government has now formed a new committee to negotiate better terms before approving the proposed expansion.

ExxonMobil has announced that the size of P’nyang natural gas field in Papua New Guinea has increased by 84% from the year 2012 and this offers immense growth opportunities to the firm for its operations in the country. The firm is working closely with its JV partners and the government for developing this world class resource.