Vila Times

Exxon discovered oil and gas in Papua New Guinea

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Exxon Mobil Corp. has discovered natural gas and oil in the western province of Papua New Guinea and has begun evaluating the find with its partners.

The Texas oil company drilled an exploration well more than 8,900 feet into the earth and found hydrocarbons in sandstone reservoirs, confirming that the gas-rich field encompassing the Toro and Digimu sandstone reservoirs extends southeast, Business Wire reports.

The discovery added to the company’s “rapidly growing inventory of low cost supply of natural gas” in Papua New Guinea, adding to reserves acquired in Exxon’s purchase of InterOil Corp., as well as its boost in reserves at the Hides gas field and a nearby discovery made in late 2016.

“We are continuing with our active onshore and offshore exploration program in an effort to provide additional resources to expand existing and planned development projects,” said Liam Mallon, president of Exxon Mobil Development Co., in a statement.

Exxon has a 49 percent interest in the block and operates a liquefied natural gas plant in PNG.