Photo: Illustration purposes only (Image courtesy of Oil Search)

Oil Search: progress made on Papua LNG development

The Papua New Guinea-focused oil and gas producer and PNG LNG stakeholder, Oil Search said that progress has been made on the Papua LNG project. 

Following the gas agreement signed with the government in April, the Papua LNG partners commenced the contractor selection and engineering contracting process for the upstream development.

During the previous months, pre-FEED work continued on the integrated downstream facilities, Oil Search said.

Key areas of focus included finalizing the design basis, progressing permitting and regulatory approval strategies and moving towards completing the National Content Plan.

In addition, pre-FEED work took place on the AGX project, operated by Oil Search. The development concept was selected and recommended to the PNG LNG operator for approval by the joint venture, while basic engineering progressed in preparation for FEED award.

At P’nyang in PRL 3, early project definition studies continued, focused on the gas conditioning plant.

As part of handover activities, the new government leadership team has indicated its desire to review the Papua LNG gas agreement.

Discussions regarding a gas agreement for the development of the P’nyang gas field in PRL 3 commenced early in the second quarter and are expected to resume on completion of the review of the Papua LNG gas agreement.

The Papua LNG gas agreement, which was signed by all joint venture parties as well as the government, was a key prerequisite for entering the FEED phase of the Papua LNG project while signing a gas agreement for the P’nyang field is a requirement for launching the FEED phase of the proposed three-train LNG downstream development.