PNG LNG partners sign interest redetermination pact
Papua New Guinea-focused Oil Search has reached a commercial agreement with its joint venture partners in the PNG LNG project regarding the redetermination of participating interests, it said on September 30.
The parties have agreed that the current redetermination process, initiated in December 2020, will be discontinued and that all future redeterminations, provided for under the PNG LNG Coordinated Development and Operating Agreement, will be cancelled and that no adjustment will be made to the participating interests in the PNG LNG project.
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As part of that agreement, Oil Search will be entitled to a carried interest of $176mn from certain non-PNG state joint venture partners, targeted over 2022 and 2024 in respect of certain agreed PNG LNG capital expenditures. Post 2024, this carry may be reduced or increased once the results of future drilling activities are assessed, Oil Search said.
Currently, the PNG LNG project participants include ExxonMobil (33.2%), Oil Search (29%), Kumul Petroleum (16.8%), Santos (13.5%), JX Nippon (4.7%), and MRDC (2.8%).