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Papua New Guinea

In Papua New Guinea we produce oil in various fields in the Highlands Area. Production commenced in the PNG LNG project in April 2014, representing our third LNG project after the Tiga project in Malaysia and the Tangguh project in Indonesia. We are continuing to work towards stable long-term LNG production and revenues.

PNG Oil Fields

We have been involved in oil exploration and development projects, including the Kutubu and Moran fields, since 1990. In 2008 we increased our oil field interests through acquisition of interests owned by AGL.

Kutubu, Moran and Other Fields

Company Holding the Acreage Merlin Petroleum Company
Shareholders (Shareholding Percentages) Japan Papua New Guinea Petroleum Company 40.7%
Nippon Oil Exploration (PNG) Pty Ltd 38.9%
Marubeni Corporation 20.4%
Interest 8.3%-73.5%
Partners ◎Oil Search
ExxonMobil
Santos
Kumul Petroleum
MRDC
Southern Highlands Petroleum Co Ltd
Net Production 6,700BOE/D

Note: ◎ operator

SE Gobe

Company Holding the Acreage Southern Highlands Petroleum Co Ltd
Shareholders (Shareholding Percentages) JX Nippon Oil & Gas Exploration Corporation 80.0%
INPEX Corporation 10.0%
Japan Petroleum Exploration Co Ltd 10.0%
Interest 18.8%
Partners ◎Oil Search
ExxonMobil
Santos
Kumul Petroleum
MRDC
Merlin Petroleum Company
Net Production 1,400BOE/D

Note: ◎ operator

Oil Production in Highland Areas

Oil Production in Highland Areas

Many of Papua New Guinea's oil fields contain medium- to small-scale reserves and are located in the mountainous and jungle areas of the highlands. While this makes much of the exploration and development work difficult, we have also identified several promising structures in these areas. We are currently carrying out exploration and development activities to increase crude oil production in the territory.

Project History

Kutubu, Moran and Other Fields

2008 December Acquired oil field interests from AGL
2002 September Started production at Moran oil field
1998 March Started production at Gobe oil field
1992 June Started production at Kutubu oil field
1990 July Acquired interests in various onshore blocks through purchase of shares (100%) of Merlin Petroleum Company

SE Gobe

1998 April Started production at SE Gobe oil field
1996 December PDL3 granted
1990 October Acquired PPL56

PNG LNG Project

Our Papua New Guinea LNG project is commercializing natural gas in the Hides, Angore and Juha fields, as well as associated gas from the oil fields of Kutubu, Moran and Gobe. Gas is transported from upstream facilities via a 300-kilometer onshore pipeline and a 400-kilometer offshore pipeline to an LNG plant near Port Moresby. Four long-term sales and purchase agreements have been made with electric and gas utilities in Japan and other buyers in China and Taiwan for the gas.

Company Holding the Acreage Nippon Papua New Guinea LNG LLC
Shareholders (Shareholding Percentages) Merlin Petroleum Company 100.0%
Interest 4.7%
Partners ◎ExxonMobil
Oil Search
Santos
Kumul Petroleum
MRDC
Net Production 9,300BOE/D

Note: ◎ operator

Project History

2014 April Started LNG production at PNG LNG project
2009 December Final Investment Decision for PNG LNG Project
2008 March Signed joint venture agreement for PNG LNG Project

Exploration Licenses

We are conducting exploration activities in PPL219 and 260 through Nippon Oil Exploration (Niugini) Pty Ltd, established in January 2009.

Papua New Guinea Map

PPL219, 260

Company Holding the Acreage Nippon Oil Exploration (Niugini) Pty Ltd
Shareholders (Shareholding Percentages) JX Nippon Oil & Gas Exploration Corporation 50.01%
JOGMEC 49.99%
(voting interest)
Interest 20.0%
Partners ◎Oil Search
ExxonMobil

Note: ◎ operator

Project History

PPL219, 260 (Onshore)

2011 January Observed oil through drilling of Mananda-5 exploration well
2009 July Acquired PPL260
2009 January Acquired PPL219