Exxon to restart PNG LNG work after land dispute resolved

PERTH, March 29 Thu Mar 29, 2012 3:46am EDT

PERTH, March 29 (Reuters) - U.S. oil giant Exxon Mobil intends to resume work at its $15.7 billion liquefied natural gas (LNG) project in Papua New Guinea after a dispute with residents over land was resolved, the company said on Thursday.

"Community leaders in the Hides area have come to a resolution with the government to allow work in Hides to resume. We have begun to mobilise our workforce to recommence work," Exxon spokeswoman Rebecca Arnold said.

Esso Highlands, the Exxon subsidiary which operates the LNG development, had stopped work in the Hides region of the Southern Highlands after residents demanding additional compensation for their land threatened workers at the plant.

The Papua New Guinea government had earlier said it was preparing to deploy troops to quell the protests.

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