Discussions on the project were suspended earlier this year when the government attempted to revise a separate LNG agreement with French energy company Total, to which Exxon is also involved. This agreement was finally approved in early September with minor concessions from Total. “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.” 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. 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. The P`nyang agreement is one of two agreements Exxon and its partners need to advance their $13 billion plan to expand LNG exports. The other agreement, the Papua LNG Pact, was sealed by Total in September. (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.
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. Discussions on the P`nyang gas deal continue despite the current low level of oil prices. The state is a partner in the PNG-LNG project. At the beginning of the state never put in money for the project, but signed the agreement for other partners boating our bills and later from our income from the sale. “Everything is going well, we can expect to sign a P`Nyang gas agreement towards the end of this month,” Kua said. The government of Papua New Guinea has suspended negotiations with ExxonMobil for a gas deal for the planned development of the P`nyang gas field in the country`s western highlands. 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.