http://www.pnglng.com/media/pdfs/speeches/speeches_appleton_shenzen.pdf

Very important point from the presentation:

"The Act details a quite specific process by which the Government must identify landowners and then negotiate what is called in the Act a Development Agreement, but which for this Project is called a Benefits Sharing Agreement

Interesting Points from the above Speech

1. Hides Gas Conditioning Plant 960 million cubic feet per day.

2. PNG LNG proposes to commercialize the undeveloped petroleum resources in the Hides, Angore and Juha fields and the associated gas resources in the currently operating oil fields of Kutubu, Agogo, Gobe and Moran in the Southern Highlands and Western provinces of PNG.

3. This project is the biggest and most complex resource development ever contemplated in PNG, and it has the potential to have a profound impact on the nation's future.

4. the largest private sector investment ever considered in the country.

5. The gas will be prepared for compression and transportation by dehydration and condensate removal at a new 960 million cubic feet per day (mcfd) gas conditioning plant at Hides. It will then be transported by a 315 km onshore and 400 km subsea gas pipeline.

6. LNG Plant - 6.3 million tonnes per annum

7. Plant location has good access to deep water

8. ExxonMobil works with National Oil Companies, governments and service companies all over the world, helping to meet the growing global demand for energy. This collaborative approach results in mutually beneficial partnerships.

9. We are the world's largest publicly-traded energy company. We operate facilities or market products on six continents ... in nearly every country ... and we have more than 80,000 employees. The fact is we are the most successful private company in the world.

10. Our proven Capital Project System is the process we use globally to manage all major projects, like the PNG LNG Project. It is consistent, and it is integrated into everything we do.

11. Financing plays a key role in the success of any major project. Financial benefits for our partners go hand-in-hand with ExxonMobil’s successful project execution. We have a history of helping partners to find the best financing terms at the lowest possible cost.

12. Structuring a beneficial agreement is the foundation, but ExxonMobil’s disciplined approach to management consistently reduces risk and lowers costs over the life of the project. We offer the benefits of established processes, support systems and experienced support staff.

13. The Project joint venturers have signed a Marketing Representation Agreement which; commits the JV partners to marketing the Project LNG collectively; Appoints ExxonMobil as the sole marketing representative; and Establishes a marketing committee of JV Partner representatives to oversee key decisions.

14. Our disciplined and consistent approach is reflected in the reliability of our operated facilities.

15. You can’t maintain an efficient LNG plant unless you also have an efficient delivery system to keep the product flowing.

16. In recent years our research scientists and engineers have played a key role in designing and developing a new generation of LNG ships. The average LNG ship used today has storage for about 140 thousand cubic meters of cargo. Through advances in technology, these new ships have been certified to carry up to 260 thousand cubic meters ... nearly twice the size of what’s most commonly used today.

17. PNG LNG plans to have a fleet of dedicated ships in order to control the required efficiency in shipping scheduling, making sure customers receive supplies in a safe and reliable manner from project start-up.

18. The project does have the potential to transform the economy of PNG and benefits from the project may spread throughout the country if the government applies the earnings from its substantial share of the project revenues to social and economic programs.

19. Creating local jobs and training people in technical and professional skills that are needed for existing and future projects and operations.

20. The issue of determining benefits distribution among the landowners is going to be an interesting and likely very visible process. Under PNG law the Crown owns all mineral rights, but the law, and particularly the Oil & Gas Act, recognise the rights of the traditional or customary landowners.

21.The Act details a quite specific process by which the Government must identify landowners and then negotiate what is called in the Act a Development Agreement, but which for this Project is called a Benefits Sharing Agreement The Project is not a formal participant in this process although we are obviously actively engaged. The analogy used in PNG is that the Project gives the Pig to the Government and then the Government and landowners must decide how the pig is carved and distributed.