This coincides with the signing of the Fiscal Stability Agreement (FSA) yesterday.
In a statement, Minister Kua said the application for extension was received by the Department of Petroleum from the PRL 15 Joint Venture Partners on February 3rd and technical reviews followed until February 8th when the Petroleum Advisory Board (PAB) recommended to the Minister to grant the extension.
Minister Kua said the PRL 15 license has good standing in the last two terms (10 years) and the JV Partners have met work commitments under the license conditions.
He said the recent PAB approval to grant the extension is the final renewal of the last term.
The term of PRL 15 extension will apply from 30th November 2021, when the current term expires on 29th November.
A minimum budget of US$45 million will be expanded by the PRL 15 holders.
During the final five year term of the PRL15 extension, the JV Partners will conduct project financing activities and also strategic market studies which include the long term impact of the COVID-19 pandemic and timing of long-term LNG demand recovery to support the timely economic development of the Papua LNG Project. The Work program for PRL15 Extension include technical activities as appropriate to prepare for FEED and FID.
Work programs such as Social Mapping and landowner Identification under S. 47 of the Oil and Gas Act 1998 and all pre-requisites of sound Application for a Development License has been required under the final extension of PRL 15.
“The license conditions have a solid work program that my Department, through the PAB, has approved for the final term of the PRL 15 that should enable the Papua LNG Project JV Partners to undertake work that should consolidate on a solid APDL for the Project.