Santos, Exxon and Papua New Guinea to develop PNG gas field

Australian energy company Santos on Tuesday announced it had joined the Papua New Guinea government, Exxon Mobil Corp and JX Nippon to execute an agreement for the development of the P'nyang gas field.

The signing of the agreement in Papua New Guinea marks a major milestone for the project, ending years of uncertainty, setting out the fiscal framework and supporting project scoping and evaluation, and providing a clear framework for P’nyang’s future development.

Subject to a final investment decision by the P’nyang participants, the ExxonMobil-operated project would deliver LNG through new upstream facilities in the western province linked to existing infrastructure, including a PNG LNG plant near Port Moresby operated by Santos, the company said in a statement.

“The signing of the P’nyang project gas agreement demonstrates the commitment of all parties to the project and will bring economic benefits for the people of PNG when the project is developed,” Kevin Gallagher, Santos Managing Director and Chief Executive Officer, said in a statement.

Upon completion, up to five percent of P’nyang gas produced would also be made available to support the government’s electrification efforts in western province or another agreed location at Papua New Guinea, Santos said.