K1.5 billion Exxon deal for PNG gas project

 THE £450 million (K1.55 billion) contract from ExxonMobil is for the PNG LNG project, not the Gulf LNG project, Wood Group says.

The Aberdeen based firm told The National last week that the recent contract it was awarded was to do maintenance work on ExxonMobil’s facilities once it goes into production next year.

Under the contract, Wood Group PSN (WGPSN) will provide brownfield engineering and procurement support to ExxonMobil’s operations in PNG, including construction and maintenance services to both the Hides gas conditioning plant in the highlands, and the LNG plant northwest of Port Moresby. 

“The contract is for the PNG LNG project only.

“Because it is an enabling agreement, there is no definite spending associated with this award …  however, we expect the total value to be in the range of approximately £300 million (K1 billion) to £450 million (K1.55 billion).

“WGPSN plans to recruit up to 300 maintenance and construction personnel, drawing on Papua New Guinea and regional labour. 

 “It is too early to say, but WGPSN is committed to working safely towards nationalisation, as we have done in other countries, such as Chad, where 93% of our workforce are African nationals and developing skills in-country will be a key area of focus for us.”

The contract will take effect on Thursday, Aug 1.