Prime Minister Hon. James Marape has welcomed ExxonMobil’s formal assumption of operatorship of the Papua LNG Project, saying the development strengthens investor confidence, paves the way for the subsequent development of P’nyang LNG and supports the Government’s vision for another 20 years of investment and growth in Papua New Guinea’s petroleum industry.
Prime Minister Marape was responding to an announcement today by ExxonMobil PNG Antelope Limited (EMPNGA), confirming that it had formally assumed operatorship of Papua LNG following an agreement reached in September with project co-venturers TotalEnergies, Santos and ENEOS Xplora.
The Prime Minister thanked TotalEnergies for its leadership and support in advancing Papua LNG and acknowledged all joint venture partners for their continued commitment to Papua New Guinea.
“I thank TotalEnergies for its tremendous support and contribution to Papua LNG, and I congratulate ExxonMobil on formally assuming operatorship of this important national project,” Prime Minister Marape said.
“I also thank Santos, ENEOS Xplora and all our joint venture partners for their continued confidence in Papua New Guinea.
“ExxonMobil brings not only extensive global experience but also a proven record here in Papua New Guinea. It successfully led and delivered the PNG LNG Project and understands our local operating environment, our people and our Government’s policies.
“Importantly, ExxonMobil understands my Government’s determination to secure greater benefits for Papua New Guinea from the development of our natural resources.”
Prime Minister Marape said ExxonMobil’s leadership of Papua LNG was particularly significant because of its existing commitment to the P’nyang LNG Project.
“With ExxonMobil now leading Papua LNG, the company has assured my Government that it will follow through with the development of P’nyang LNG, for which we have already signed agreements,” he said.
“This announcement strengthens the pathway for P’nyang LNG to follow Papua LNG, providing an important sequence of major gas developments for our country.
“Together, Papua LNG and P’nyang represent approximately 11 trillion cubic feet of gas resources, with the potential to sustain around 10 years of construction and progressive development into production.
“This will create opportunities for sustained investment, employment, local business participation and economic growth.”
Prime Minister Marape said the Government had negotiated stronger national participation in both projects, including an opportunity to increase Papua New Guinean equity in Papua LNG from 22.5 per cent to 25 per cent, and 32.5 per cent equity participation in P’nyang LNG.
“My Government has worked hard to secure greater national participation in these projects because Papua New Guinea must receive a fairer share of the wealth generated from its resources,” he said.
“Our policy is to secure more than 55 per cent of the overall economic benefits from properly negotiated resource projects, including benefits flowing to the State, landowners, provincial governments and our people.”
The Prime Minister said the Government would now pursue negotiations on the Muruk and Wildebeest gas resources to sustain the growth of the petroleum sector beyond Papua LNG and P’nyang.
“We will now move into negotiations on Muruk and Wildebeest to build a strong pipeline of gas developments that can sustain and grow Papua New Guinea’s LNG industry over the next 20 years,” he said.
“Our intention is to properly sequence these projects so that investment, construction, production and economic benefits continue well into the future.”
Prime Minister Marape said Papua New Guinea had already demonstrated its reliability as an international petroleum producer, having exported oil since 1990 and LNG since 2014.
“We have proven that Papua New Guinea is a secure and dependable oil and gas-producing nation,” he said.
“We have strong bilateral relationships with our energy markets in Asia, extensive natural gas resources and a proven record of successfully delivering major petroleum projects.
“Our vast forests are also an important national and global environmental asset, serving as natural carbon sinks that absorb and store carbon dioxide from the atmosphere.
“This means that oil and gas companies operating in Papua New Guinea have our forests as offset to their carbon footprints by projects undertaken by Papua New Guinea.
“As we develop major gas projects such as Papua LNG and P’nyang LNG, my Government is committed to protecting and sustainably managing our forests while creating opportunities for petroleum companies to invest in credible, internationally recognised carbon-offset initiatives within Papua New Guinea.
“Papua New Guinea offers international energy investors a unique opportunity to participate in major petroleum developments while also supporting forest conservation, climate action and sustainable economic opportunities for our people.”
Prime Minister Marape reaffirmed the Government’s support for ExxonMobil and its investment partners, including TotalEnergies, Santos and ENEOS Xplora, as well as Papua New Guinean stakeholders Kumul Petroleum Holdings Limited and Mineral Resources Development Company.
He said the Government would continue working with investors to advance Papua LNG towards a final investment decision later this year while maintaining its focus on increased national participation and long-term economic returns.
“Our Government will support ExxonMobil and its partners in progressing Papua LNG, P’nyang and future development opportunities involving Muruk and Wildebeest,” Prime Minister Marape said.
“With properly negotiated agreements, stronger national participation and our policy objective of securing more than 55 per cent of overall economic benefits for Papua New Guinea, these resources have the potential to significantly grow our economy from 2027 to 2047.
“This is about creating jobs, supporting our local businesses, increasing government revenue, developing infrastructure and ensuring that our people benefit from the resources of their country.
“I congratulate ExxonMobil once again on assuming operatorship of Papua LNG and look forward to working with all partners to bring this important project to a final investment decision and into construction.”