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Papua LNG expansion gas agreement has Government support

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LNG Industry,

High Arctic Energy Services Inc. has released a statement saying it is pleased with the Government of Papua New Guinea’s (PNG) recent announcement validating the Papua LNG Gas Agreement.

The PNG Cabinet (National Executive Council) has completed its review of the Papua LNG Gas Agreement and has validated the agreement as executed on 9 April 2019. The review was announced on 25 July 2019 by the Petroleum Minister following the change of Prime Minister on May 29, 2019 and new ministerial appointments that followed in June.

The validation by the Petroleum Minister includes new good faith concessions offered by the operator for the Papua LNG joint venture. According to High Arctic Energy Services, the concessions include preparing a detailed National Content Plan, third party pipeline access, and possible state participation in pipeline ownership as well as LNG transport tankers.

High Arctic claims that it has consciously developed its PNG operations to benefit and promote national content.

Mike Maguire, President – International, said: “We are pleased to advise that our major subcontracts are with PNG companies and that more than 70% of our PNG workforce is now comprised of PNG citizens including several managerial and supervisory roles. We have been operating a Well Control School and mentoring program in PNG for nearly two years which has been instrumental in developing the skills of our local technical workforce, opening customer opportunities underpinned by a deep understanding of drilling needed in this frontier and challenging drilling landscape. We are well positioned to contribute to local content plans for petroleum activity in PNG.”

With the PNG Government having cleared the Papua LNG Gas Project to proceed, High Arctic anticipates an announcement soon on the PNG LNG expansion project announced by joint venture partners in 2018 to coincide and cohabitate with the Papua LNG processing facilities at the site of the existing two train PNG LNG gas plant.

J. Cameron Bailey, High Arctic CEO, said: “High Arctic’s extensive PNG experience, strong local content, technical and logistics capability combined with Tier-1 drilling and well site services assets places us in an excellent position to contribute to both the Papua LNG Project and PNG LNG expansion as well as the growing backlog of PNG onshore exploration licence commitments which have been deferred over the past four years.”

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