BASIS POINT-SG named adviser for Papua New Guinea LNG project

MELBOURNE, April 15 (Reuters Basis Point) - Societe
Generale (SOGN.PA: Quote, Profile, Research, Stock Buzz) has been retained as the financial advisor
for the ExxonMobil (XOM.N: Quote, Profile, Research, Stock Buzz)-led liquefied natural gas (LNG)
project in Papua New Guinea, sources said on Tuesday.

The French bank had won an initial six-week mandate to
advise on the scoping study phase in the fourth quarter of last
year. Under the new mandate, it will work on the implementation
and the final investment decision of the $10-$11 billion
project, they said.

The sponsors intend to fund the development on a
non-recourse, long-term project financing basis.

The LNG project, which will have an annual capacity of 6.3
million tonnes, is targetted to reach a final investment
decision by 2009 and first gas deliveries by 2014.

Exxon said on April 3 that it was still in negotiations
with the PNG government over terms of the project, and the
project would begin front-end engineering and design (FEED)
work once negotiations are finalised.

The project was originally due to enter the FEED phase by
the end of last month.

U.S. energy major Exxon is the operator of the planned
project, while Australian-listed Oil Search Ltd (OSH.AX: Quote, Profile, Research, Stock Buzz),
Santos Ltd (STO.AX: Quote, Profile, Research, Stock Buzz), Nippon Oil Corp (5001.T: Quote, Profile, Research, Stock Buzz) and Papua New
Guinea landholders are the other shareholders.
($1=A$1.08)
(Reporting by Sharon Klyne)