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ExxonMobil says near deal on potential LNG sales

Reuters - Monday, June 22

* Exxon says near sales deal with 3 major LNG buyers in Asia

* Potential sales to Asian buyers are for a total 4.3 mtpa

* PNG LNG project on track to fully contract proposed output

PERTH, June 22 - ExxonMobil <XOM.N>, operator of a liquefied natural gas project in Papua New Guinea, is nearing agreement on sales with three major buyers in Asia, putting the project on track for a final investment decision later this year.

ExxonMobil said on Monday its subsidiary Esso Highland Ltd, has “reached alignment on commercial terms” with three major LNG customers in Asia for long-term LNG sales totalling about 4.3 million tonnes per annum .

“Exclusive discussions will commence with these customers to finalize binding sales and purchase agreements to establish the project’s foundation customers,” Exxon said in a statement.

“A final investment decision is targeted later this year.”

The potential sales with the unnamed Asian buyers are in addition to a sales agreement announced in April for a volume of 2 mtpa, where the customer is awaiting approval from its government on the key commercial terms, Exxon said.

A sale to the four undisclosed buyers would mean the project was fully contracted for proposed total output of 6.3 mtpa, cementing its frontrunner status among a dozen competing LNG hopefuls in the region.

For a factbox on a list of proposed LNG projects in the Asia-Pacific region, click on [ID:nSYD475128]

Energy firms have said that, despite the recent global financial crisis, interest among Asian buyers to secure long-term LNG supplies has remained firm.

Exxon holds a 41.5 percent stake in the PNG project, while Australian-listed Oil Search Ltd <OSH.AX> has 34 percent and Santos Ltd <STO.AX> owns 17.7 percent. Nippon Oil <5001.T> and PNG landowners own the rest.

Shares in Oil Search were up 2.2 percent to A$5.64 in early trade, while Santos shares rose 0.1 percent to A$14.90 in broader market up 0.6 percent <.AXJO>.

The project, also known as PNG LNG, is estimated to cost between $10-$11 billion and is targeting first LNG delivery in late 2013 or early 2014.

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ExxonMobil flags more LNG sales

The Adelaide Now - Australia, June 22, 2009 10:30am

EXXONMOBIL says it is nearing deals for further sales from its joint venture Papua New Guinea liquefied natural gas project.

Oil and gas producers Oil Search and Santos have hailed as a “key marketing milestone” an announcement by PNG LNG joint venture leader ExxonMobil that they are nearing deals for further sales from their Papua New Guinea liquefied natural gas project.

ExxonMobil said on Monday that the project participants had “reached alignment on the commercial terms” with three major LNG buyers in the Asian region, for approximately 4.3 million tonnes per annum.

This follows an earlier announcement of agreement to commercial terms with another major Asian buyer for two MTA in sales.

Oil Search Managing Director Peter Botten said the announcement was “a major achievement for the PNG LNG Project and underscores the Project’s credibility for delivering gas in the 2013/2014 timeframe.

“It represents a further milestone for the Project, as it builds momentum towards a Final Investment Decision, planned for late 2009,” Mr Botten said.

Santos chief executive officer, David Knox, said the announcement on Monday “provide a strong foundation for a final investment decision in the fourth quarter of 2009”.

A senior ExxonMobil official, Ron Billings, said the project now would begin exclusive discussions with the customers to finalise binding sales and purchase agreements to establish the Project’s foundation customers.

We are pleased that the Project has reached the important milestone of aligning on commercial terms with these major Asian LNG customers,” said Ron Billings, Vice President, LNG, ExxonMobil Gas & Power Marketing Company, a division of Exxon Mobil Corporation.

“This is a key milestone in the Project’s schedule, with delivery of LNG to the market expected to commence in late 2013 or early 2014.”

PNG LNG participants include ExxonMobil (through various affiliates, including Esso Highlands Limited as Operator) with 41.5 per cent, Oil Search (34.0 per cent), Santos (17.7 per cent), Nippon Oil (5.4 per cent), Minerals Resources Development Company (1.2 per cent), and Eda Oil Limited (0.2 per cent).

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PNG gas project attracts Asian customers

The Sidney Morning Herald, June 22, 2009

ExxonMobil have announced they are nearing deals for more sales from their Papua New Guinea liquefied natural gas (LNG) project, in which two major Australian firms also have stakes.

Oil and gas producers Oil Search Ltd and Santos Ltd both hailed the announcement as a “key marketing milestone”.

ExxonMobil said on Monday that they had agreed terms with three major LNG buyers in Asia for approximately 4.3 million tonnes per annum (mta).

This follows an earlier deal with a major Asian buyer for two mta.

Oil Search’s managing director, Peter Botten, said the announcement was “a major achievement for the PNG LNG Project and underscores the Project’s credibility for delivering gas in the 2013/2014 timeframe.

“It represents a further milestone for the project, as it builds momentum towards a final investment decision, planned for late 2009,” Mr Botten said.

Santos chief executive officer, David Knox, said the announcement on Monday “provides a strong foundation for a final investment decision in the fourth quarter of 2009″.

A senior ExxonMobil official, Ron Billings, said the project now would begin discussions with the customers to finalise binding sales agreements.

“We are pleased that the Project has reached the important milestone of aligning on commercial terms with these major Asian LNG customers,” said Exxon’s Ron Billings.

“This is a key milestone in the Project’s schedule, with delivery of LNG to the market expected to commence in late 2013 or early 2014.”

PNG LNG participants include ExxonMobil (through various affiliates), with 41.5 per cent, Oil Search (34.0 per cent), Santos (17.7 per cent), Nippon Oil (5.4 per cent), Minerals Resources Development Company (1.2 per cent), and Eda Oil Limited (0.2 per cent).

© 2009 AAP