An ExxonMobil-operated gas project in Papua New Guinea has agreed a deal to supply LNG to a unit of British oil giant BP (NYSE: BP), said Australia’s Oil Search Ltd., a partner in the development.
The agreement, starting this month, will provide BP with about 450,000 tonnes of LNG annually over an initial three-year period, rising to about 900,000 tonnes for the following two years, Oil Search said in a statement on Friday.
It did not give any value for the deal.
“[The move] takes the total contracted volumes from the project to approximately 7.5 MTPA [million tonnes per annum]”, said Oil Search managing director Peter Botten.
The agreement comes a month after Oil Search announced a similar deal with PetroChina Co. Ltd.
The company also said that, on behalf of the project, ExxonMobil was in negotiations with several other parties over an additional 450,000 tonnes per year of supply.
Earlier this month, Oil Search resumed operations to produce oil at the Agogo production facility, which was knocked out by a major earthquake in Papua New Guinea in February.
2023-09-01 - The field, which began production in July of this year, is averaging production of 1.5 Bcm per year.
2023-08-03 - Eni’s security risk assessment of the exploration assets yielded positive results and the force majeure was lifted.
2023-08-31 - The $222 million ultra-deepwater drillship contract is for the Dhirubhai Deepwater KG1 offshore India.
2023-08-24 - In July, 73% of the gas processed by the unit came from the pre-salt, up from 50% when it first went online, with the remainder of gas coming from the post-salt.
2023-09-14 - The Manatee field is part of the cross-border Loran-Manatee discovery, shared by Trinidad and Venezuela.