Papua New Guinea Government and ExxonMobile Execute P'nyang The Gas Agreement HOA captures key fiscal, regulatory and licencing terms negotiated over last two months. The Equity HOA provides for the State to acquire at cost 10% additional equity from ExxonMobil in the P’nyang Project. The overall deal reflects a win-win for both sides. In addition to all the legal entitlements, the State’s take is at 63% in this deal compared to 49% in PNG LNG and and 51% in Papua. This is made possible by increase production levy of 3% and the State equity (including the commercial purchase) being 32.5% compared to just 19.6% in the PNG LNG and 22.5% in Papua.
The deal makes P’nyang an investment grade bankable project, meeting the project partners’ investment thresholds and gives it the best chance of going into construction.
The Prime Minister said, “The project timing is sequenced in a way that P’nyang commences as soon as Papua construction is complete. Papua New Guinea Government and ExxonMobile Execute P'nyang Gas Agreement HOAS - Papua New Guinea Today (pngfacts.com)