PNG Prime Minister Marape gives update on progress of Papua LNG project

 THE Papua LNG project in Gulf will move into pre-Feed (front end engineering and design) in September, Papua New Guinea Prime Minister James Marape has said.

“Papua LNG will move into pre-Feed in September after the financial stability agreement was signed in February,” he said.

“It is my expectation that as the country celebrates its 46th Independence anniversary on Sept 16, we will observe much progress in the Porgera mine, Papua LNG and Pasca A P’nyang and Wafi-Golpu projects.”

Marape said the Government was focused on achieving better deals for the country in P’nyang and Wafi-Golpu projects as well.

“My Government has established the SNT (State negotiating team) for P’nyang and will be commencing talks with ExxonMobil and its partners later this month both here and in Houston (Texas) to progress this project,” he said.

“For Wafi-Golpu, the Government has cleared the term sheets, and it is expected that parties will convene this month to establish negotiation pathways for formal negotiations with all stakeholders.

“Without changing the laws or using proposed new laws we are getting far superior deals based on government policy-based negotiations with our investors.

“For Porgera, we are getting 65 and to 35 per cent in favour of the State in the first five years, we are getting an average 55 per cent to 45 per cent in favour of the State upfront. The last agreement any government has secured stopped at 51 per cent project economic, gains to PNG for the Papua

LNG project by the O’Neill government.”

Marape said the current Government had negotiated a better deal for Twinza’s Pasca A project.

“The production levy was negotiated up to a new level at five per cent for the petroleum sector, royalty and development levy calculations have now shifted positively for PNG to two per cent straight on the gross revenue with no deductions, five per cent of liquid petroleum gas (LPG) is secured – which is sufficient to replace the current volume of LPG imported for the domestic market – and the project’s National Content Plan will be tied into the Pasca A project gas agreement.”

Statement/ The National / Pacific Mining News

Next : PNG KPHL lost K951.52mil from transactions related to UBS loan

Previous Post Next Post