US energy giant ExxonMobil and its partners in the PNG LNG joint venture have taken a final investment decision on the Angore development project.
Australia’s Santos, which has an 11.5 percent stake in PNG LNG, said the project partners took the decision during the third quarter, while associated activity had started late July.
This development represents the next tranche of gas backfill to maintain plateau production at the 6.9 mtpa LNG export plant in Caution Bay, Santos said in its quarterly report.
The firm said its share of capital expenditure would reach about $135 million with first gas expected in 2024.
This means the total price tag of the project would reach around $1 billion.
The LNG plant gets gas from seven fields, including the Hides, Angore, and Juha gas fields owned by PNG LNG.
During the third quarter, the LNG plant operated at an annualized rate of about 8.5 mtpa, Santos said.
In total, PNG LNG delivered 29 LNG cargoes to customers during the quarter, same as in the comparable quarter last year and two more compared to the prior quarter.
ExxonMobil has a 33.2 percent operating interest in PNG LNG, while Oil Search owns a 29 percent interest. Other partners include Kumul Petroleum, JX Nippon Oil & Gas Exploration, and MRDC.
To remind, Papua New Guinea-focused Oil Search and Santos have recently entered into a definitive merger deal that would create an LNG player worth about A$21 billion ($15.5 billion).
Combined, they will have a 42.5 percent stake in PNG LNG.
