P`nyang 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. “Exxon Mobil`s offer has not changed much from last November`s opening offer,” Prime Minister James Marape said in a statement, adding that it was not “essentially subject to a recent LNG agreement with Total.” Last year, the country`s oil minister said the government would push Exxon to “much better” terms for the P`nyang project than with the Total agreement. The proposal for the development of a gas field at P`nyang involves the construction of a third LNG train in the PNG-LNG project at Caution Bay, near Port Moresby, but is considered an integrated autonomous gas project, in accordance with the terms of a gas agreement. According to the government, the new gas agreement for P`nyang will be separated from the terms of the agreements for the initial PNG LNG project and the new Papua LNG project. Kua said the government had the option of postponing the P`nyang project until the new oil and gas laws and the revised tax system are introduced this year. Nevertheless, he said it was more advantageous to negotiate and sign the P`nyang gas agreement under the existing 1998 Oil and Gas Act. An Exxon Mobil spokesman told Reuters news agency that the company was disappointed that no agreement could be reached. (Reuters) – Papua New Guinea will begin talks with Exxon Mobil Corp to try to negotiate better terms for the P`Nyang gas project, oil minister Kerenga Kua said, with an agreement expected by the end of the month if all goes well. “Technical and commercial activities related to the three-train LNG extension project at the LNG-LNG site in Caution slowed in the first half of the year due to the suspension of formal negotiations on the P`nyang gas agreement and the impact of COVID-19 on staff movement,” the company said in its results for the first half of 2020. Discussions on the P`nyang gas deal continue despite the current low level of oil prices.