As per the terms of the MoU, the two companies will together finance, build and operate a condensate processing facility and a pipeline in the Western Province of Papua New Guinea (PNG).
The processing facility will be constructed near Eaglewood’s Ubuntu condensate gas discovery to process the produced gas from the discovery, and from the Elevala and Ketu fields.
The new pipeline will be used to supply processed gas to the town of Drimdenasuk.
Eaglewood Energy CEO Brad Hurtubise said, "Since we discovered the Ubuntu field in 2011 we have been working towards the earliest possible commercialisation of the field, and this MOU is a significant step towards achieving this goal and kick-starting oil and gas production in the Western Province of Papua new Guinea."
The partners are planning to build the facility and the pipeline with a capacity that can handle any future expansions including additional gas condensate discovered on Eaglewood’s PPL 259.
The MoU is subject to regulatory approvals, license grant for the facility and pipeline, and other ownership, financing, and off-take terms between the partners.
