P'nyang

Prime Minister Marape announced this in a statement after negotiations between the SNT and ExxonMobil failed to reach an Agreement on the P'nyang LNG Project.

The Prime Minister stated his displeasure over ExxonMobil failing to migrate towards a mid-point which the State takes home a better deal, instead of terms similar to concession-based gas agreements PNG.

He said he is satisfied that the SNT has subscribed to the mandate bestowed upon Petroleum Minister, Kerenga Kua, and ExxonMobil has been told what their intentions are.

In a statement the company said it respects the Government’s right to set fiscal terms for resource developments, to ensure PNG receives an appropriate share of value.

However, under the terms proposed by the State, the joint venture partners, including Oil Search, were unable to obtain a return on their investment that made the project investable and bankable.

He said the P’nyang Project will be a stand-alone project that will form an integral part of Western LNG whose combined processing facility will be built near Daru in Western Province.

Currently, Western Province has two other upcoming gas projects apart from P’nyang which include Elevala Ketu and Stanley Gas with Juha already running under PNG LNG Project.