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By Staff Reporter : PNG Today

PNG Oil and gas outlook positive

The future outlook for the oil and gas sector is bright, according to the existing developers Oil Search, ExxonMobil, Total and Santos.

They told the second Petroleum and Energy Summit in Port Moresby Monday that they were planning to commercialise three new LNG (liquefied natural gas) trains of Pasca A, P’nyang and the Elk-Antelope developments.

The developers’ announcement comes as Mining and Petroleum Department seeks Cabinet approval on a White Paper to reform gas policies.

The Prime Minister Peter O'Neill assured the hundreds of energy buyers and investors at the summit that current changes in the economy indicated a turnaround and the future of the hydrocarbon industry is very bright.

O’Neill said there was huge potential in the oil and gas sector which, the government wants to translate to real development especially with the upswing in energy prices.

“We believe very strongly that PNG has great potential in offshore waters (and), we are on the very of significant discoveries in the waters of PNG and Australia and our government is encouraging greater participation in this area,” Mr O’Neill said, referring in particular the Gulf of Papua as well as the Bismarck Sea.

Oil Search Limited managing director Peter Botten said PNG was on the cusp of a significant change and major developments in the oil and gas industry.

“PNG has an outstanding future for oil and gas development, there is opportunity to further grow our oil and gas here in a responsible way it brings both government and community along with it,” Mr Botten said.

“We are very much on the cusp of a new development and I don’t believe you have really gone into FEED, and not quite to FYD but I want Andrew (ExxonMobil managing director Barry Andrew) and Philippe (Total managing director Blanchard Philippe) to describe it – it’s a really, really smart capital efficient way of our next phase of LNG development.”

Barry said that the P’nyang South2 well in Western Province represented a further multi-billion dollar investment and extended gas pipeline infrastructure into Western Province that would potentially create more jobs and revenue for the nation.

He said ExxonMobil was continuing to work with Total, as operator of Papua LNG, to support them in the development of the Elk-Antelope fields.

Barry said the joint venture partners were making good progress on alignment on the development concept.

“Subject to partner approvals we expect to commence discussions with the government on the project gas agreement leading up to a decision on FEED later this year,” he said.

“We believe very strongly that PNG has great potential in offshore waters (and), we are on the very of significant discoveries in the waters of PNG and Australia and our government is encouraging greater participation in this area,” O’Neill said, referring in particular the Gulf of Papua as well as the Bismarck Sea.

“We have great confidence in the hydrocarbon potential in the Gulf of Papua. I thank the exploration companies who have undertaken comprehensive seismic activities in the last few years. We will have to think beyond the way that we have been doing business in the past and look forward to the future and we must embrace new technologies that make it easier for us to develop new resources.”

Meanwhile, Petroleum Minister Fabian Pok has warned the State’s business partners that the government will not tolerate those that have been given licences and continue “to warehouse gas”.

“I also want to remind our partners on the issue of the warehousing of gas resources,” he said at the second PNG petroleum and energy summit in Port Moresby.

“I have said this before and will repeat that the government will not tolerate those that have been given licences and continue to warehouse gas.

“There has been too much wasting time and rhetoric from some companies, and it is time the government put its foot down,” Pok said.

“I have instructed my department to do an audit and report back to me, and those found practising this will have their licences reviewed and penalised.”

“Our government led by the Prime Minister Peter O’Neill is adamant in making wholesome changes to the way we have been managing our natural resources, and the direction for this government is to conduct a review of all legislative and constitutional provisions on ownership rights in resource development.”

Pok gave his ministerial statement at the summit which is all about sharing ideas, building relationships and helping to set the future agenda for developing a sustainable energy future in Papua New Guinea.

PNG has shown that it can deliver world class and multi-billion dollar project developments in both the petroleum and mining sectors,” he said.

“It means that now is the time to make sure that PNG’s policy and legislative frameworks are designed so that PNG and its citizens participate more fully and directly in our country’s natural gas industry.

“We are a determined country and we are doing our utmost to ensure there is a win-win atmosphere for all parties in all sectors,” he said.

SOURCE: POST COURIER/PACNEWS

Posted by Staff Reporter : PNG Today on 5:54 PM. Filed under , . You can follow any responses to this entry through the RSS 2.0. Share this Article

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