Oil Search Ltd is happy to see the progress of the US$12 billion (K41.38 billion) Papua LNG project.
According to Oil Search managing director Dr Keiran Wulff, “We are pleased to see further progress achieved on the Papua LNG. This milestone highlights the commitment from the Government towards Papua LNG and is a significant step in de-risking the project. It also demonstrates increasing alignment between the Government and the joint venture partners. We look forward to progressing the Papua LNG and announcing further milestones consistent with our strategic review announced last November.”
Total, the operator of the project signed the agreement - together with ExxonMobil and Oil Search - signed an agreement with the government early this week. This is seen as a final step under the Papua LNG gas agreement to proceed with the project fiscal stability.
Total managing director, meanwhile, Jean-Marc Noiray said that they welcome the “whole stabilisation of the project”.
“The Feed (front end engineering design) itself will last between 15 and 18 months, from the moment we reach the final investment decision,” he said. “And from final investment decision to first gas, we have about four years of construction. It’s a long journey before we get to the first gas, and the first revenues for the developers and the country.”
