LNG project will last more than 30 years

 THE PNG LNG project will have a lifespan of more than 30 years, with the possibility of a longer life if additional gas reserves are discovered.

Esso Highlands Ltd managing director Peter Graham said the company’s interest in buying New Guinea Energy’s (NGE) interest in petroleum prospecting license (PPL) 269 in Western for US$40 million (K92.37m) was indicative of ExxonMobil’s long-term commitment to the country.

“It (lifespan) is normally defined by the reserves that are in the ground,” Graham said.

“As we start to produce, we get a better understanding of the reservoir that we’re working from.

“We continue to do exploration. Over the next few years, we, ExxonMobil, expect to drill on average two wells a year. There’s no reason why this project shouldn’t be running 30-plus years.

“Subject to what is found from the explorations, it has the potential to grow from where it is today.”

Graham said EHL was interested in PPL 296 because it was next to the P’nyang prospect, mooted as the next big gas field in PNG.

“It’s adjacent to the P’nyang license, where we already have a discovery,” he said.

“It’s an area that’s on the same trend, geologically. The deal is not yet concluded, but it’s important for us from an exploration perspective.

“It’s a sign of ExxonMobil’s view of Papua New Guinea being a positive environment to invest in, subject to accumulating sufficient gas reserves to be able to expand and leverage the investment we have already made.”