Oil Search announced that it has signed a Memorandum of Understanding (MOU) with the Papua New Guinea (PNG) Government. The MOU provides a framework for the PNG Government, its various agencies and Oil Search to work together to commercialize the substantial discovered PNG gas resource that is not currently dedicated to the PNG LNG Project.
"We are delighted to have executed this MOU with the PNG Government," said Oil Search Managing Director Peter Botten. "While the Exxon-Mobil operated PNG LNG Project is our top priority, only approximately 60% of our gas resource in PNG is committed to PNG LNG. We are seeking to commercialize the remaining 40%, comprising approximately two tcf of gas plus associated liquids located in a number of fields, through the development of further LNG trains and other gas-based domestic and export industries."
Under the MOU, Oil Search will work with the PNG Government and other State entities to study gas development hubs/corridors and will review various options to aggregate commercial parcels of gas and develop gas infrastructure. It will also progress discussions with local gas suppliers and potential users of gas for both domestic gas-based industries and export, with Oil Search playing a key coordination and leadership role.
The MOU provides for a number of core initiatives to be pursued. These include:
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