Encouraged by PNG Support for Papua LNG Gas Deal: Oil Search

Australia-listed Oil Search August 5 said it is encouraged by Papua New Guinea government's "in principle" support for LNG gas agreement. The deal was signed in April but was put up for review after the prime minister who signed it resigned in May.

“We are encouraged by the statement made by the minister for petroleum, Mr Kerenga Kua, that the PNG cabinet (National Executive Council) has agreed, in principle, to stand behind the Papua LNG gas agreement, which was signed by the PNG government and the PRL 15 joint venture in April 2019,” Oil Search managing director Peter Botten said. 

PNG cabinet met August 2 and discussed the gas agreement and decided to in principle stand behind the agreement.

“NEC met Friday 2 August and has discussed the result of the review conducted by the state negotiating team and has agreed in principle that state should stand behind the signed agreement in the best interest of the state,” Kua said August 4 in a statement. “However, the state has reserved its rights to discuss a shortlist of matters to be discussed with the developers.” 

Oil Search said it is committed to supporting the operator of Papua LNG (Total) and the PNG government, in resolving any final questions on Papua LNG gas agreement, so that the P’nyang gas agreement can be finalised and the PRL 15 and PNG LNG joint ventures can proceed into the front-end engineering and design phase of the integrated three train development in a timely manner.

The Papua LNG joint venture is also working collaboratively with the PNG Government on finalising the National Content Plan for Papua LNG, Oil Search added.

“This plan is aimed at maximising the involvement of PNG citizens and local businesses in the development and operation of the Papua LNG project,” Botten said.