LNG Project delivering despite being sensitive to PNG Economy

Despite getting a bashing at home and overseas, the PNG LNG Project is delivering what it is expected of it as oil prices increase on the global market.
Treasury Secretary Dairi Vele said this during the 2019 budget press lockup last week.
“Because we weren’t earning much money from PNG LNG, we started to bash the project a little bit,’’ he said.
“It is just the case that our project is very sensitive to price. So when price goes down we take a hit.
“As you can see at the price comes up all of a sudden this thing is spitting out a little bit more cash, as price stay around this place around US$60 to US$75 per barrel for the next 12 to 24 months again that number and dividend grow bigger and of course it pulls the timeframe for them to pay tax much sooner.”
He made the comments on the back of announcements in delivery of major tax revenues to the state through the Internal Revenue Commission and dividend payments being made to Kumul Petroleum Holdings Limited over the past few weeks. Post Courier/PMW/Photo: LoopPNG

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