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Deal delay exposes PNG LNG expansion to risk of rising cost

If project partners do not finalise a deal with Papua New Guinea’s government within days, the country’s sole export project cannot move into the next engineering phase before contractor bids expire. This may drive up the project cost in light of tightening capacity in the upstream oil and gas industry, according to Oil Search

Project partner Oil Search warns that the planned $13bn PNG LNG expansion may blow its original cost estimate if negotiations with the Papua New Guinea government drag on beyond September

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