The Papua LNG joint venture participants have entered into a Memorandum of Understanding, with the Independent State of Papua New Guinea for the development of the Papua LNG Project as announced by Oil Search.
In early 2018 on the preferred downstream concept for the next phase of LNG development in PNG, the agreement follows the Papua LNG and PNG LNG joint venture parties reaching broad alignment. This comprises the construction of three 2.7 MTPA LNG trains all located on the existing PNG LNG Project plant site producing approximately 8 MTPA. From the existing PNG LNG fields and the P’nyang field while one train is underpinned by gas two trains will be supplied with gas from the Elk-Antelope fields.
Key terms and conditions for the framework to be included within the Gas Agreement which the Papua LNG MoU provides, with a Gas Agreement expected to be signed no later than 31 March 2019 including tax rates and DMO (Domestic Market Obligation) as well as a timeline for the finalization of negotiations. The MoU for the Papua LNG Project marks a significant milestone, Oil Search’s Managing Director Peter Botten commented on MOU.
The integration of the Papua LNG and P’nyang developments, the commercial agreements including those related to site and facility access that support material progress has been made with the PNG LNG project.
The three-train development concept are well underway for the Pre-FEED downstream studies. Work taking place includes compressor driver selection, the brownfield tie-ins, LNG loading and shipping, storage and loading, condensate treatment and execution planning. The State Negotiating Team and the P’nyang joint venture are having discussions and are well advanced.
The stock of Oil Search Limited (ASX: OSH) traded lower at $7.510 and has seen a performance change of 5.88% over the period of 12 months. The market capitalization of the stock is $11.52 billion as at November 16, 2018. The annual dividend yield of the stock stands at 1.3%.
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