ExxonMobil Takes Control Of US$2.5 Bln PNG-Queensland Gas Pipeline
Asia Pulse, April 18
BRISBANE, April 18 Asia Pulse - US petroleum giant ExxonMobil has assumed control from fellow project participant and operator Chevron of the $A5 billion ($US2.5 billion) PNG to Queensland gas pipeline.
Under new management arrangements the project will now come under the control of Exxon's Melbourne-based exploration director Doug Schwebel.
A new management committee, representing each of the project's owners, will be chaired by Exxon's vice president of exploration for Asia, Russia and Australia Bill Threlfall.
The committee will provide strategic guidance to a dedicated gas marketing group based in Brisbane.
Support for all other aspects of the project will be provided by the owner companies, significantly increasing the resources available to deal with the complex issues the project is facing.
Owners of the project include ExxonMobil, Chevron and listed Australian groups Oil Search Ltd, Orogen Ltd and Santos Ltd.
The companies each hold various stakes in PNG gas fields and intend to sell gas through the pipeline once complex contract talks are completed and a final decision to proceed is made.
The major stumbling block to the project's final go-ahead has been delays in signing contracts with customers over the volumes of gas to be taken.
Major customers include Queensland's government owned energy corporations Ergon Energy and Energex.
Ergon and Energex signed draft agreements in July last year to take about 170 petajoules of gas a year.
ExxonMobil's move to take control of the project comes after it, along with Santos, joined the project by committing vast quantities of their PNG gas to the project.
Australian pipeline group AGL Ltd and Malaysia's Petronas will build, own and operate the $A1.5 billion ($US750.75 million) pipeline stretching 2,5000 kilometres from Papua New Guinea's gas rish highlands to Gladstone in central Queensland.
First gas is expected in 2005, more than two years behind the original estimate of 2003.
An Exxon spokesman said all of the preliminary technical work had been completed and the focus was now on the marketing of gas.
"It is now at the point where we need to find the markets for the gas before it can go on to the next phase," he said.
"The emphasis is now on using the resources of all of the owner companies in terms of the marketing task." |
