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ExxonMobil and Papua New Guinea Sign P’nyang Gas Agreement
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Rhea-AI Summary
ExxonMobil has signed a gas agreement for the P’nyang LNG project with Ampolex Limited and the Papua New Guinea government. This partnership aims to develop new upstream facilities in Western Province, linked to existing infrastructure, with an estimated gas reserve of 4.36 trillion cubic feet. The agreement provides a fiscal framework for the project, enhancing economic growth opportunities in Papua New Guinea. The project could create local jobs and improve electrification efforts, while ExxonMobil explores additional equity interests.
Positive
Gas agreement signed for P’nyang LNG project, enhancing development framework.
Estimated 4.36 trillion cubic feet of gas reserves in P’nyang field.
Project expected to create jobs and drive economic growth in Papua New Guinea.
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Agreement provides clear framework toward P’nyang project’s future development
ExxonMobil-operated P’nyang project would link new upstream facilities in Western Province to existing infrastructure
IRVING, Texas--(BUSINESS WIRE)--
ExxonMobil subsidiary Esso PNG P’nyang Limited, Ampolex Limited, and the Independent State of Papua New Guinea have signed the P’nyang project gas agreement for the proposed development of the P’nyang LNG project.
Subject to a final investment decision by the P’nyang project co-venturers, the ExxonMobil-operated P’nyang project would deliver LNG by constructing new upstream facilities in Western Province linked to existing infrastructure. The agreement provides the fiscal framework for the project and supports project scoping and evaluation. The P’nyang field is estimated to have 4.36 trillion cubic feet of gas.
“On behalf of ExxonMobil and the other co-venturers, I thank the PNG national government along with the government of Western Province for their partnership in moving the P’nyang project forward,” said Liam Mallon, president, ExxonMobil Upstream Oil and Gas. “The P’nyang project gas agreement marks a significant milestone and underscores the intent of all stakeholders to set a clear framework toward the P’nyang project’s future development.”
The P’nyang development in Western Province is proposed to commence following the Papua LNG project, which will be located in Gulf Province. The phased approach to gas development would support ongoing economic growth in Papua New Guinea. The P’nyang project will be an independent project with landowner benefits to be provided under a future benefit sharing agreement to be negotiated by the State in accordance with the Oil and Gas Act.
ExxonMobil is continuing to work with the government regarding their interest in purchasing additional equity in the project.
The P’nyang project would provide about four years of additional construction activity after Papua LNG and drive economic benefits for the country and participating provinces. Upon completion, the P’nyang project would make available up to five percent of gas produced to Western Province or another agreed location to support the government’s electrification efforts.
The project would support job creation in Western Province and other involved provinces, with the Papua New Guinean workforce and local businesses benefiting from economic opportunity as well as training and skills development programs. In parallel, social investment initiatives in collaboration with the provincial and national governments as well as community stakeholders are designed to further enhance community livelihoods.
The P’nyang field is located within Petroleum Retention License 3, which covers 105,000 acres (425 square kilometers). Esso PNG P’nyang Limited, a subsidiary of Exxon Mobil Corporation, operates the license and, together with Ampolex (Papua New Guinea) Limited, has a 49 percent interest. Affiliates of Santos and JX Nippon have a 38.5 percent interest and 12.5 percent interest respectively.
About ExxonMobil
ExxonMobil, one of the largest publicly traded international energy companies, uses technology and innovation to help meet the world’s growing energy needs. The term “ExxonMobil” is used for convenience, and may include any one or more of Exxon Mobil Corporation or any affiliate either directly or indirectly stewarded. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world. To learn more, visit exxonmobil.com and the Energy Factor.
Statements of future events or conditions in this release are forward-looking statements. Actual future results, including project plans, schedules, capacities, production rates, timing, and resource recoveries could differ materially due to: changes in market conditions affecting the oil, gas, LNG and chemical industries or long-term oil, gas and LNG price levels or contract terms; political or regulatory developments including obtaining necessary regulatory permits; restrictions in trade, travel or broader government responses to current or future waves of COVID-19; reservoir performance; the outcome of future exploration and development efforts; technical or operating factors; the outcome of commercial negotiations; unexpected technological breakthroughs or challenges; and other factors cited under the caption “Factors Affecting Future Results” on the Investors page of our website at exxonmobil.com and under Item 1A. Risk Factors in our annual report on Form 10-K. References to “recoverable resource” include quantities of oil and gas that are not yet classified as proved reserves under SEC rules but that are expected to be ultimately recoverable and are provided on a gross basis.
