Mainstream news - Esso messing around in PNG

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THE cost of a liquified natural gas (LNG) project in Papua New Guinea part-owned by Santos and Oil Search has increased by $US3.3 billion ($A3.18 billion) to $US19 billion ($A18.34 billion).

The PNG LNG project, the country's largest resources project, is being operated by Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation, and Oil Search has a 29 per stake partner.

Santos, Japan's JX Nippon Oil and Gas Exploration, a unit of JX Holdings, and the Papua New Guinea government are also stakeholders.

Esso has indicated the cost estimate for the project has risen from $US15.7 billion to $US19 billion, due mainly to foreign exchange factors, Oil Search said on Monday.