MILESTONE GAS AGREEMENT EXECUTED FOR P’NYANG PROJECT

by PNG Business News - February 23, 2022

Photo credit: Santos Ltd

Santos has joined the Papua New Guinea Government and P’nyang project participants (affiliates of ExxonMobil and JX Nippon) to execute a gas agreement that provides a clear framework for P’nyang’s future development.

The signing of the gas agreement marks a major milestone for the project, setting out the fiscal framework and supporting project scoping and evaluation.

Subject to a final investment decision by the P’nyang participants, the ExxonMobil-operated P’nyang project would deliver LNG through new upstream facilities in Western Province linked to existing infrastructure, including our world-class PNG LNG plant near Port Moresby.

Upon completion, up to five per cent of P’nyang gas produced would also be made available to support the government’s electrification efforts in Western Province or another agreed location.

Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said he welcomes today’s gas agreement and looks forward to supporting the operator to develop this valuable resource for the region and as long-term backfill for existing LNG infrastructure.

“The signing of the P’nyang project gas agreement demonstrates the commitment of all parties to the project and will bring economic benefits for the people of PNG when the project is developed,” Mr Gallagher said.

“I thank the PNG Government and the government of Western Province for their partnership with the P’nyang participants to move towards P’nyang project development, which is proposed to commence following delivery of the Papua LNG project.

“The P’nyang project will provide landowner benefits under a benefit sharing agreement to be negotiated in the future. Development of P’nyang will create local and regional jobs and business opportunities, provide training and skills development opportunities and help build stronger communities.”

The P’nyang gas field is within PRL3, located in the Western Province of Papua New Guinea. Santos has a 38.5 per cent interest in P’nyang.

 

Article courtesy of Santos Ltd



Related Articles

Oil and Gas

PNG Business News - August 26, 2021

Kua: P’nyang Ready for Negotiations

Exxonmobil PNG and the government have joined forces to ensure that the P'nyang gas project in Western Province is ready for negotiations in the coming weeks. The project's letter of intent was signed, paving the way for it to get off the ground. The P'nyang project has been on the table since 2019 when the State began looking into the possibility of signing a gas deal with ExxonMobil and its joint venture partners as project developers. According to Minister of Petroleum Kerenga Kua, these negotiations were concluded in January of last year, allowing both the State and ExxonMobil to take a breather and rethink their respective strategies. “We are grateful that Exxon is now prepared to invite us to recommence our discussions one more time. “This time we intent on making sure that we cross the line bring all good faith and sincerity to the negotiations to enable us to reach some terms and conditions that are satisfactory to both sides so that the project can happen for all our mutual benefit,” Minister Kua said. He explained that negotiating a project agreement is difficult since developers have their own internal standards and the state has its own expectations. “I can only be hopeful and encourage Exxon to attempt to understand where we are coming from to help us to realise some of the revenue returns back to the country. “This process will start very shortly. We are hoping that around 9th or 10th of September the parties can convene in one room and try to stress out terms and conditions to potentially develop this project,” he said. Peter Larden, managing director of ExxonMobil PNG, praised the Papua New Guinea government for taking this critical step ahead in the development of the P'nyang project. He stated that the initiative will benefit all stakeholders directly and will encourage continuing investment and growth in the nation, as well as increasing capacity and ensuring the social and economic well-being of Papua New Guineans. “The intent to develop the P’nyang field helps demonstrates the encouraging growth opportunities for our operations here in Papua New Guinea and together with our joint venture partners, we look forward to working closely with the government and the landowners to progress the P’nyang field development proposal and secure the license as needed to develop this resource,” Larden said. “I thank the PNG Government for its support and I look forward to progressing our discussions.”   Reference: Yafoi, Melisha. Post-Courier (23 August 2021). “Kua: P’nyang On The Table For More Talks”.

Oil and Gas

PNG Business News - September 09, 2021

‘Re-engagement on P’nyang, very positive for PNG’ - Smaré

President of the Papua New Guinea Chamber of Mines and Petroleum, Anthony Smaré, has applauded the Marape-Basil government, Petroleum Minister Kerenga Kua, ExxonMobil PNG, and their joint venture partners for agreeing to reengage in negotiations on the P’nyang project in Western Province. Mr. Smaré said “In light of the extremely challenging economic conditions in PNG, the P’nyang and Papua LNG projects, are projects that are desperately needed to be kick-started to kick-start the country’s stagnant economy creating jobs, bringing in foreign exchange and providing opportunities for PNG businesses, particularly SMEs in the impacted areas”. “I congratulate the Prime Minister, Minister Kua, the SNT and Exxon Mobil and its partners for restarting these negotiations, and strongly encourage them to secure a win-win outcome that sees the progress of the P’nyang project in the near term, and in turn helping PNG and our people.” In making the announcement of re-engaging in negotiations on P’nyang, on August 20###sup/sup###, Petroleum Minister Kerenga Kua highlighted the economic importance of these two projects alone. “The benefits of phasing the construction of both Papua and P’nyang projects over an eight-year period shall be a substantial boost to the economy and the country. “This tremendous investment would extend our gas pipeline infrastructure into the country’s Western Province and have a meaningful and lasting economic impact for Papua New Guinea and its people,” Minister Kua said. He also announced that there would be a series of workshops regarding the development of the P’nyang Gas Fields, and if these continued unhindered, an expected signing of a P’nyang Heads of Agreement could be expected by end of this month, with a Gas Agreement to follow. “While there continues to be misinformation on the true impact of resource projects in the country, the government remains fully aware that projects which remain in the pipeline, will not be able to effect much financial benefit, until they are negotiated and commissioned. “This announcement by government of re-engaging with ExxonMobil PNG and its joint venture partners on the P’nyang project, is an extremely positive step in the right direction,” Mr. Smaré said.   Article Courtesy of the PNG Chamber of Mines and Petroleum 

Oil and Gas

PNG Business News - June 01, 2021

Government Intends to Move on with P'nyang Gas Project

Photo credit: Santos The National Government is set to concluding all project discussions for the $US11 billion P'nyang gas project by the third quarter of 2021. This, according to Petroleum Minister Kerenga Kua, will provide project partners enough time to obtain Sales and Purchase Agreements (SPA) and achieve a Final Investment Decision (FID) by 2023, when the new LNG project opportunity window to absorb a large amount of LNG from within the area is still available. According to Kua, the project's development may serve as a catalyst for the development of marginal and stranded gas resources and prospects in the Western Papua Basin, which is located in the Western and Gulf provinces. He claimed that the P'nyang deposit, when coupled with the remainder of the stranded gas in the Western Papuan Basin, could provide up to 16 TCF of gas and 200 million barrels of condensate. “Since we have a good traction on Papua LNG project with Total E&P fully committing to it, the Government will now re-appoint a new State Negotiating Team to start reengaging with ExxonMobil,” Kua said. According to him, the initial intention is to build a third LNG train alongside the two Papua LNG trains, each having a capacity and specification of 2.7 MTA of LNG production. “However, the P’nyang gas development will have a huge impact on the monetization of other smaller stranded gas fields in the Western and Gulf provinces and can be aggregated as a stand-alone, used as a backfill for the PNG LNG project together with Juha and Muruk in the Northwest fold-belt as a utilised project, or deliver alongside Papua LNG as initially planned with reference to the set re-negotiation closing date,” Kua said. “The benefits of spreading the construction period for both Papua and P’nyang projects over an 8 years’ period shall be massive for the country.” According to the Field Development Plan and the Open Book Economic Model provided by ExxonMobil, the spread will be over a decade of continuous intense industrial activity before to and after construction, with total Capital Expenditure Investment for P'nyang alone estimated at $US11 billion. “P’nyang Gas Agreement is one of my KPIs as the responsible Minister, and once the new SNT and ExxonMobil agrees on the key fiscal and non-fiscal term sheets, then the Petroleum Advisory Board will be able to convene and make the final recommendation to the Minister off Petroleum either to grant or refuse the application for the Grant of Petroleum Development Licence,” Kua said.   Reference: Post-Courier (21 May 2021). “Government To Advance P’Nyang Gas Project.”


Recent Articles

Company

PNG Business News - May 16, 2022

Get over it... with PNG Forest Products' NiuBridge

Photo: NiuBridge on the Boluminski Hwy, New Ireland, PNG You know how they say, “Build a bridge… and get over it”?  Well with PNGFP NiuBridge you don’t have to build it, because it’s already built! These expertly designed and engineered modular bridges are prefabricated to your specifications by PNG Forest Products. With a design life of 50+ years and installed cost base typically under half that of equivalent concrete or steel, NiuBridge is the ideal, most cost-effective solution for bridging installations in Papua New Guinea.  The NiuBridge System includes deck, girders, kerbing and accessories, and comes with a pre-applied bitumen surface. Little maintenance is required thanks to PNGFP’s unique veneer preservation treatment, ensuring complete protection from termites and rotting. NiuBridge is manufactured from PNG plantation pine to both AS/NZS 2269 and AS/NZS 1604 standards and exploits the advantages of natural timber, which is not subject to fatigue failure, unlike other materials such as steel and concrete. Available in single lane, dual lane, or custom design, NiuBridge is suitable for a range of load conditions including Austroads T44 and AS 500 Bridge Design.  NiuBridge and sister product NiuDeck are widely used by local and state governments across Australia. The peak body for the timber industry in Queensland has welcomed these products as a demonstration of the versatility and innovation of using Engineered Wood Products in bridge construction. “Using prefabricated timber systems in bridges is gaining greater market recognition due to their inherent strength, light weight and low carbon emissions footprint compared to other construction materials”, said the CEO of Timber Queensland, Mick Stephens. So next time you need to get over it, don’t waste valuable time and loads of money building a bridge. Buy a NiuBridge and get over it sooner and more cost effectively!

Company

PNG Business News - May 16, 2022

Need help with to live, work and study in Australia and with student enrolments in EQI accredited schools? Ask Migration Plus!

Photo credit: Migration Plus Migration Plus is a leading Migration firm in Cairns, in the Far North Queensland region providing professional migration advice to students, individuals, government, businesses and corporate groups including the mining, hospitality, tourism, agricultural and air services industries. Migration Plus are also Education Agents with Qualified Education Counsellors on their team and they represent a number of reputable universities and colleges across Australia, including Education Queensland International (EQI) for student enrolments.  They work closely with EQI and have successfully assisted PNG students enrol in schools across Queensland and also assisted with visa applications for the students for many years.   With Australian borders opening to international visitors, temporary workers and international students, they can assist you with all migration matters for your business and family to visit, work or study in Australia.  Now is the time to start your children’s enrolment to study in any of the EQI’s accredited schools from Prep to Year 12.  Education Counsellors at Migration Plus can assist your children’s enrolment for Year 10, Semester 2, the important pathway into senior high school subjects through the Senior Education and Training Plan. Semester 2 commences in July 2022. With an in-depth knowledge of migration law, their specialist team provides a complete solution to your migration requirements and coordinate all facets of your migration needs. The Migration Plus team is very passionate about what they we do – the rewards of being able to assist in changing lives and helping clients achieve their goals is first and foremost.  With over 90 years of combined experience available to you, you can count on their highly specialised team for accurate advice. Contact the Specialist team for further information.

Business

Marcelle P. Villegas - May 16, 2022

Australia Opens Its Doors to International Students

Photo credit: Education Queensland International “International students are an important part of the Australian community, and we are excited to welcome them back to our classrooms, campuses and communities.”  This was the announcement posted on their website by the Australian Government last February to herald the reopening of international travel to students. “Australia’s borders are open to fully vaccinated international students and Temporary Graduate (subclass 485) visa holders.” [1] “From 21 February 2022, all visa holders who are fully vaccinated for international travel purposes can travel to Australia without a travel exemption. Unvaccinated visa holders will still need to be in an exempt category or hold an individual travel exemption to enter Australia.” [2] The Australian Government said that international students will be subject to Australian Government border restrictions and any State and Territory quarantine and testing requirements. Quarantine and testing arrangements for State and Territories are frequently changing. Therefore, international students are advised to visit www.Australia.gov.au/states to be updated with the latest information and announcements of the Australian Government. In relation to this, the Department of Education, Skills and Employment has developed a “factsheet on the reopening of international travel to students” which is available for downloading from the website. [3] “All visa holders who are fully vaccinated in accordance with Australia’s international border entry requirements are able to arrive in Australia without needing an approved travel exemption. This includes fully vaccinated international students.” [1] Here are more important reminders from the Australian Government: People who do not meet Australia’s vaccination requirements for international travel must apply for a travel exemption to travel to Australia, unless they are in an exempt category. Visa holders who arrive in Australia may have their visa cancelled and be detained and removed if they: are not fully vaccinated for international travel purposes in accordance with Australia’s border entry requirements; or do not have a medical contraindication to a COVID-19 vaccine as defined by the Australian Government; or are not in an exempt category or hold an individual travel exemption. To be considered as “fully vaccinated for international travel purpose” to or from Australia, one should have completed a primary course of a vaccine approved or recognized by the Therapeutic Goods Administration (TGA). This includes mixed doses. The currently approved or recognised vaccines for travel are the following: Two doses at least 14 days apart of AstraZeneca Vaxzevria, AstraZeneca Covishield, Pfizer/Biontech Comirnaty, Moderna Spikevax or Takeda, Sinovac Coronavac, Bharat Biotech Covaxin, Sinopharm BBIBP-CorV (for people under 60 years of age on arrival in Australia), Gamaleya Research Institute Sputnik V, Novavax/Biocelect Nuvaxovid. Single-dose dose of Johnson & Johnson/ Janssen-Cilag COVID Vaccine are also in the list of approved and recognized vaccines. “At least 7 days must have passed since the final dose of vaccine in a course of immunisation for you to be considered fully vaccinated for international travel purposes. Mixed doses count towards being fully vaccinated as long as all vaccines are approved or recognised by the TGA.” How about exceptions for vaccination requirements and arrangement for children? “People with acceptable proof they cannot be vaccinated for medical reasons, and children under 12, can access the same travel arrangement as people who are fully vaccinated for international travel purposes.” Moreover, temporary visa holders who are younger than 18 years old at the time of departure for international travel to Australia do not require an approved travel exemption when the child is travelling with at least one adult who is fully vaccinated for international travel purposes. “Unvaccinated or partially vaccinated children aged 12-17 years old entering Australia may be exempt from passenger caps and eligible for reduced quarantine requirements. Travellers should always check the quarantine requirements for the state or territory they plan to travel to, or transit through, prior to arranging their travel.” “If the child is travelling with unvaccinated adult family members, then the entire family group will be subject to managed quarantine and passenger caps.” For more information on vaccination travel requirements, quarantine rules, and other related matter, visit https://covid19.homeaffairs.gov.au/vaccinated-travellers.   Reference: [1] https://www.dese.gov.au/reopening-international-travel-students [2] https://covid19.homeaffairs.gov.au/vaccinated-travellers [3] Factsheet on the reopening of international travel to students https://www.dese.gov.au/reopening-international-travel-students/resources/factsheet-reopening-international-travel-students

Join Papua New Guinea's

Business Community

Be the "First" to get our exclusive Digital Magazine & Weekly Newsletter.