Oil Search Managing Director Botten welcomes PNG Govt's amendments Bills on Papua LNG
OIL Search has welcomed the passing of 10 Amendment Bills by Parliament relating to the Papua LNG gas agreement.
Managing director Peter Botten, pictured, said it was “a major step forward for the project”.
“In early September, Cabinet completed its review of the Papua LNG gas agreement, validating the agreement executed on April 9, 2019,” he said.
Oil Search’s 2019 third quarter result was released yesterday.
“Discussions between the PRL 3 Joint Venture and the Government on the P’nyang gas agreement recommenced late in the third quarter, with the agreement targeted to be signed before year end,” he said.
“The completion of the P’nyang gas agreement will allow this world-class, three-train integrated brown field LNG expansion project, underpinned by gas from P’nyang and Papua LNG, to proceed into the FEED phase.
“With the necessary agreements for Papua LNG to access the PNG LNG downstream facilities essentially completed in the first half of 2019, the PRL 15 and PNG LNG joint ventures made good progress on several other required agreements, including the integrated Lifting and Tank Balancing Agreement.”
Botten said following the execution of the PRL 3 binding Letter of Intent with Santos in the second quarter, the PRL 3 Joint Venture commenced negotiations on a fully termed Sales and Purchase Agreement.
“Oil Search expects the SPA to be executed, together with the full suite of integration agreements, at FEED entry.”
He said Oil Search continued to engage with buyers in North East Asia during the period, as well as with LNG traders, who were becoming more active in seeking long-term project off-take.
“Talks with potential buyers are expected to intensify once the expansion projects enter FEED.”