• PNG Business News

Oil Search: Talks continuing


TEN legislative amendments to the Papua LNG project gas agreement were passed during the final quarter of 2019, according to Oil Search Ltd.

The company, a partner in the project, noted in its final quarter report that it was while detailed discussions took place between PRL 3 (P’nyang) joint venture and the Government on the terms for the P’nyang field development.

Managing director Peter Botten said: “In mid-October, 10 legislative amendments relating to the PRL 15 (Papua) gas agreement were passed by Parliament.

“In addition, discussions between the PRL 3 (P’nyang) joint venture and the PNG Government on the terms of the P’nyang gas agreement continued.

“The terms were not finalised by the end of 2019, which was the targeted timeframe. “However, negotiations recommenced early in 2020 and remain ongoing, with all parties striving to reach an equitable solution.”

Botten said key commercial agreements and pre-Feed (front-end engineering and design) activities for the three-train integrated development had been completed.

“And, subject to the completion of the P’nyang gas agreement, the joint venture participants are ready to progress the three-train LNG expansion into the Feed phase,” he said.

“Discussions with potential LNG customers in Asia continued during the quarter, with continued interest expressed by the market in contracting additional LNG volumes from PNG.

“However, we do not anticipate making any further tangible progress until the joint ventures enter Feed on the expansion project.”

Meanwhile, in mid-December, the Oil Search board approved entry into the Feed phase for the Pikka unit development on Alaska’s North Slope.

Source: https://www.thenational.com.pg/oil-search-talks-continuing/

PNG Business News

2nd Floor, Suite 6,

Corinthian Plaza Building,

Paseo De Roxas, Legaspi Village,

Makati, Philippines

Phone: +632 251 5599

Subscribe to Our Newsletter

  • White Facebook Icon

© PNG Business News