Talks on development of P’nyang gas ongoing, says developer

OIL Search Ltd is still having ongoing dialogue with the Government on the P’nyang gas agreement, according to the company.
According to its capital and operating expenditure reductions and balance sheet update released yesterday, this was required for the Papua LNG (liquefied natural gas), PNG LNG and P’nyang joint ventures to progress into Feed (front-end engineering design) for the proposed three-train integrated LNG expansion in PNG.
“At present, we have assumed that activities on LNG expansion are minimal,” the company said in a statement.
“If agreement on P’nyang terms is reached and the joint ventures move into the Feed phase in 2020, it is anticipated that spend on the projects would be modest over the balance of the year.”
It also noted that ExxonMobil, as operator of the PNG LNG project, had advised that development activities on the Angore field in Hela would be suspended.
“Much of the planned exploration activity in PNG, including the Gobe Footwall well and seismic acquisition in the highlands, has already taken place or is underway,” it said.
“However, all further activities, including other seismic acquisition programmes, have been deferred.
“In Alaska, operations on Mitquq and Stirrup, the two wells drilled in the 2019/20 winter season, will be completed.
“Testing of the wells, which both discovered oil, is currently underway.”