Santos has been active in Papua New Guinea since the 1980s, and, over the years, has been involved in more than 30 different licences in the Papuan Basin, becoming a producer in 1998 through the SE Gobe oil project in the Gulf Province. Acquisition of a 24% interest in PDL-1 in 1998 gave Santos access to a significant part of the giant Hides gas field and resulted in Santos becoming a foundation partner in the PNG LNG project.
PNG LNG is an integrated development that includes gas production and processing facilities that extend from the Hela, Southern Highlands, Western and Gulf provinces to Port Moresby. The facilities are connected by over 700 kilometres of onshore and offshore pipelines and include a gas conditioning plant in Hides and a two-train liquefaction and storage facility near Port Moresby.
LNG production began in April 2014 and since then, PNG LNG has been reliably supplying LNG to four long-term major customers in Asia.
Santos is positioned to grow its presence in PNG through PNG LNG backfill and expansion, including development of the P’nyang field, as well as standalone opportunities. The company’s exploration and appraisal position includes exploration permits in the Hides to P’nyang geological trend and Eastern Carbonate trend, in the Gulf Province.
In December 2021, Santos merged with Oil Search Limited. As a result of the merger, Oil Search’s PNG interests and assets became part of Santos, including operatorship of the Hides Gas-to-Electricity (GTE) Project and all of PNG’s producing oil fields, as well as the company’s interest the Papua LNG project. With each company holding interests in the PNG LNG Project, Santos’ overall position was increased.