Papua New Guinea has one of the largest and most resource-rich energy sectors in the Pacific region, with abundant reserves of natural gas, crude oil, hydropower, geothermal energy, solar and biomass resources. The country's energy industry is dominated by upstream oil and natural gas production, particularly liquefied natural gas (LNG) exports, which have become a cornerstone of the national economy and a major source of export earnings and government revenue. While the petroleum sector remains the primary focus of investment, renewable energy development is expanding to improve domestic electricity access, reduce reliance on imported diesel and support long-term decarbonisation. The government has set ambitious targets to increase electrification and significantly raise the share of renewable energy in the national power mix.

Papua New Guinea's upstream oil and gas industry is concentrated in the onshore Papuan Basin and offshore Gulf of Papua. Major producing fields include Hides, Angore, Juha, Kutubu, Gobe, Moran and Agogo, which supply natural gas and crude oil to domestic and export markets. The country's flagship energy development is the PNG LNG Project, operated by ExxonMobil, which began production in 2014 and exports LNG primarily to customers in Asia. Additional developments, including the Papua LNG Project led by TotalEnergies and the proposed P'nyang gas project, are expected to expand LNG production capacity significantly over the coming decade. Exploration activity continues across both onshore and offshore licence areas, with companies including ExxonMobil, TotalEnergies, Santos, PETRONAS, Twinza, Heritage Oil, Kina Petroleum and CNOOC evaluating new oil and gas resources. 

The renewable energy sector remains underdeveloped relative to the country's substantial resource potential. Hydropower represents the largest renewable energy source and supplies most of Papua New Guinea's grid-connected electricity through facilities such as the Ramu hydropower system. The government is pursuing additional hydropower developments alongside investments in solar photovoltaic, biomass, geothermal and small-scale hydro projects to improve electricity access in rural communities, where a significant proportion of the population remains without reliable power. International development partners, including the World Bank, Asian Development Bank, Australia, Japan and New Zealand, are supporting renewable energy deployment through the Papua New Guinea Electrification Partnership, which aims to achieve near-universal electricity access by 2030.

Papua New Guinea is also promoting lower-carbon energy development within its petroleum sector. Major LNG projects are incorporating measures such as carbon dioxide reinjection, improved energy efficiency and electrified processing facilities to reduce greenhouse gas emissions. At the same time, the country is exploring opportunities for carbon capture and storage, sustainable forestry-based carbon markets and the integration of renewable energy into mining and LNG operations. These initiatives reflect Papua New Guinea's strategy of leveraging its extensive natural gas resources to drive economic growth while progressively expanding renewable energy and reducing the carbon intensity of its energy system.

Oil and gas company operations

CNOOC International

CNOOC International's operations in Papua New Guinea are focused on oil and gas exploration rather than commercial production. The company entered the country through its acquisition of a 70% interest in PNG Energy Limited, giving it exploration rights over three Petroleum Prospect Licences (PPLs): one onshore licence (PPL 378) and two offshore deepwater licences (PPL 374 and PPL 375) in the Gulf of Papua.

The offshore licences cover a combined area of approximately 25,000 km² in the deepwater Gulf of Papua, where CNOOC is evaluating the petroleum potential through geological, geophysical and seismic studies. These frontier exploration blocks are considered prospective because of their proximity to proven hydrocarbon systems associated with Papua New Guinea's established petroleum basins. The onshore PPL 378 licence is operated by GINI Energy Limited, a subsidiary of PNG Energy Limited, which holds a 100% working interest in that block.

CNOOC's exploration programme is designed to identify commercially viable oil and natural gas accumulations that could support future field development. Activities include seismic data acquisition and interpretation, basin analysis, prospect generation and preparation for potential exploration drilling. As of the latest publicly available information, none of the three licences has progressed to commercial production, and the company has not announced any significant hydrocarbon discoveries in Papua New Guinea.

Papua New Guinea remains an important frontier exploration area within CNOOC International's Asia-Pacific portfolio, complementing its producing assets elsewhere in the region. The company's strategy is to build a long-term upstream presence by exploring underexplored basins with the potential to support future oil and gas developments if commercially recoverable resources are discovered.

ExxonMobil

ExxonMobil's oil and gas operations in Papua New Guinea are centred on the PNG LNG Project, the country's largest integrated energy development and one of the most significant LNG projects in the Asia-Pacific region. Through ExxonMobil PNG Limited, the company operates the project on behalf of its joint venture partners, including Santos, Kumul Petroleum Holdings Limited, Mineral Resources Development Company (MRDC) and Eneos Xplora.

The PNG LNG Project involves the production, processing and export of natural gas from fields located in the Hela and Southern Highlands provinces. Gas is extracted from production wells, processed at the Hides Gas Conditioning Plant, and transported through approximately 700 kilometres of onshore and offshore pipelines to the LNG facilities at Caution Bay near Port Moresby, where it is liquefied and exported to international markets, primarily in Asia. Commercial operations began in 2014, and the project has become a major contributor to Papua New Guinea's energy exports and government revenues.

ExxonMobil holds a major equity interest in PNG LNG and is responsible for the project's operational management, including upstream production activities, gas processing, pipeline operations and LNG plant operations. The project was developed as an integrated gas-to-LNG venture, combining upstream gas fields with processing infrastructure and export facilities. Since the start of production, PNG LNG has delivered LNG cargoes to long-term customers across Asian markets and has maintained production capacity of more than 8 million tonnes of LNG per year.

Beyond PNG LNG, ExxonMobil is involved in the proposed Papua LNG Project as a venture partner alongside TotalEnergies, Santos and other partners. The project aims to commercialise gas resources from the Elk-Antelope fields in Gulf Province and develop additional LNG production capacity using facilities integrated with the existing PNG LNG infrastructure. ExxonMobil has been designated the downstream delegated operator for construction and operation of certain LNG facilities associated with the project.

ExxonMobil is also involved in the development of the P’nyang gas resource in Western Province through its subsidiary interests. The proposed P’nyang LNG development would utilise additional gas reserves to support future LNG expansion in Papua New Guinea, subject to commercial agreements and a final investment decision by project partners. The company has also conducted exploration activities, including seismic surveys in the Eastern Fold Belt region, to evaluate additional hydrocarbon potential.

Heritage Oil

Heritage Oil's oil and gas operations in Papua New Guinea are focused on exploration activities through its subsidiary Heritage PNG 437 Limited. The company holds an interest in Petroleum Prospecting Licence PPL 437, a highly prospective exploration licence located within the Fly Platform area of western Papua New Guinea. The licence is situated within a proven hydrocarbon fairway with existing gas and condensate discoveries in the broader region, providing potential opportunities for future upstream development.

The PPL 437 licence covers an area with identified exploration potential, including one drill-ready prospect and several additional leads identified through geological and geophysical studies. Heritage's exploration strategy is focused on evaluating these prospects, advancing subsurface understanding and determining whether commercially recoverable oil or gas resources exist. The company has highlighted the potential for gas and condensate development, including possible integration with regional infrastructure and future LNG-related projects such as Papua LNG.

JX Nippon

JX Nippon Oil & Gas Exploration, now operating as part of ENEOS Xplora, has been active in Papua New Guinea's upstream petroleum sector since 1990 and is a long-standing participant in the country's LNG industry. The company does not operate fields directly but holds its interests through its wholly owned subsidiary, Nippon Papua New Guinea LNG LLC, which owns a 4.7% participating interest in the PNG LNG Project operated by ExxonMobil PNG Limited.

The PNG LNG Project is an integrated upstream and LNG export development that produces natural gas from the Hides, Angore, Juha and associated gas fields in the Southern Highlands, Hela, Western, Gulf and Central provinces. Gas is processed at the Hides Gas Conditioning Plant and transported through more than 700 kilometres of pipelines to the liquefaction and export terminal near Port Moresby. Commercial LNG production began in 2014, with LNG supplied under long-term contracts to customers across Asia.

JX Nippon's role is that of a non-operating equity partner, sharing in the production, processing and export of LNG while supporting the project's long-term development. In November 2024, the project achieved an important milestone with the commencement of production from the Angore gas field, which is expected to provide approximately 1 trillion cubic feet of natural gas resources and help sustain LNG production from the PNG LNG Project.

In addition to its participation in PNG LNG, JX Nippon is a partner in the proposed Papua LNG Project, which is operated by TotalEnergies and aims to commercialise gas from the Elk and Antelope fields in Gulf Province. The company is working alongside TotalEnergies, ExxonMobil, Santos and Kumul Petroleum to progress engineering studies and project development ahead of a final investment decision.

Through these investments, JX Nippon's activities in Papua New Guinea are focused on upstream natural gas production, LNG development and long-term participation in the country's expanding gas export industry rather than independent operation of oil or gas fields.

Kina Petroleum

Kina’s principal asset base is located onshore Papua New Guinea and includes interests in Petroleum Retention Licences (PRLs) and Petroleum Prospecting Licences (PPLs) covering large areas of the Papuan Basin. The company has held participating interests in PRL 21 and PRL 38, as well as multiple exploration licences, with its acreage portfolio covering nearly 30,000 km² of prospective oil and gas territory.

The company’s most advanced project has been PRL 21 in Western Province, which contains the Elevala, Ketu and Tingu gas-condensate discoveries. These discoveries were appraised through drilling activities and identified a significant wet gas resource containing natural gas and condensate. Kina has worked with joint venture partners to evaluate development options for the resource, including potential commercialisation routes linked to Papua New Guinea’s expanding LNG sector.

Kina has also maintained exploration interests in the Papuan Basin through licences such as PPL 435, PPL 436 and PPL 437. These areas are considered prospective for gas and condensate due to their location near proven discoveries and existing petroleum developments. In PPL 437, Kina holds a majority interest and has focused on geological evaluation, seismic interpretation and assessment of potential drilling targets. In PPL 436, the company holds a 100% interest in a large onshore exploration block with identified oil and gas potential, including historical oil seep evidence and multiple prospective reservoir targets.

Kina Petroleum does not currently operate a producing oil or gas field in Papua New Guinea. Its activities remain focused on exploration, appraisal and development planning, with the objective of converting discovered resources and prospective acreage into future commercial production. The company’s long-term approach is based on partnering with experienced international energy companies, advancing technical studies and pursuing development opportunities within Papua New Guinea’s upstream petroleum sector.

Kumul Petroleum

PNG LNG Project
Kumul Petroleum (KPHL) has a 19.397% interest in PNG LNG Project, after acquisition of 2.6% of additional equity from Santos in November 2024. This multi-field project takes gas from a number of licences and includes a gas conditioning plant at Hides, export of condensates through co-mingling with oil from the Santos operated Kutubu oil project, 700 kilometres of onshore and offshore pipelines and a two train LNG plant at Caution Bay outside Port Moresby. The plant has a nameplate capacity of 6.9 mtpa but has consistently exceeded this level in recent years with outputs of more than 8 mtpa.

KPHL’s interest in the project is determined by the amount of gas contributed by petroleum development licences. KPHL has a 20.5% interest in Hides (PDLs 1&7), Angore (PDL 8) and Juha (PDL 9). KPHL partners in the PNG LNG Project are ExxonMobil (33.2%), JX Nippon (4.7%), MRDC (2.8%) and Santos (39.9%).

After agreement between the PNG LNG Project joint venture partners, KPHL has from early 2024 been ‘equity marketing’ its share of LNG and condensate volumes not covered by long term sales agreements, through its Singapore office. The first LNG shipment was to PetroChina.

Petroleum Appraisal
KPHL is 100% owner and operator of four petroleum retention licences – PRLs 47, 48, 49 and 50, over the Pandora, Kimu, Barikewa and Uramu petroleum fields.

These licence awards and direct involvement of Kumul Petroleum as operator ensures that these important discovered petroleum reserves are not ‘warehoused’, and potentially remain undeveloped for many years. Kumul Petroleum will ensure that, where feasible, these petroleum discoveries will be progressed towards commercialisation and subsequently provide benefits for landowners and other stakeholders.

In September 2024, KPHL commenced a 79 kilometre seismic programme of over the Barikewa and Kimu fields in PRLs 48 and 49, the work being contracted to national company OilMin. The purpose of this seismic work is to gather additional information on the petroleum resources already discovered in these two licences, to hopefully increase the confirmed volumes of oil and gas they contain, as well as improve further exploration targets. Once KPHL has a better idea of the oil and gas volumes in these licences, the economic feasibility of monetising this resource can be assessed and a development path selected.

In October 2024, KPHL awarded a pre-FEED contract to Shanghai Wison to carry out a pre-FEED feasibility study on an approximately 1.5 mtpa Floating LNG facility, possibly to be sited near the Pandora field, as part of investigations into reserve certification and commercialising stranded gas fields. The pre-FEED study is a necessary step to understand the full scope, cost, schedule, risk and the full economic value before making a decision on moving to FEED and FID. The pre-FEED study is expected to take 8-12 months, leading to entry of FEED thereafter, and FID sometime in 2026 or 2027.

Larus Energy

Larus Energy's oil and gas operations in Papua New Guinea are focused exclusively on offshore petroleum exploration in the Torres Sub-Basin of the Gulf of Papua. The Australian independent exploration company holds a 100% interest in Petroleum Prospecting Licences (PPL) 579 and PPL 695 through its wholly owned subsidiaries, Larus Energy (PNG) Limited and Larus Energy (PNG No.2) Limited. These licences cover a substantial acreage position in an emerging offshore petroleum province that the company considers highly prospective for conventional oil and gas discoveries.

PPL 579 is the company's flagship asset and contains the Nanamarope prospect, a drill-ready offshore oil target located approximately 80 km southeast of Port Moresby. Larus has undertaken extensive exploration work, including regional geological studies, proprietary 2D seismic surveys and the acquisition of a 1,865 km² 3D seismic survey completed in 2023. The technical programme has identified multiple exploration plays, including large four-way dip closures, stacked Miocene reservoir intervals, fault traps and carbonate build-ups, supported by evidence of an active petroleum system and offshore hydrocarbon indicators.

PPL 695, awarded in 2024, adjoins PPL 579 and extends Larus' exploration position across the same regional petroleum system. The licence is at an earlier stage of evaluation but benefits from geological knowledge and seismic data generated from work on PPL 579. Larus considers the block to have significant follow-on exploration potential, with success at the Nanamarope prospect expected to de-risk additional prospects and leads across the wider basin.

Larus does not currently produce oil or natural gas in Papua New Guinea. Its activities remain focused on seismic interpretation, prospect maturation, farm-out discussions and preparations for an exploration drilling campaign. The company intends to test the Nanamarope prospect following nearby deepwater exploration activities in adjacent acreage and is seeking industry partners to support drilling and future appraisal.

Marubeni

Marubeni's oil and gas operations in Papua New Guinea are centred on its participation in the PNG LNG Project, one of the country's largest integrated natural gas developments. Rather than acting as the field operator, Marubeni holds its interest through Merlin Petroleum Company, in which it acquired a 21% ownership stake in 2011. Merlin, through its subsidiary Nippon Papua New Guinea LNG LLC, owns a 4.68% participating interest in the PNG LNG Project, which is operated by ExxonMobil PNG Limited.

The PNG LNG Project is an integrated upstream and midstream development that produces natural gas from several fields in the Hela, Southern Highlands, Western, Gulf and Central provinces. The gas is gathered and processed before being transported through more than 700 kilometres of pipelines to a liquefaction and export terminal near Port Moresby. Commercial LNG production commenced in 2014, and the project supplies long-term customers across Asia, including Japan, China and Taiwan.

Marubeni's role focuses on its equity participation in upstream gas production and LNG exports rather than direct field operations. Through its investment, the company shares in the production, processing and export of liquefied natural gas while integrating these volumes into its global LNG trading and marketing business. Papua New Guinea remains one of Marubeni's key LNG investment locations alongside projects in Peru and Equatorial Guinea.

Marubeni does not operate oil or gas fields independently in Papua New Guinea. Instead, its strategy is to maintain stable participation in the long-life PNG LNG Project while leveraging its global expertise in LNG marketing and supply to strengthen its international natural gas value chain.

P3 Global Energy

P3 Global Energy has been associated with exploration interests in Papua New Guinea through its subsidiary and partnership structures, including participation in licences targeting prospective onshore areas. The company's activities have focused on assessing petroleum potential, advancing subsurface understanding and evaluating opportunities for future resource development. These activities are aligned with Papua New Guinea's broader strategy of attracting international investment into its upstream sector, particularly in gas resources that could support future LNG developments.

The company does not currently operate a producing oil or gas field in Papua New Guinea. Its role remains centred on exploration and early-stage resource evaluation, including technical studies and licence management. Any future development would depend on the confirmation of commercially recoverable hydrocarbons, completion of appraisal work, regulatory approvals and the establishment of an economically viable development plan.

PETRONAS

PETRONAS' oil and gas operations in Papua New Guinea are focused on natural gas exploration and development, with the company expanding its upstream presence through strategic participation in offshore exploration and the proposed Papua LNG development. PETRONAS operates in the country through its subsidiary, Petronas Energy PNG Sdn. Bhd., and is pursuing exploration opportunities alongside international partners in the highly prospective Papuan Basin.

A key component of PETRONAS' portfolio is its participation in Petroleum Prospecting Licence (PPL) 576, an offshore deepwater exploration block in the Gulf of Papua. In 2024, PETRONAS acquired a 50% participating interest in PPL 576 from TotalEnergies, while TotalEnergies retained the remaining 50% interest and continued as operator. The acquisition marked PETRONAS' entry into Papua New Guinea's upstream petroleum sector and strengthened its position in one of the country's most prospective frontier exploration areas.

Within PPL 576, PETRONAS and TotalEnergies are jointly advancing the Mailu-1 exploration well, which is expected to be Papua New Guinea's first deepwater offshore exploration well. The programme includes seismic interpretation, geological evaluation and exploration drilling to assess the commercial potential of deepwater hydrocarbon resources that could support future LNG developments.

PETRONAS is also a partner in the proposed Papua LNG Project through its interest in the upstream exploration portfolio associated with the project. Papua LNG is designed to commercialise gas from the Elk and Antelope fields by transporting production to expanded liquefaction facilities at Caution Bay near Port Moresby, where it will integrate with existing PNG LNG infrastructure. Although the project has not yet reached a final investment decision, PETRONAS is supporting engineering studies and exploration activities aimed at progressing the development.

Santos

Santos is one of the largest oil and gas companies operating in Papua New Guinea and has been active in the country since the 1980s. The company became a producer in 1998 through the SE Gobe oil project and later became a foundation partner in the PNG LNG project after acquiring an interest in the Hides gas field. Following its merger with Oil Search in 2021, Santos significantly expanded its assets and ownership interests in Papua New Guinea.

Santos' operations include the exploration, development, production, and transportation of oil and natural gas. Its major assets are linked to the PNG LNG project, an integrated development that produces natural gas from fields in Hela, Southern Highlands, Western, and Gulf provinces. The gas is processed at the Hides Gas Conditioning Plant and transported through more than 700 kilometres of pipelines to the liquefied natural gas (LNG) export facility near Port Moresby, where it is liquefied and shipped to customers in Asia. LNG production began in 2014 and remains one of Papua New Guinea's most important export industries.

In addition to its gas interests, Santos operates several producing oil fields, including Kutubu, Moran, Gobe Main, and Agogo. The company continues to invest in expanding production through projects such as the Agogo tie-in, which will connect new gas resources to the existing PNG LNG infrastructure and increase gas supply for both export and domestic markets.

TotalEnergies

TotalEnergies' oil and gas operations in Papua New Guinea are centred on the development of the Papua LNG Project, one of the country's largest proposed liquefied natural gas developments. The company has operated in Papua New Guinea since 2012 and serves as the operator of Petroleum Retention Licence (PRL) 15, which contains the Elk and Antelope gas fields in Gulf Province. In addition to PRL 15, TotalEnergies holds interests in exploration licences including PPL 576 and PPL 589 and is a partner in PPL 339, maintaining an active exploration portfolio both onshore and offshore.

The Papua LNG Project is designed to commercialise the Elk and Antelope gas discoveries through an integrated upstream and downstream development. Natural gas produced from the fields will be transported by pipeline to the existing LNG export facilities at Caution Bay near Port Moresby, where new electric liquefaction trains will be integrated with the existing PNG LNG infrastructure operated by ExxonMobil. The project incorporates carbon reduction measures, including reinjection of naturally occurring carbon dioxide into underground reservoirs and the use of electrically powered LNG trains to reduce greenhouse gas emissions.

Beyond Papua LNG, TotalEnergies continues to expand its exploration activities in Papua New Guinea. The company, together with its partner Petronas, is progressing the Mailu-1 exploration well in deepwater Block PPL 576, which is expected to be Papua New Guinea's first deepwater exploration well. This programme is intended to evaluate additional offshore hydrocarbon resources that could support future LNG developments.

Twinza

Twinza's oil and gas operations in Papua New Guinea are centred on the Pasca A gas-condensate field, an offshore development located in the Gulf of Papua. The company is the operator and principal owner of the project through Petroleum Prospecting Licence (PPL) 328 and the associated Application for a Petroleum Development Licence (APDL 14). Pasca A is a liquids-rich gas-condensate accumulation discovered in 1968 that Twinza acquired in 2011 with the objective of advancing it to commercial production.

Since acquiring the asset, Twinza has undertaken extensive technical evaluation, including the reprocessing of seismic data, geological interpretation and the drilling of the Pasca A4 appraisal well in 2018. These activities confirmed a substantially larger recoverable resource than previously recognised, with the latest independent assessment estimating approximately 90 million barrels of recoverable condensate and LPG together with around 464 billion cubic feet of recoverable natural gas.

The Pasca A project is designed as Papua New Guinea's first offshore petroleum development. Phase I will involve offshore production of condensate and liquefied petroleum gas (LPG) while reinjecting dry gas into the reservoir. A planned second phase would commercialise the remaining gas through a floating LNG development while continuing condensate and LPG production. The project incorporates carbon management initiatives, including evaluation of carbon dioxide sequestration within the reservoir, with the aim of reducing the project's overall carbon footprint.

KeyFacts Energy: Country Profile