PNG LNG FEED Decision Targeted for Q4

Last week, Oil Search released a company update revealing Q4 2018 as their target date for a decision on FEED entry for the long-awaited PNG LNG expansion.

According to the presentation, Oil Search has been taking part in ongoing meetings for the PNG LNG, PRL 3 and PRL 15 projects to advance concept definitions, engineering, project financing and commercial agreements.

The first phase of seismic acquisition (one of the first steps of exploration) has been identified as an aid in defining prospects in close proximity to the planned infrastructure for Total’s Papua LNG project

At this stage, APEC appears to be a natural platform for an announcement of this magnitude, however Oil Search did not confirm a set date for a decision and accompanying public announcement. 


Proposed downstream alignment ? source: Oil Search Company Update

The background

PNG LNG is poised for a significant US $12 billion expansion that could boost Papua New Guinea’s production of liquefied natural gas by eight million tonnes per year.

The project is likely to take advantage of downstream capabilities and facilities for three new processing trains at the existing PNG LNG plant site:

  • Two supported by gas through Total’s Elk-Antelope project
  • Another through ExxonMobil’s PNG LNG fields and P?nyang

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 Oil Search’s negotiations with ExxonMobil and Total have progressed, however agreements with landowners and smaller partners Santos and JX Nippon are still to come.

Since 2014, the project has been run by ExxonMobil in partnership with Oil Search and PNG Government-owned Kumul Petroleum. With production and processing facilities extending from Hela, Southern Highlands, Western and Gulf provinces down to Port Moresby, it’s hard to overstate the sheer size of this project. 

At the peak of construction, it’s estimated that the PNG LNG project employed over 21,000 people at one time.

Imagine the National Football Stadium in Port Moresby filled to the brim (if you?re not from PNG ? click through for a reference point). Then imagine another 6,000+ people standing outside ? that’s how many people we?re talking about.

Once a FEED decision is reached and announced, it is likely that we will start to see an increase in industry activity and demand for highly specialised engineering professionals.  During this stage of most Oil & Gas projects, corporate teams (for example, HR, IT and Legal teams) are often expanded to facilitate rapid growth in company activity.  

As part of Peopleconnexion PNG’s continuing efforts to keep our candidates and clients up to speed with industry updates, we have created a portal to register Oil & Gas EOIs so we can keep you up to date with information about the industry in Papua New Guinea.

Here is the link to register:

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