UPDATE 1-Exxon sees $18 bln of possible investment in Papua LNG, P'nyang projects

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MELBOURNE, Dec 1 (Reuters) - Exxon Mobil Corp sees its P'nyang gas project and the Papua LNG project, led by TotalEnergies, investing more than $18 billion in the Pacific island nation over a decade, a company official said on Wednesday.

Exxon is in talks with the government of Papua New Guinea for a pact on development of the P'nyang gas field, which will feed its PNG LNG plant after existing gas sources run down.

Before that, TotalEnergies plans to develop the Papua LNG project, which will involve producing gas from the Elk and Antelope fields to feed two new gas chilling units, called trains, at the PNG LNG site.

"Our development plan phases P'nyang after the Papua LNG project, which could result in nearly a decade of continuous construction activity ... and potentially more than 65 billion kina invested in that timeframe," said Peter Larden, the PNG managing director of Exxon Mobil.

The figure is equivalent to $18 billion.

Larden's remarks were made to the PNG Mining and Petroleum Conference. ($1=3.6036 kinas) (Reporting by Sonali Paul; Editing by Clarence Fernandez)

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