(Adds announcement about ExxonMobil's LNG team)

France’s Total and joint venture partners ExxonMobil and Oil Search have signed a fiscal stability agreement with the government of Papua New Guinea for the Papua LNG project, Oil Search said on February 10. 

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The fiscal stability agreement is the final step envisioned under the Papua LNG gas agreement to guarantee Papua LNG fiscal stability, the company said. It follows the amendments to acts passed by the PNG parliament in November 2020. 

“We are pleased to see further progress achieved on Papua LNG. This milestone highlights the commitment from the PNG government towards Papua LNG and is a significant step in derisking the project,” Keiran Wulff, Oil Search’s managing director, said. “It also demonstrates increasing alignment between the PNG government and the joint venture partners” 

Oil Search, ExxonMobil and France's Total had planned to develop the proposed Papua LNG project and expand the existing PNG LNG plant in tandem. The expansion of PNG LNG plant capacity is dependent on the P’nyang gas agreement, which is yet to be concluded. 

Total has now decided to take the Papua LNG project forward fed by the Elk-Antelope gas fields. The Papua LNG project of 5.4mn metric tons/year capacity will consist of two trains of 2.7mn mt/yr capacity each. 

Change at ExxonMobil LNG 

ExxonMobil's former managing director of ExxonMobil Papua New Guinea (PNG) Andrew Barry took over the reins from Alex Volkov at the US major's global LNG marketing team in January. Volkov joins the company's Integrated Solutions group as commercial vice president. Barry's place in Port Moresby will be taken by Peter Larden, from the company's Canada office.

Barry said he would "use my experiences in LNG to build on ways to increase our competitiveness, develop new ways to serve the needs of our customers, and continue to supply the world with the energy we all need.”

As managing director of the LNG plant in New Guinea for six years, Barry brought the project from development to production, avoiding the missed deadlines and budgets that had plagued other projects, most notably off Australia. Barry said the company's LNG portfolio "is well positioned to support the dual energy challenge of delivering energy whilst reducing environmental impact.”