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Total to launch engineering studies on Papua LNG project
2018/11/16
Total and its partners have signed a [non-binding] MOU with Papua New Guinea government defining the key terms of the gas agreement for the Total-proposed Papua LNG project.
Total and its partners ExxonMobil and Oil Search have signed a [non-binding] memorandum of understanding (MOU) with Papua New Guinea government defining the key terms of the gas agreement for the Total-proposed Papua LNG project, the French company said in a statement. The MOU “is expected to be finalized by Q1 2019”, which would lead to the development of Papua LNG project.
Total is the operator of the Elk and Antelope onshore fields and it is the largest shareholder in PRL-15 with a 31.1% interest, alongside partners ExxonMobil (28.3%) and Oil Search (17.7%), post the State back-in right of 22.5%.
The Elk-Antelope gas fields are allocated for the Papua LNG project which will encompass two LNG trains of 2.7 MMT/Y each and will be developed in synergy with the existing ExxonMobil-operated PNG LNG facilities, Total said, adding that its partners have agreed to launch the first phase of the engineering studies of this project.
The LNG project, which analysts estimate will cost $13 billion, is crucial to the Pacific island nation’s economy as LNG is its biggest export earner, while demand for the fuel is surging in international energy markets, Reuter reported, citing PNG Prime Minister as saying that “physical terms” had been agreed and “negotiations over how revenue would be shared in the community and provincial governments required more work.”
Disagreements over land-owner rights and revenue-sharing agreements have been an almost constant feature of resource development in PNG.
Total and partners are racing to start exporting from the new trains by 2024, when the LNG market is expected to need new supply to meet rapidly growing demand in Asia. But analysts say that timeline might be hard to meet as a final investment decision may not come until 2020 or 2021.


Source(s) Total, GLNGI Staff, Reuters,