PNG’s Prime Minister James Marape has declared that announced that the onshore P’nyang Project and the offshore Pasca condensate field developments “are definitely going ahead.”
The PM also announced that he had paved the way for the US$20 billion, Total-operated Papua LNG Project with the passage of six important pieces of legislation by Parliament.
Prime Minister Marape said discussions on P’nyang said following a meeting with Total on the Papua LNG Project took place, discussions on P’nyang would be held.
The development of the large P’nyang gas field is seen as a critical component of the expansion of the PNG LNG Project and the Papua LNG development.
“What is happening is that we are allowing for Papua LNG to move ahead,” the PM said.
“Let me place on record my appreciation to Total, ExxonMobil and Oil Search for firstly, their patience; anf secondly for their understanding, and; thirdly for us to clear a space in which we could advance Papua LNG whilst at the same time discussions around P’nyang are running for us to find a pathway forward.
“Minister Kua will also be very soon announcing a small, but very important, condensate project that also has some elements of gas and that is the Pasca Field offshore in Gulf Province.
“Pasca Field will also be a benchmark pacesetter in so far as how we want to secure deals for the country, going into the future.
The PM declared that the passage of the six consequential legislative amendments will ensure Papua LNG has the full support of law for it to get off the ground.
“I thank our development partners and we look forward to working with our investors to progress Papua LNG.
“I am comforted to know that despite COVID-19 and global economic contractions, our investors have assured me of their firm commitment to Papua LNG.
“A high-level delegation of Total officials will be visiting the country to work with Government and all its partners in progressing to the Papua LNG Project.
“I would like to also thank ExxonMobil and Oil Search for tolerance to my Government’s quest to secure better and fairer project agreements for the country.”
Oil Search, a JV member of both the PNG LNG and Papua LNG projects said discussions are ongoing between all parties on progressing LNG expansion opportunities in PNG.
“This coincides with a strengthening in demand and a potential improvement in the LNG price outlook, despite the COVID-19 impact on global energy and LNG demand pushing back the demand window to around 2027,” the company told shareholders.
