16 Feb 2012

Establishment of Shell office in Moresby reflects major interest in PNG resources

10:38 am on 16 February 2012

The oil and gas company Shell is setting up an office in Port Moresby six months after signing a strategic alliance with Papua New Guinea's state oil company, Petromin.

Shell's deal with Petromin includes a joint study of major basins in PNG with the potential to contain big oil and gas deposits.

The Wall Street Journal quotes Petromin's Managing Director Joshua Kalinoe as saying the increased presence of Shell will further facilitate close cooperation for future opportunities in PNG.

He says that together with Petromin, Shell will help PNG realise the full potential of its energy resources.

According to a BP study, PNG had 15.6 trillion cubic feet of proven reserves of natural gas at the end of 2010, a figure described as a conservative estimate.

Shell's move comes as several other companies look to bring in partners on major projects in Papua New Guinea.