New P’nyang assessment boosts ExxonMobil’s PNG LNG expansion plans

ExxonMobil said the size of the natural gas resource at the P’nyang field in Papua New Guinea is 84 percent higher than previously assessed in 2012.

Following a new independent recertification study by Netherland Sewell and Associates and the January completion of the P’nyang South-2 well, located in the Western Province of Papua New Guinea, the resource estimates rose to 4.36 trillion cubic feet of gas.

ExxonMobil said the results underpin the three-train expansion concept for the PNG LNG plant near Port Moresby, with one new train dedicated to gas from the P’nyang and PNG LNG fields and two trains dedicated to gas associated with the Papua LNG project.

“We are working closely with our joint venture partners and the government to progress the P’nyang field development proposal and secure the licenses needed to develop this world-class resource,” Liam Mallon, president of ExxonMobil Development Company.

The development concept, which would add approximately 8 million tons of LNG annually, would double the capacity of the existing LNG plant operated by ExxonMobil.

“This investment would extend our gas pipeline infrastructure into the country’s Western Province,” Mallon said.

The P’nyang field is located within petroleum retention license 3, which covers 105,000 acres. ExxonMobil units operate the license with a 49 percent interest in the block. Units of Oil Search have a 38.5 percent interest and JX Nippon has 12.5 percent interest.

Papua LNG is seeking to commercialize the Elk-Antelope fields located in petroleum retention license 15 in the Gulf Province of Papua New Guinea. An ExxonMobil unit holds 37.1 percent interest, and units of the operator Total and Oil Search have 40.1 percent and 22.8 percent interest, respectively.