Png P`nyang Gas Agreement

“Everything is going well, we can expect to sign a P`Nyang gas agreement towards the end of this month,” Kua said. He said the Papua LNG project had been delayed for two reasons: the COVID-19 pandemic and ExxonMobil and Oil Search`s insistence on incorporating the P`nyang project into the agreement. Mr. Marape objected and insisted that Papua LNG was not conditional on its integration into P`nyang. Discussions on the project were suspended earlier this year when the government attempted to revise a separate LNG agreement with French energy company Total, to which Exxon is also involved. This agreement was finally approved in early September with minor concessions from Total. The proposal for the development of a gas field at P`nyang involves the construction of a third LNG train in the PNG-LNG project at Caution Bay, near Port Moresby, but is considered an integrated autonomous gas project, in accordance with the terms of a gas agreement. According to the government, the new gas agreement for P`nyang will be separated from the terms of the agreements for the initial PNG LNG project and the new Papua LNG project. Last year, the country`s oil minister said the government would push Exxon to “much better” terms for the P`nyang project than with the Total agreement.

An Exxon Mobil spokesman told Reuters news agency that the company was disappointed that no agreement could be reached. “Technical and commercial activities regarding the proposed extension of three LNG trains at the Bay LNG site slowed in the first half of the year due to the suspension of formal negotiations on the P`nyang gas agreement and the impact of COVID-19 on staff movement,” the company said in its results for the first half of 2020. until the new oil and gas legislation and the revised tax system are introduced this year. Nevertheless, he said it was more advantageous to negotiate and sign the P`nyang gas agreement under the existing 1998 Oil and Gas Act. The state is a partner in the PNG-LNG project. At the beginning of the state never put in money for the project, but signed the agreement for other partners boating our bills and later from our income from the sale. (Reuters) – Papua New Guinea will begin talks with Exxon Mobil Corp to try to negotiate better terms for the P`Nyang gas project, oil minister Kerenga Kua said, with an agreement expected by the end of the month if all goes well.