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Png Lng Gas Agreement

Oil Minister Kerenga Kua said at the time that Papua`s LNG tax conditions were only a slight improvement over the original PNG LNG project. He added, however, that the government of Papua New Guinea expected the P`nyang agreement to continue and bring much better fiscal and economic benefits to the country. Discussions on P`nyang were suspended earlier this year when the government attempted to revise Total`s LNG agreement in Papua. This agreement was finally approved in early September with minor concessions from Total. Prime Minister Peter O`Neill said friday in Port Moresby, the capital, that “physical conditions” had been agreed. He said negotiations on how municipal and provincial government revenues would be shared required more work. I would say that we are close to 50%60% already having our understanding of revenue participation,” O`Neill said at Reuters` request. Differences of opinion on landowners` rights and revenue-sharing agreements have been an almost constant feature of the evolution of resources in PNG. A non-binding Memorandum of Understanding (MOU) signed on Friday is basically a government commitment to rule out a gas agreement in early 2019 that would lead to the development of Total-operated Papua LNG. The MoU was signed at the Asia-Pacific Economic Conference (APEC) in Port Moresby, in the presence of Peter O`Neill, Prime Minister of Papua New Guinea, and Patrick Pouyann√©, President and CEO of Total. The proposed gas agreement is expected to be finalized in the first quarter of 2019. Total operates the Onshore Elk and Antelope fields and is alongside ExxonMobil partners (28.3%) the largest shareholder of PRL-15 with a 31.1% stake.

and Oil Search (17.7%), post the State back-in right of 22.5%. The Papua LNG project consists of two MMtpy LNG trains of MMtpy each and is being developed in synergy with existing LNG facilities (operated by ExxonMobil). Total and its partners have agreed to launch the first phase of engineering studies for this project. Signed by the PNG State and the papua LNG project partners, the MoU is an important step in the commitment of all parties to the project,” said Patrick Pouyann√©, Chairman and CEO of Total. “Investing in LNG is a long-term undertaking and our goal is to make the project as competitive as possible. As the world`s second largest private LNG player, we are fully committed to the success of Papua`s LNG project, which enjoys a favourable geographical location close to Asian markets. The government of Papua New Guinea has suspended negotiations with ExxonMobil for a gas deal for the planned development of the P`nyang gas field in the country`s western highlands.