Papua New Guinea Sends Team to Renegotiate Papua LNG Deal

Source Reuters
Company TotalExxonMobilOil Search Limited 
Tags Oil & Gas Trading, Issues & Setbacks, Government Policy, LNG & Gas Storage/Processing
Date August 15, 2019

(Reuters) Papua New Guinea has sent a team to Singapore to renegotiate its Papua LNG agreement with France's Total, the nation’s petroleum minister said in a statement on Thursday, warning the talks could end “disastrously” for the gas project.

The strong language from minister Kerenga Kua marked an about-turn from a statement 10 days earlier, when he announced the new government would stand by the gas deal agreed by the previous government with Total in April, with some minor changes.

“The negotiations could work out well or even disastrously,” he said.

Papua LNG, a project that includes Total, ExxonMobil and Australia’s Oil Search Ltd, is part of a $13 billion plan set to double the country’s exports of liquefied natural gas (LNG).

The Papua LNG gas agreement, key to the project going ahead, came under review when Prime Minister James Marape came to power in May promising to reap more benefits for the impoverished nation from its huge oil, gas and mineral resources.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd