Oil and Gas News

ExxonMobil and PNG sign LNG MoU

ExxonMobil has signed and agreement with the Papua New Guinean Government to expand its PNG LNG project and PRL 3 in the country.

Under the Memorandum of Understanding  the PNG LNG project will provide 25 megawatts of electricity and gas for domestic power generation in the nation.

It also details the provisions for an LNG expansion project, including the award of a petroleum development licence and associated pipelines licences for the P'nyanag gas field in PRL 3.

The P'nyang deal with ll aid debottlenecking of the existing trains and allow for a third LNG train.

The MoU also delineates an agreement timeliness between the PRL 3 co-venturers (which includes Oil Search at 38.51 per cent) and the Government to a final investment decision for the additional LNG train by the end of 2017 at the latest.

Speaking on the recent agreement, ExxonMobil's joint venture partner in PRL 3, Oil Search managing director Peter Botten said: "We are delighted that ExxonMobile, as operator off the PNG LNG project and PRL 3, has signed this MoU".

"This agreement meets the needs of all stakeholders. It will deliver much needed power to the people of PNG and provides and agreed timeline and activities for an expansion train at LPNG LNG supported by P'nyang, as major gas field which is a key growth asset in Oil Search's portfolio".

He went on to say that this arrangement supports the PNG Government's vision to improve the delivery of long term power to PNG, and "demonstrates how LNG developments, such as the PNG LNG project, can delivery both substantial export revenues and gas for power solutions to the local economy".

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