Santos today joined the Government and P’nyang project participants (affiliates of ExxonMobil and JX Nippon) to execute a gas agreement that provides a clear framework for P’nyang’s future development.
The signing of the gas agreement marks a major milestone for the project, setting out the fiscal framework and supporting project scoping and evaluation.
Upon completion, up to five per cent of P’nyang gas produced would also be made available to support the government’s electrification efforts in Western Province or another agreed location.
Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said he welcomes today’s gas agreement and looks forward to supporting the operator to develop this valuable resource for the region and as long-term backfill for existing LNG infrastructure.
“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,” Mr Gallagher said.
He thanked the Government and the Western Province government for their partnership with the P’nyang participants to move towards P’nyang project development.
“The P’nyang project will provide landowner benefits under a benefit sharing agreement to be negotiated in the future. Development of P’nyang will create local and regional jobs and business opportunities, provide training and skills development opportunities and help build stronger communities.”
The P’nyang gas field is within PRL3, located in the Western Province with Santos having a 38.5 per cent interest in P’nyang.