Stanley Gas Agreement

The dispute was finally settled under new conditions that provide for the construction of two separate LNG trains with a minimum processing capacity of 3.8 MMtpy. InterOil also had to involve an experienced operator for the operation of the upstream installations. The company found this operator in December 2013 by signing a contract with the French oil and gas group Total. The agreement breathed a life into the project and allowed it to continue. “The minister asked the licensees to participate in a formal signing ceremony of the Stanley Ga agreement on April 17. The announcement marked the end of 18 months of intensive ministerial negotiations to approve the project. Located 40 km north of Kiunga, the area that includes the project and its gas fields is home to 138 clans, 131 of whom reportedly signed the agreement on May 31 (only one landowner jailed for murder would hold out). The project began in 2007, when a 3,000 km pipeline to customers in Australia was deemed unfeasible. ExxonMobil then turned to the concept of LNG exports.

In early 2008, a joint company agreement was signed by the project partners, and in June of the same year the project entered the frontal engineering design (FEED) phase. The agreement imposes the essential rights and obligations of the State and licensees for the Stanley Project, including the project`s tax terms and local content obligations. Of course, it is not easy for a company operating in a complex international environment and optimism about PNG`s recent achievements has been somewhat tempered by statements of intent by the country`s oil minister, PDL 10, PL 10 and to cancel Horizon`s Stanley Gas deal and its joint venture partners. “Under the terms of the gas agreement, the Minister will grant Horizon Oil and its co-licenses Stanley PDL 10 and PL 10 within two weeks of its execution. Just two years ago, the future of Gulf LNG was bleak. InterOil nearly lost the project due to a dispute with the Papua New Guinea government over the project`s export capacity. The initial project contract plan of 2009 called for InterOil to develop a multi-train LNG terminal with a processing capacity of 7.6 MMtpy, with the possibility of expanding the capacity to 10.6 MMtpy. . .