PNG LNG gets approval

Partners of the PNG LNG Project, today announced that the development of the project will proceed.
Peter Graham, managing director of Esso Highlands, said the project has received
approval by the co-venturers, pending completion of sales and purchase agreements with
LNG buyers and finalization of financing arrangements with lenders, expected to be
concluded by early 2010.
With this decision to proceed, the Papua New Guinea government and landowner
nominees have joined the project as equity participants.
"We are pleased to achieve the important milestone of securing the approval of the coventurers
to move ahead with our project," said Graham said during a ceremony at the
National Parliament House. "Pending completion of these sales and financing
arrangements, significant project activity will commence in 2010.” The project expects to
release information shortly regarding the approval of engineering, procurement and
construction contracts.
Prime Minister Sir Michael Somare presided over the ceremony, attended by Papua New
Guinea government ministers and governors. Somare said, “ExxonMobil and our other
private sector development partners have shown significant confidence in our nation.
Cooperation between the public and private sectors will create value for the Papua New
Guinea society as a whole and grow our economy in the future.”
The project co-venturers will continue to work with the Independent State of Papua New
Guinea and lenders to secure all the necessary environmental and social program
approvals which focus on specific management plans associated with the implementation
of facilities.
The PNG LNG Project is an integrated development that includes gas production and
processing facilities, onshore and offshore pipelines and liquefaction facilities with the
capacity of 6.6 million tons per year. Participating interests include affiliates of Exxon
Mobil Corporation (including Esso Highlands Limited as operator, 33.2 percent), Oil
Search Limited (29.0 percent), Independent Public Business Corporation (PNG
Government, 16.6 percent), Santos (13.5 percent), Nippon Oil (4.7 percent), Mineral
Resources Development Company (PNG landowners, 2.8 percent) and Petromin PNG
Holdings Limited (0.2 percent).
Media Contact: Miles Shaw
Phone: + (675) 323-2133 Email: miles.j.shaw@exxonmobil.com