PNG: New management shape to drive huge project - Makeover for PNG owners
Upstream, April 6
The owners of the $2.18 billion PNG Gas Project have formed a new management structure today to assist in the commercialisation of gas from Papua New Guinea.
"The original PNG project team has completed all the technical work necessary and will be restructured from a Chevron-operated project to a management committee representing each of the owners, supported by a secretarial resourced by the owners are required," the owners said.
The management committee, chaired by W F Threlfall, the vice president of ExxonMobil Exploration SE Asia/Russia/Australia, will provide strategic guidance to a dedicated gas marketing group based in Brisbane, Queensland.
"Support for all other aspects of the project will be provided by the owner companies to increase significantly the resources available to deal with the many complex issues being addressed by the project," the companies said.
The landmark project will draw some 6 trillion cubic feet of gas and close to 200 million barrels of liquefied petroleum gas from two main permits in the Southern Highlands, PDL-1 and PDL-2. A co-operative pact signed last year between the two permit groups marries abundant gas reserves in ExxonMobil's Hides gas field (PDL-1) with processing and transportation facilities in Chevron's ageing Kutubu field (PDL-2).
The PNG Gas Project partners are ExxonMobil, Chevron, Oil Search and the PNG government.
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Supermajor set to bump Chevron off - Exxon to rule PNG roost
Upstream, April 5
ExxonMobil is likely to take over the lead role from Chevron in the US$2.2 billion Papua New Guinea-to-Queensland gas project in a meeting tomorrow with its joint venture partners.
The US supermajor would assume operatorship while Sydney-based Oil Search would earn a greater say in the project, the Queensland-based newspaper Courier Mail reported. ExxonMobil joined the venture last year, thereby diluting Chevron's stake to about 8%. ExxonMobil owns about 30% although the the final share split in the upstream portion is still being decided.
The next largest shareholders will probably be Sydney-based Oil Search (26%) and the Papua New Guinea government (23%), according to industry sources.
A Chevron spokesman said the company looked forward to ExxonMobil having a greater role. "Exxon has indicated it wanted more of a role. As for a meeting on Friday, well we have one every two to four weeks and I'm not going to discuss what's going on there. That's internal project stuff," the spokesman said.
The landmark project will draw some 6 trillion cubic feet of gas and close to 200 million barrels of liquefied petroleum gas from two main permits in the Southern Highlands, PDL-1 and PDL-2. A co-operative pact signed last year between the two permit groups marries abundant gas reserves in ExxonMobil's Hides gas field (PDL-1) with processing and transportation facilities in Chevron's ageing Kutubu field (PDL-2).
Last month, ExxonMobil committed itself financially to PNG Gas and is clearly seeking to carve out a larger role for itself.
ExxonMobil's influence is expected to boost the project, but it still has a considerable amount of work to achieve, with a market for the gas in Queensland still to be resolved, Courier Mail reported. Tax arrangements in PNG are also an issue. The Australian government also recently rejected a request from the PNG government for a $300 million loan to finance PNG's role in the project. |
