ExxonMobil is accelerating investment in the $12.5 billion Papua New Guinea liquefied natural gas (PNG LNG) project with the start of early works infrastructure projects worth about $600 million.

Early works include a range of projects, such as the upgrade and repair of roads, construction of camps, wharf upgrades, early site preparation in the PNG Highlands, construction of training facilities and ordering of long lead items.

“The decision to proceed with early works, comprising an accelerated investment of approximately $600 million over the next 12 months ($200 million net to Oil Search), prior to the formal sanction of the project at the end of this year, is a major vote of confidence in the PNG LNG project,” Oil Search’s managing director Peter Botten said today.

The development of the infrastructure will help allow full construction to start in early 2010, following the final investment decision which is scheduled for the end of this year.

As recently announced by ExxonMobil, a number of contracts for early works activities have already been awarded, including an upstream early works contract to the Clough Curtain joint venture.

The workscope includes civil engineering, construction and site preparation to upgrade existing infrastructure and build new infrastructure ahead of full-scale construction starting early next year.

The partners have also signed an agreement with the Eos joint venture of WorleyParsons and KBR covering a range of services including engineering and integrated project team services for construction and project management of the LNG project.

The Eos joint venture, which will work from sites in PNG and Brisbane, Australia, will be integrated with ExxonMobil's project team and will support project and construction management activities.

The contract awards came just weeks after PNG landowners and the government signed a multi-billion dollar benefit-sharing agreement relating to the project.

The pact gives landowners and provincial governments 7% equity in the project, up from their original 2%, which will come from the state's share.

The two-train, 6.3 million tonnes-per-annum PNG LNG project, which is targeting production start-up in 2014, is planned to be expanded by a third 3.15 million-tpa train in the future.

The current PNG LNG partners are operator ExxonMobil with 41.5%, Oil Search on 34%, Santos with 17.7%, Nippon Oil 5.4%, Minerals Resources Development Company on 1.2 % and Eda Oil with 0.2%. The interests will change when the PNG state nominees join as equity participants in future.