Papua New Guinea expects to conclude negotiations for three new LNG projects- Pynang, Papua and Pasca by early next year (2019) and enter into final investment decisions (FIDs) well before 2020.
Team leader of the State’s negotiating team, Chief Secretary Issac Lupari confidently announced this yesterday in Port Moresby and said they are on track.
Pynang is in the Western Province which is led by ExxonMobil, Papua will be undertaken by Total and Pasca by Twinza Oil and Gas. Papua and Pasca are both located in the Gulf of Papua.
“We have been working to put a team together to support the negotiating team to prepare for the three projects, “ said Mr Lupari.
“Since our establishment up until now, we have presentations from the three companies interms of the work they have done for us to understand where they are- and whether they are ready for us to commence negotiations which also looks at the technical work, the drilling and so forth.”
Mr Lupari said one of the main concerns that they have conveyed to all three companies is to provide all relevant information that is required under the Oil and Gas Act.
“They have done that so far and I need to report to the nation that ExxonMobil has submitted their application that they term as the APTF- that is the document that the State team will use to do its assessment.”
According to him, Twinza has also submitted its APTF and Total will be submitting theirs in August.
Lupari said besides that, the State team has also been looking at the project matrixes, which is like the term sheets of the negotiation team.
Mr Lupari also said part of thr exercise is to engage with legal and financial advisors to develop workable technical and economic models for application in the three projects.
“So all that work is in progress as we speak,” he said, adding; “The window of opportunity is between now and 2020 and if don’t get the projects to the final investment decisions (FIDs) by then, we will miss the opportunity”.
International oil and gas market specialist Dr Fedeidun Fesaraki, who was guest speaker at the recent Petroleum and Mining Summit in Port Mroesby, said the key issue now for PNG to expand its LNG potential is timing.
“Basically Papua New Guinea has very good conditions. Prices are low, trends are good, costs are very reasonable and the environment is perfect for the two new trains of LNG and an additional one for the PNG LNG.
“It’s even more urgent than few months ago because many projects are preceding the equity financing which means that they don’t need to wait til they find customers, they will go foward and do it with their own money because their are so confident that the LNG market is going to be so good,” Dr Fesaraki said.
Dr Fesaraki also attributed the enthusiasm of the developers for the new projects to the successful delivery of the PNG LNG ahead of schedule and within budget.
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Team leader of the State’s negotiating team, Chief Secretary Issac Lupari confidently announced this yesterday in Port Moresby and said they are on track.
Pynang is in the Western Province which is led by ExxonMobil, Papua will be undertaken by Total and Pasca by Twinza Oil and Gas. Papua and Pasca are both located in the Gulf of Papua.
“We have been working to put a team together to support the negotiating team to prepare for the three projects, “ said Mr Lupari.
“Since our establishment up until now, we have presentations from the three companies interms of the work they have done for us to understand where they are- and whether they are ready for us to commence negotiations which also looks at the technical work, the drilling and so forth.”
Mr Lupari said one of the main concerns that they have conveyed to all three companies is to provide all relevant information that is required under the Oil and Gas Act.“They have done that so far and I need to report to the nation that ExxonMobil has submitted their application that they term as the APTF- that is the document that the State team will use to do its assessment.”
According to him, Twinza has also submitted its APTF and Total will be submitting theirs in August.
Lupari said besides that, the State team has also been looking at the project matrixes, which is like the term sheets of the negotiation team.
Mr Lupari also said part of thr exercise is to engage with legal and financial advisors to develop workable technical and economic models for application in the three projects.
“So all that work is in progress as we speak,” he said, adding; “The window of opportunity is between now and 2020 and if don’t get the projects to the final investment decisions (FIDs) by then, we will miss the opportunity”.
International oil and gas market specialist Dr Fedeidun Fesaraki, who was guest speaker at the recent Petroleum and Mining Summit in Port Mroesby, said the key issue now for PNG to expand its LNG potential is timing.
“Basically Papua New Guinea has very good conditions. Prices are low, trends are good, costs are very reasonable and the environment is perfect for the two new trains of LNG and an additional one for the PNG LNG.
“It’s even more urgent than few months ago because many projects are preceding the equity financing which means that they don’t need to wait til they find customers, they will go foward and do it with their own money because their are so confident that the LNG market is going to be so good,” Dr Fesaraki said.
Dr Fesaraki also attributed the enthusiasm of the developers for the new projects to the successful delivery of the PNG LNG ahead of schedule and within budget.
Next :