Papua New Guinea decision on Total gas deal expected on Tuesday
Papua New Guinea is set to announce its decision on Tuesday on a gas deal it sought to revise with France’s Total SA in a bid to extract more benefits for the country from a plan to double gas exports, one of the project partners said.
Papua New Guinea’s cabinet met on Monday to complete the review of the Papua LNG gas agreement that Total signed with the previous government in April, and is expected to release a ministerial statement later on Tuesday, Total’s partner Oil Search Ltd said in a statement.
The future of the gas deal was put into doubt after Prime Minister James Marape came to power in May, with his government promising to reap more benefits for the impoverished nation from its huge oil, gas and mineral resources.
The Papua LNG gas agreement is one of two agreements needed for Total and its partners Exxon Mobil Corp and Oil Search to go ahead with a $13 billion plan to double liquefied natural gas (LNG) exports from PNG.
The companies have insisted that the Papua LNG gas agreement that Total signed in April should be honored, and Oil Search warned in August that costs on the project could rise if prolonged talks delay it.
Oil Search’s shares, which have dropped over the past three months amid uncertainty over the gas agreements, rose 1% on Tuesday after it said an announcement was expected, while its main energy rivals were down around 0.2%.