PNG says fails to agree with Exxon Mobil on P’Nyang gas project

FILE PHOTO: A view of the Exxon Mobil refinery in Baytown, Texas September 15, 2008. A big chunk of U.S. energy production shuttered by Hurricane Ike could recover quickly amid early indications the storm caused only minor to moderate damage to platforms and coastal refineries. REUTERS/Jessica Rinaldi/File Photo

(Reuters) – Papua New Guinea has been unable to reach a mutually beneficial deal with Exxon Mobil regarding the P’Nyang gas project, despite offering significant concessions, the prime minister said on Friday.

PNG’s new government is pushing to extract more benefits from the P’Nyang project as part of a wider effort to reap more rewards from mineral and petroleum resources to lift the country out of poverty.

The new delay to the P’Nyang agreement will make it harder for Exxon and partners Total SA, Oil Search and Santos Ltd to reach a final investment decision in 2020 on their plans to double LNG exports from the country.

Reporting by Nikhil Subba in Bengaluru; editing by Jason Neely

Leave a Reply