Papua New Guinea LNG partners start work early

ExxonMobil Corp.’s Papua New Guinea LNG project has moved forward another step with the partners agreeing to begin early work activities.

June 15, 2009

2 min read

Rick Wilkinson
OGJ Correspondent

MELBOURNE, June 15 -- ExxonMobil Corp.’s Papua New Guinea LNG project has moved forward another step with the partners agreeing to begin early work activities.

The activities include a range of infrastructure programs like the upgrade and repair of roads, construction of camps, wharf upgrades, early site preparation in the highlands, establishment of training facilities and ordering long lead time items.

Development of this type of infrastructure will contribute towards a swift beginning to the main construction work in early 2010 following final investment decision for the project expected later this year.

The early work will comprise an accelerated investment of about $600 million during the next 12 months prior to the final investment decision and is seen as a major vote of confidence and commitment in the project as a whole.

The early works agreement follows the recent signing of the umbrella benefits sharing agreement as well as progress made on marketing the LNG.

This month a major construction contract for upstream civil infrastructure was awarded to the Clough Curtain engineering joint venture. ExxonMobil also signed an agreement with KBR and WorleyParsons EOS joint venture for services such as training, in-country support and integrated project team services for construction and project management of the development.

PNG LNG comprises a 2-train, 6.3 million tonne/year LNG plant near Port Moresby with gas sourced from several fields in the central highlands region.

PNG LNG parters include ExxonMobil 41.6%, Oil Search Ltd. 34.1%, Santos Ltd. 17.7% and Nippon Oil 5.4%.