THE Papua New Guinea negotiating team is working towards a gas agreement for the P’nyang project in Western, the country's Prime Minister James Marape says.
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| PNG Goverment set to seal deal for P’nyang Gas project, says PM Marape. Photo P'nyang South # 2 drilling in P'nyang gas project area where Reliable Electrical Contracting Ltd of Port Moresby and Birak Investment Ltd of Wokfiyak Clan,Olsobip village,Western Province are joint venture partner to do spin off business. |
He said this yesterday in Parliament in response to questions from Ijivitari MP Richard Masere on the P’nyang and the Papua LNG projects.
Marape said the heads of agreement (HOA) had been secured and were moving into the next level of agreements to ensure the project was in order.
Marape and his delegation executed the HOA for the P’nyang gas agreement and an equity purchase HOA with ExxonMobil in Texas, US, two months ago.
The HOA captures fiscal, regulatory and licensing terms that were negotiated.
The equity HOA provided for the State to acquire at cost 10 per cent additional equity from ExxonMobil in the P’nyang project.
“So the heads of agreement is secured. Now the State negotiating team are working to ensure that gas agreement is delivered to the expectations that we want.”
Marape said negotiations for P’nyang were still ongoing and would be completed with a gas agreement. “In the next phase, we will be engaging with the Western government.”
Statement