Total Targets Asian LNG With Latest Farm-In

摘要

BMI View: Total's move into Papua New Guinea (PNG)'s upstream further reinforces our positive outlook for the country's gas sector. With the French major hoping its latest assets in PNG can support LNG export to growing markets in Asia, it could further consolidate its growing LNG portfolio as its looks to compete with its interna- tional oil company (IOC) peers in the region. Moreover, should Shell successfully reach an agreement with InterOil to develop a long delayed LNG project, PNG's economy would be among the biggest benefciaries. However, we highlight that while the strategic location and lower development costs could give PNG an advantage in LNG, its poor business environment remains a hurdle to the development of its underexplored territory.