Oil Search ‘encouraged’ by NEC’s stance

A LEADING oil exploration company is encouraged by Petroleum Minister Kerenga Kua’s statement that the National Executive Council (NEC) has agreed to stand behind the Papua LNG gas agreement signed in April.
Oil Search Ltd managing director Peter Botten said: “We are encouraged by the statement made by Petroleum Minister Kerenga Kua that the NEC has agreed, in principle, to stand behind the Papua LNG gas agreement, which was signed by the PNG government and the Petroleum Retention License (PRL) 15 Joint Venture in April.”
Botten said Oil Search was committed to supporting the operator of the Papua LNG, Total SA and the Government in resolving any final questions on the agreement.
“So that the P’nyang gas agreement can be finalised and the PRL 15 and PNG LNG joint ventures can proceed into the front-end engineering and design (Feed) phase of the integrated three train development in a timely manner,” he said.
Botten said the Papua LNG joint venture was also working collaboratively with the government on finalising the National Content Plan for the Papua LNG.
“This plan is aimed at maximising the involvement of PNG citizens and local businesses in the development and operation of the Papua LNG project,” he said.
Kua said the NEC met last Friday and discussed the result of the review conducted by the State negotiating team and had agreed in principle that the state would stand behind the signed agreement in the interest of the people.
“However, the State has reserved its rights to discuss a shortlist of matters to be discussed with the developers,” he said.
“We believe that what we have discussed and agreed to are favourable and will not affect the general economics and fiscal terms of the Papua LNG gas agreement.”