Papua New Guinea is to hold discussions with ExxonMobile on the potential development of P’nyang gas field in the country's Western province soon.
This followed signing of a “letter of intent” by the two parties last Monday.
Papua New Guinea Petroleum Minister Kerenga Kua told a media briefing last Friday that the project represented an important potential revenue for the State.
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| Photo. ExxonMobile Billboard |
“We started the process of negotiations on Nov, 15, 2019, and explored the possibilities of there being a gas agreement signed between the State and ExxonMobil on behalf of the developers,” he said.
“We wound up our negotiations last January to give ourselves a break to reconsider our respective approaches.
“We are grateful that Exxon is now prepared to invite us to recommence our discussions one more time.
“This time, we are intent in making sure that we cross the line, we bring in all good faith and sincerity into the negotiations to reach some terms and conditions that are satisfactory to both sides so that the project can happen to all our mutual benefit.
“The State is always battling for finance to meet the demands of our people in all the developmental aspects of this country.
“Every new project proposal that comes to our table represents an important potential for us to develop additional revenue to assist us.
“This process (discussions) will start very shortly.
“To show we are sincere this time than before, we have executed a letter of intent on Aug 16.
“The actual negotiation process will start in about a week or two.”
ExxonMobil PNG Ltd managing director Peter Larden said the intent to develop P’nyang field demonstrated growth opportunities for the company’s operations in the country.
“This is an important step towards alignment between parties on the terms of a gas agreement to facilitate the project to develop P’nyang gas field just North West of our existing facilities at Hides,” Larden said.
“Together with our joint venture partners, we look forward to working closely with the Government and the landowners to progress the P’nyang field development proposal and secure licenses needed to develop this resource.”
Statement/TheNational/PacificMiningWatch