CANADIAN oil and gas exploration company Eaglewood Energy has been offered what it says are the first petroleum infrastructure licences of their kind to be awarded in Papua New Guinea’s Western Province.

The licenses will grant Eaglewood the right to construct and operate a strategic gas condensate processing facility close to the Ubuntu Discovery.

The company is also licenced to build a strategic pipeline to deliver the condensate from these fields to a location on the Fly River from where it will be shipped to market.

Eaglewood has previously signed a participation agreement with commodity trader Trafigura.

Eaglewood chief executive Brad Hurtubise said the award was a significant milestone.

“The licences are also the first petroleum infrastructure licences in Papua New Guinea to be offered with the ‘strategic’ designation under the PNG Oil and Gas Act,” he said.

“The strategic designation of these licences will ensure transparent and open access to production infrastructure in this area of the Western Province,” he said.

“In addition to processing and transporting hydrocarbons from Ubuntu and PRL 21 fields, any additional available capacity in the system will permit further discoveries in the area to be developed more cost effectively and in a shorter timeframe, creating positive outcomes for Eaglewood, our partners, other exploration and production companies in the area and the State of Papua New Guinea.”

The award of the licences remains conditional on the establishment of an agreement the company and the government.