Papua New Guinea's state-owned company Petromin said it has signed an agreement with China National Offshore Oil Corporation (CNOOC) on co-operating in Liquid Nuigini Gas' planned liquefied natural gas project.
Petromin said the heads of agreement also included gas reserves owner InterOil, but an InterOil spokesman said InterOil was not involved in the agreement; rather it was a direct arrangement between Petromin ands CNOOC.
Petromin said the HoA was signed last Wednesday in Beijing in the presence of Chinese Premier Wen Jiabao and PNG's Prime Minister Sir Michael Somare.
The agreement would provide for CNOOC to discuss the terms on which it could provide a carry for Petromin in respect of the financing of the state’s equity in the LNG project, added Petromin.
Petromin's managing director Joshua Kalinoe said the parties had committed to quickly agreeing the commercial terms for the potential financing and to entering into binding arrangements as soon as possible.
Kalinoe said: “For Petromin and the people of Papua New Guinea, this is a major project where the benefits will flow throughout the national economy. Petromin, as the national petroleum and mining company will hold equity in the gas field and the LNG plant for the benefit of all the people of Papua New Guinea”..
The LNG project, in which InterOil is a co-venturer, seeks to export 5 million tonnes per annum of LNG using feedstock gas from InterOil's Elk-Antelope field.