The Asia Miner

JUL-SEP 2018

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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the asia miner • volume 15 • issue 3 20 REGIONAL FOCUS: PNG Following a temporary shutdown of operaঞons a[er a severe earthquake that ravaged Papua New Guinea on 26 February 2018, Exxon Mobil has announced that producঞon of liquefied natural gas (LNG) has safely resumed at the PNG LNG project, with LNG exports expected to resume soon a[er. One train is currently operaঞng at the LNG plant near Port Moresby. The plant's second train is expected to restart as producঞon is increased over ঞme. During the period that producঞon was shut-in, ExxonMobil completed unrelated maintenance scheduled for later in the year to allow for more efficient operaঞons in the months ahead. "Resuming LNG producঞon ahead of our projected eight-week ঞmeframe is a significant achievement for ExxonMobil, our joint-venture partners and our customers," said Neil W. Duffin, president of ExxonMobil Producঞon Company. "We will conঞnue to support According to local media reports, Exxon Mobil has shut down its operaঞons on 19 June 2018 a[er landowners burnt heavy machinery on PDL 8 site in a show of frustraঞon over alleged non-payment of the Business Development Grant (BDG). The landowners, reported to be from Angore PDL 8 and Hides PDL 1 to 7, are seeking to recoup K35 million (approximately AU$14,500,000), which is held in a trust and is not being released. Local media sources have reported that an excavator as well as a drilling machine were burnt, with secঞons of the road leading to Hides Gas were blocked, limiঞng police access. As quoted in Pacific Mining Watch, Exxon Mobil released a statement saying that the company was conঞnuing to monitor ongoing tension in the Highlands. "We are invesঞgaঞng reports of vandalism relaঞng to the Angore pipeline construcঞon project. Host government security forces are in the area and also invesঞgaঞng. Our staff are all safe. "Producঞon at the Hides Gas Condiঞoning Plant is conঞnuing normally. ExxonMobil PNG is commi•ed to maintaining a posiঞve relaঞonship with landowners, the government and the wider community." ExxonMobil has had a presence in Papua New Guinea since the 1920s and currently has a workforce of 2,600 in the country, 80 percent of whom are Papua New Guineans. The company operates the PNG LNG project, an integrated development that includes natural gas producঞon and processing faciliঞes, onshore and offshore pipelines, and liquefacঞon faciliঞes. Producঞon and processing faciliঞes are located in the Southern Highlands, Hela, Western, Gulf and Central provinces of Papua New Guinea. The company also has interests in oil producঞon and fuels markeঞng. Exxon Mobil shuts down operations in Hela region Exxon Mobil resumes LNG operations in PNG those communiঞes impacted by the earthquake as we work toward fully restoring our operaঞons. We hope our contribuঞons and assistance will provide comfort to those in need." ExxonMobil is supporঞng mulঞple local and internaঞonal relief agencies involved in the humanitarian response to the earthquake. In addiঞon to the company's previously announced US$1 million contribuঞon for humanitarian relief, ExxonMobil crews have donated and delivered more than 37 tonnes of food, 14 tonnes of drinking water, 600 tarpaulins used as emergency shelters, 1,000 solar lights for households, 20 larger solar lighঞng units for insঞtuঞons, as well as other essenঞal supplies including water purificaঞon tablets, cooking aids and hygiene kits. The company is also assisঞng with the restoraঞon of health care faciliঞes and community food gardens and is providing resources to help the government address the significant task of restoring roads in the Highlands region. "While a lot of work remains to be done, we are confident that with the support of all our partners and stakeholders, we can help our friends and neighbours recover from this tragic natural disaster," said Andrew Barry, managing director of ExxonMobil PNG.

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