MINISTER for Petroleum, Hon. Jimmy Maladina, has welcomed the announcement by TotalEnergies of major contractual and commercial milestones for the Papua LNG Project, describing the development as a significant step towards Final Investment Decision (FID).
TotalEnergies recently announced that the project has completed its EPC tendering process, reduced estimated project capital expenditure to around US$14 billion, agreed to transfer operatorship to ExxonMobil, finalised amendments to the Gas Agreement with the State, and advanced LNG marketing arrangements to support project financing.
“These are important developments for Papua LNG and for Papua New Guinea. They demonstrate that the project partners and the State remain firmly focused on bringing this nationally important project to FID,” Minister Maladina said.
The Minister welcomed the proposed transfer of operatorship to ExxonMobil, noting the opportunity for greater integration and operational efficiencies between Papua LNG and the existing PNG LNG facilities.
Minister Maladina also welcomed the finalisation of amendments to the Gas Agreement, reflecting the updated project cost structure and economics while preserving the State’s long-term fiscal interests.
“The Government has worked closely with TotalEnergies, ExxonMobil and the other project partners to address the commercial ana regulatory matters necessary to move Papua LNG forward. Our focus now is to complete the remaining processes required to achieve FID.”
The Minister said the Government remains committed to ensuring that Papua LNG delivers lasting benefits through employment, business opportunities, national participation, skills development and benefits for landowners, Gulf Province and Papua New Guinea.
Papua LNG will develop the Elk-Antelope gas fields in Gulf Province and is designed to produce approximately 5.6 million tonnes of LNG per annum, primarily for Asian markets.
“This announcement gives renewed confidence that Papua LNG is moving decisively towards FID. The Government will continue working with all stakeholders to get this project across the line in the national interest,” Minister Maladina concluded.