Papua LNG project gas agreement signed
Total, ExxonMobil and Oil Search have signed a gas agreement with the Independent State of Papua New Guinea defining the fiscal framework for the Papua LNG project. The agreement allows the partners to enter the front-end engineering design (FEED) phase of study that will lead to a final investment decision (FID) in 2020.
The 5.4mn t/y capacity Papua LNG project will consist of two LNG trains of 2.7mn t/y capacity each and will unlock over 1bn boe of natural gas resources. Gas production will be operated by Total, while the LNG plant will be developed in synergy with the ExxonMobil-operated PNG LNG project through an expansion of the existing plant in Caution Bay.
Total operates the Elk and Antelope onshore fields and is the largest shareholder of the PRL-15 permit, with a 31.1% interest, alongside partners ExxonMobil (28.3%) and Oil Search (17.7%), post the State back-in right of 22.5%.
According to Patrick Pouyanné, Chairman and CEO of Total, the Papua LNG project will benefit from ‘brownfield synergies with existing liquefaction facilities and the proximity to Asian markets’. He also noted that it ‘will further strengthen our [Total’s] position in the Pacific Basin and ensure our future LNG portfolio growth’.