Total and its partners ExxonMobil and Papua New Guinea-based Oil Search signed a gas agreement with the Independent State of Papua New Guinea (PNG) defining the fiscal framework for the Papua LNG Project, Total announced on Tuesday.
According to the company's statement, the project has a capacity of 5.4 million tons per annum (Mtpa), consisting of two LNG trains with 2.7 Mtpa of capacity each to unlock over 1 billion barrels of oil equivalent of natural gas resources.
"The gas production will be operated by Total and the LNG plant will be developed in synergy with ExxonMobil-operated PNG LNG project through an expansion of the existing plant in Caution Bay," it said.
According to the press release, the parties signed a Memorandum of Understanding in November 2018, and the pre-Front-End Engineering Design (FEED) studies and the environmental baseline survey have since been completed.
Tuesday's agreement allows the partners to enter the FEED phase of study that will lead to the Final Investment Decision in 2020.
Patrick Pouyanne, chairman and CEO of Total, said the project would further strengthen the company’s position in the Pacific basin and ensure future LNG portfolio growth.
Total operates the Elk and Antelope onshore fields in Papua New Guinea and is the largest shareholder of the PRL-15 permit with a 31.1% interest, alongside partners ExxonMobil with 28.3% and Oil Search at 17.7%, post the state back-in right of 22.5%.
By Hale Turkes