Total, ExxonMobil and Oil Search have signed a Gas Agreement with Papua New Guinea in relation to the Papua LNG Project. The agreement means the partners can now commence the Front-End Engineering Design (FEED) phase of study that will lead to the Final Investment Decision in 2020.
Since a Memorandum of Understanding was signed in November 2018, the pre-FEED engineering studies and the environmental baseline survey have been completed.
Patrick Pouyanné, Chairman and CEO of Total said the finalisation of the agreement is a major milestone for Papua LNG project that confirms the commitment of all partners and the Government of Papua New Guinea to make the project a success.
“We are very pleased with the progress of this competitive LNG project that benefits from the brownfield synergies with existing liquefaction facilities and the proximity to Asian markets.”
The Papua LNG project of 5.4 million tonnes per annum (Mtpa) capacity will consist of two LNG trains of 2.7 Mtpa capacity each and will unlock over 1 billion barrels of oil equivalent of natural gas resources. The gas production will be operated by Total and the LNG plant will be developed in synergy with ExxonMobil-operated PNG LNG project through an expansion of the existing plant in Caution Bay.
Total operates the Elk and Antelope onshore fields and is the largest shareholder of the PRL-15 permit with a 31.1% interest, alongside partners ExxonMobil (28.3%) and Oil Search (17.7%), post the State back-in right of 22.5%.