The outstanding performance of the PNG LNG Project has established PNG as a reliable producer of high heating value gas that provides buyers with geographic diversification. PNG has substantial undeveloped gas resources, a stable fiscal regime, a supportive Government and world class operators, which, when combined with Oil Search’s almost 90 years of in-country experience, create an ideal environment for LNG expansion. As well as continuing to optimise the performance of the PNG LNG Project, a key objective for Oil Search is to develop a timely, globally competitive LNG expansion underpinned by our substantial discovered, undeveloped gas resources.
Cooperative LNG Expansion
The PRL 15 and PRL 3 Joint Ventures have progressed towards developing the material undeveloped 2C gas resource in the Elk-Antelope and P’nyang fields in PNG. Oil Search believes that the gas resources in these fields, combined with undedicated reserves in the PNG LNG Project Foundation fields, are sufficient to underpin 8 MTPA of additional, globally competitive, LNG capacity. Broad alignment on the preferred downstream development concept for expansion has been reached with Oil Search’s key joint venture partners. This is a significant step forward, paving the way for discussions with the PNG Government on project gas agreements and a decision on entering into Front End Engineering and Design.