Papua Lng Agreement

Kua added that the government will authorize the LNG project in Papua under the terms of the corresponding gas agreement, but these conditions must be interpreted and enforced in accordance with the “overall letter” and the expectations of the government and the state. Tuesday`s agreement allows the partners to enter the FEED phase of the study that will lead to the final investment decision in 2020. Botten added that Oil Search will now look into cooperating with all parties involved to reach an agreement on the development of the P`nyang gas field and the launch of frontal engineering and design activities for the proposed three-train integrated development, including FEED for the associated gas expansion project operated by Oil Search. Kua said the new concessions were not available in Papua New Guinea in the future as part of the agreement originally signed. As a result of the review, the NEC also departed from the current licensing system for the oil and mining industries, which will be replaced by a production-sharing agreement system for future licensing agreements. Prime Minister Peter O`Neill said friday in Port Moresby, the capital, that “physical conditions” had been agreed. He said negotiations on how municipal and provincial government revenues would be shared required more work. I would say that we are close to 50%60% already having our understanding of revenue participation,” O`Neill said at Reuters` request. Differences of opinion on landowners` rights and revenue-sharing agreements have been an almost constant feature of the evolution of resources in PNG. A non-binding Memorandum of Understanding (MOU) signed on Friday is basically a government commitment to rule out a gas agreement in early 2019 that would lead to the development of Total-operated Papua LNG.

The MoU was signed at the Asia-Pacific Economic Conference (APEC) in Port Moresby, in the presence of Peter O`Neill, Prime Minister of Papua New Guinea, and Patrick Pouyanné, President and CEO of Total. The proposed gas agreement is expected to be finalized in the first quarter of 2019. Total operates the Onshore Elk and Antelope fields and is alongside ExxonMobil partners (28.3%) the largest shareholder of PRL-15 with a 31.1% stake. and Oil Search (17.7%), post the State back-in right of 22.5%. The Papua LNG project consists of two MMtpy LNG trains of MMtpy each and is being developed in synergy with existing LNG facilities (operated by ExxonMobil).