ExxonMobil Inks Sales Agreement for PNG Gas

Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation, as operator of the Papua New Guinea Gas Project, reports that the project participants have signed a Gas Sales Agreement with AGL.

The Gas Sales Agreement replaces the conditional indicative terms agreement announced on 5 July 2005 and covers the sale of around 1500 PJ of gas over 20 years from PNG Gas Project start-up.

"The PNG Gas Project is pleased to see the Gas Sales Agreement finalized with AGL, one of Australia's largest energy companies", said Mr. Rob Franklin, Vice President, New Business Development, ExxonMobil Gas and Power Marketing. "Concluding this agreement represents an important step towards a project sanction decision, which is targeted in 2006."

"The Project's FEED program and related activities are continuing to progress. These include the finalization and optimization of preliminary facility design, and the regulatory, commercial and financing activities," said Mr. Peter Graham, Project Manager for the PNG Gas Project.

In addition to the FEED program for the PNG component of the Project, APC (a consortium led by AGL and Petronas) is undertaking the FEED program for the Australian component of the pipeline.

The PNG Gas Project participants are ExxonMobil (39.4% - Esso Highlands Limited as project operator), Oil Search (54.2%), MRDC (3% - a PNG company representing landowner interests) and Nippon Oil Exploration Limited (3.4%).