Oil Search has signed a Memorandum of Understanding (MOU) with the PNG Government, ITOCHU Corporation (ITOCHU) and Mitsubishi Gas Chemical Company Inc (MGC). Under the MOU, the parties have undertaken to update a study on the feasibility of a petrochemical project (methanol/DME) in PNG.
Oil Search’s Managing Director, Peter Botten, said:
“We are pleased to have executed this MOU with the PNG Government, ITOCHU Corporation and Mitsubishi Gas Chemical. We wish to understand better the commercialisation options that exist for gas in PNG including further LNG trains, petrochemicals and other gas-based domestic and export industries. This study update will fulfil one core initiatives announced in July 2008 following the signing of the Domestic Gas MOU with the PNG Government.”
Under the MOU, Oil Search, ITOCHU Corporation and Mitsubishi Gas Chemical will work together and co-ordinate with the PNG Government to investigate all aspects of the development of a petrochemical industry and the associated benefits to the parties and PNG based on current economic conditions.
Oil Search continues to work with the PNG government on developing other initiatives under the Domestic Gas MOU.