Regional LNG: Villagers attack Exxon Mobil's LNG project in PNG

Villagers in Papua New Guinea (PNG) attacked Exxon Mobil's $15 billion LNG project late last week, burning heavy machinery and using high-powered weapons to damage construction equipment, a PNG newspaper reported.

The attack took place on Friday night at Kaiam, near the project's Kopi LNG facility, The National newspaper reported.

The attacks were part of ongoing land disputes within the footprint of the $15 billion LNG project. Residents of the area have been frustrated by what they see as their exclusion from participating in the initial stages of construction of the 6.6-million-ton-per-year processing plant that began this year, the paper said.

No one was wounded or directly threatened in the attacks, Exxon said.

The project is at an early stage of a four-year construction period, with activities under way in design, pre-mobilization and early site work. It is expected to start exporting LNG in 2014.

The Papua New Guinea government holds equity in the project, while Exxon Mobil is the majority stakeholder. Other equity holders include Oil Search, Santos and Japan's Nippon. (*)