Oil Search Ltd has welcomed the progress made in moving forward the US$12 billion (K41.38 billion) Papua LNG project.
Total, the operator of the project, and joint venture partners ExxonMobil and Oil Search signed a fiscal stability agreement with the Government on Tuesday.
The agreement is seen as the final step envisioned under the Papua LNG gas agreement to guarantee the project fiscal stability.
Amendments to relevant legislations were passed by Parliament last November.
Oil Search managing director Dr Keiran Wulff said: “We are pleased to see further progress achieved on the Papua LNG.
“This milestone highlights the commitment from the Government towards Papua LNG and is a significant step in de-risking the project.
“It also demonstrates increasing alignment between the Government and the joint venture partners.
“We look forward to progressing the Papua LNG and announcing further milestones consistent with our strategic review announced last November.”
Total managing director Jean-Marc Noiray said they were keen on embarking on the “whole stabalisation of the project”.
“The Feed (front end engineering design) itself will last between 15 and 18 months, from the moment we reach the final investment decision,” he said.
“And from final investment decision to first gas, we have about four years of construction.
“It’s a long journey before we get to the first gas, and the first revenues for the developers and the country.”
The National / Pacific Mining Watch
Next : O'Neill welcomes PNG's new K41billion LNG project agreement