Exxon: Project cost will reduce

By SHIRLEY MAULUDU
THE cost of the Papua LNG project may come down now that ExxonMobil PNG Ltd, following its acquisition of InterOil, is coming on board, managing director Andrew Barry (pictured) says.
Barry said ExxonMobil would be helping with the synergies associated with the project.
He was asked whether the company’s participation in the Papua LNG project might have an impact on competition in the country’s petroleum sector.
“If you think about the competition and the concerns that an average person might have relative to competition, they are concerned that it is going to impact prices or restrict development. I think that’s what the people’s concerns are,” he said.
“What we say is we’re coming into Papua LNG project. We will be able to provide opportunities.
“I think that our coming here and helping with the synergies associated with the project has the benefits of reducing the cost of the project which will help the project to actually mature and develop.
“We think that with us coming in, the project will be done quicker, cheaper and more effectively and efficiently which ultimately will benefit the government, communities and the country.”
He said Total remained the operator of Papua LNG project.
“Total will be progressing many of the work and we’ll be supporting Total. It’s not like we’ll be taking over the operatorship of Papua LNG project,” he said.
“You’ll still have ExxonMobil operating PNG LNG and Total operating Papua LNG.
“It’s an important distinction to make as such.”