Papua New Guinea - Exxon look to revise P'Nyang gas deal

(Reuters) -Papua New Guinea is set to start talks with Exxon Mobil Corp to try to negotiate better terms from the P'Nyang Gas Project, Minister for Petroleum Kerenga Kua said, with an agreement expected by the end of the month if all goes well. 

The push to extract more benefits from the P’Nyang project is part of a wider effort by PNG’s new government to reap more rewards from the country’s mineral and petroleum resources to lift the country out of poverty.

"All things going well we can expect to sign a P'Nyang Gas agreement around the end of this month," Kua said.

The P'Nyang project will help feed an expansion of Exxon's PNG LNG (liquefied natural gas) plant, in which Australia's Oil Search and Santos Ltd are also stakeholders.

Talks over the project were put on hold earlier this year, when the government sought to revise a separate LNG agreement it has with French energy firm Total, in which Exxon is also involved. That deal was finally endorsed in early September, with minor concessions from Total.

Kua had earlier told Reuters the state would seek "far better" terms for P'Nyang than those with Total.

Exxon's Australian office did not immediately respond to a Reuters email, out of its business hours.

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