MELBOURNE, Nov. 20 -- Papua New Guinea company Oil Search Ltd., Sydney, has signed a memorandum of understanding (MOU) with the Papua New Guinea government and Japanese entities Itochu Corp. and Mitsubishi Gas Chemical Co. to carry out a feasibility study into development of a petrochemical project in Papua New Guinea.
Under the agreement Oil Search and the two Japanese companies will work together and coordinate with the government to investigate the development of a petrochemical industry and its associated benefits to all concerned based on current economic conditions.
Oil Search's managing director said the companies want to better understand the commercialization options that exist for gas in Papua New Guinea, and that includes further LNG trains, petrochemicals, and other gas-based domestic and export industries.
"This new study will satisfy a core initiative announced last July following the signing of the domestic gas MOU with the Papua New Guinea government," he added.
Oil Search has a 34.1% interest in the ExxonMobil-operated, two-train, 6.3-million-tonne/year PNG LNG project that will source gas from fields in which Oil Search has a stake.
The new MOU covers gas from the company's non-Papua New Guinea LNG gas resources.