Papua New Guinea resumes talks with Exxon on gas agreement

Reuters2021-08-23

Aug 23 (Reuters) - The Papua New Guinea government and U.S. oil giant Exxon Mobil intend to re-engage in negotiations on the P’nyang project, nearly two years after their talks came to a standstill, Oil Search Ltd announced on Monday.

In November 2019 the country's government had flagged a standoff in talks with Exxon Mobil tied to a $13 billion gas expansion, saying the U.S. oil giant was unwilling to negotiate on the country’s terms.

PNG Minister for Petroleum, Kerenga Kua said if all goes well, "we can expect to sign a P'nyang Heads of Agreement around the end of this next month and a Gas Agreement thereafter."

"We look forward to further progress in these negotiations and will support the PRL3 Operator through our 38.51% interest in the joint venture,” said Diego Fettweis, Oil Search’s executive vice president for commercial.

Earlier this month, Oil Search announced its intention to recommend a buyout offer from Santos Ltd, worth A$8.4 billion ($5.99 billion), in a deal that would create a top-20 global oil and gas company.

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