TOTALENERGIES and Petronas have committed at least US$200 million (about K800 million) towards offshore exploration activities in Central.
This was according to Prime Minister James Marape when commending TotalEnergies and its partner Petronas for their continued confidence in Papua New Guinea, following the commencement of a major offshore oil and gas exploration campaign near Kupiano in Central.
Marape said the recent arrival of the drilling vessel Viking and the start of offshore drilling operations demonstrated that PNG remained an attractive destination for global energy investment.
“The presence of the Viking offshore near Kupiano is a strong signal of confidence in Papua New Guinea’s resource potential,” he said.
“I commend TotalEnergies and Petronas for continuing to invest in our country, not only through the development of existing projects but also through exploration that could unlock the next generation of oil and gas resources.
“Exploration is the foundation of our resource sector.
“Without exploration there can be no new discoveries, no new projects, no new jobs and no future revenue streams for our people.”
Marape noted that while attention remained focused on major developments such as Papua LNG and the P’nyang gas project, continued exploration was essential to sustaining long-term growth in the petroleum sector.
“Our resource industry must continue to grow beyond the projects we know today,” he said.
“Companies that invest in exploration are investing in Papua New Guinea’s future and helping to create opportunities for generations to come.”
Marape said the offshore drilling programme also highlighted the importance of maintaining a stable and competitive investment environment that encourages companies to commit capital to high-risk exploration activities.
“Deep-water exploration requires substantial investment, advanced technology and confidence in the future of our country,” he said.
“We welcome this commitment and look forward to the results of the programme.”
Marape said the National Government would continue working closely with industry partners to ensure that resource development delivered benefits for PNG while encouraging further exploration and investment across the country.
Earlier this week, he spoke about the P’nyang Gas Project in Western is an estimated resource base of 4.6 trillion cubic feet of natural gas.
He said the government had secured better benefits for the country through its negotiations on the project, which includes State equity, taxes, royalties, development levies, and other revenue streams.
The P’nyang gas field lies within Petroleum Retention License (PRL) 3 and was about 130 kilometres north-west of Hides (PNG LNG) in Hela.
The project is operated by Esso PNG PNG P’nyang Limited, a subsidiary of ExxonMobil, as it has 49 per cent interest, including Santos and affiliated partners 38.5 per cent, and ENEOS Holdings (formerly JX Nippon Oil and Gas Exploration Corporation).
Meanwhile, the National Petroleum Authority has started, in Central yesterday, its awareness on the Papua LNG project development forum, says Petroleum Minister Jimmy Maladina.
Maladina said: “The development forum aims to reach agreement on key matters requiring consensus among participants, including State equity entitlements and project benefits.”
