Photo credit: Richard Dellman - EMTV
The Oil and Gas (P'nyang LNG Project) (Amendment) Bill 2021 was just enacted by Parliament.
The development partners in the P'nyang LNG Project will now be able to submit for an application and a petroleum development license as a result of this adjustment.
When introducing the bill in Parliament, Minister for Petroleum KerengaKua stated that the purpose of the amendment Act to the Oil and Gas Act 1998 is to ensure that the state and the P'nyang gas project participants can execute a gas agreement similar to the one envisioned by the Heads of Agreement signed between the state and ExxonMobil on September 28, 2021.
According to Mr Kua, this ensures that the P'nyang gas project would not be impacted by the Oil and Gas Amendment Act of 2020.
“The Oil and Gas P’nyang LNG Project amendment bill 2021 only concerns the P’nyang LNG project alone and any application for a petroleum development licence for the P’nyang LNG project and not any other gas agreement or project or petroleum development licence in PNG. It confirms that, the changes brought about the 2020 amendments will not create any inconsistencies with the application process for the P’nyang LNG project for a Petroleum development licence which the project want us to have applied for in,” he said.
Minister Kua noted that the application for the P'nyang field petroleum development licence was submitted prior to the 2020 changes, and transitional clauses did not take this into account, making the application for the P'nyang gas project subject to the 2020 amendments.
“The gas agreement for the P’nyang gas project is anticipated to be concluded within December this year. Which will essentially include the broad terms which includes the preservation of the receipt in place prior to the 2020 amendments.
It is important to note that the proposed amendment to the oil and gas amendment act will assist further negotiations and processing of application for the petroleum development license which is to follow.” he said.
Reference: Post-Courier (3 December 2021). “P’nyang LNG Project Amendment Passed”.
