Oil Search, Total and Exxon “demobilise” PNG exploration amid Covid-19

21 July 2020 (Last Updated July 21st, 2020 11:07)

Papua New Guinean offshore company Oil Search has announced that technical staff at a proposed liquefied natural gas (LNG) project have been “demobilised” due to the spread of Covid-19 in the country, casting some doubts over the company’s future in Papua New Guinea.

The plan, a joint venture between the Papua New Guinea Government, Oil Search, and industry majors Total and ExxonMobil, was set to go ahead following the completion of discussions in May. Known as the P’nyang Gas Agreement, the project has since been shelved due to the Covid-19 pandemic and its impact on oil and gas prices, and Total and ExxonMobil withdrawing the majority of their technical and commercial staff.

Read more about Oil Search's response to the pandemic here.