Exxon Responds to PNG Unrest, Kidnap

ExxonMobil has suspended “non-essential” work in Papua New Guinea due to unrest in the region and after one of its staff members was taken hostage, the company said November 23.

“Due to recent community tension in the Highlands (Hides, Angore, Komo), ExxonMobil PNG has suspended non-essential work,” a spokesperson for the company said.  “Non-essential” personnel are being re-deployed to other areas but “the Hides Gas Conditioning Plant is continuing to operate.”  Gas is piped from there to the liquefaction terminal on the coast, near the capital Port Moresby, for export.

ExxonMobil operates PNG LNG. In 2016 PNG LNG exported 7.9mn metric tons of LNG, up 14% from its 6.9mn mt/yr nameplate capacity. The $19bn project started up ahead of schedule in April 2014.

There is reportedly frustration in the area due to disputes over royalties from the LNG project and an ExxonMobil staff member was recently taken hostage. 

“We are taking very seriously the incident which involved the abduction of a member of our staff in Angore last week. The person was quickly and safely released due to the efforts of the PNG police and the strength of our relationships within the local community,” the spokesperson said.

As the police investigation is ongoing, she said it would not be appropriate to comment further on that, or on the impact or potential impact to ExxonMobil’s operations, citing safety and security reasons.

“Separately, we are monitoring landowner concerns in relation to royalty and equity dividends and are assisting the [PNG] Department of Petroleum and Energy in its efforts to ensure landowners receive these benefits as soon as practicable,” she said, adding that ExxonMobil was continually monitoring the situation.