Papua New Guinea’s Petroleum Minister Jimmy Maladina has welcomed the signing of the Papua LNG Development Forum Tier 1 Agreement, with negotiations on remaining benefit-sharing arrangements scheduled to continue through October and conclude in early November.
Maladina said the agreement establishes a foundation for further negotiations and the development of a benefit-sharing framework intended to ensure that the Papua LNG project delivers lasting economic and social benefits to Papua New Guineans.
The minister said negotiations on Tiers 2, 3, 4 and 5 would proceed throughout October, guided by the sharing arrangements established under Tier 1.
The remaining agreements are expected to be concluded in early November, he said.
“Today’s signing is an important achievement, but it is not the end of the Development Forum process,” Maladina said. “It establishes the foundation for the remaining negotiations and, ultimately, for the effective implementation of the benefits agreed for our people.”
The Development Forum process brings together the national and provincial governments, landowners and Papua LNG project partners to negotiate arrangements for sharing the benefits of the project.
Maladina said landowners and affected communities must remain active participants and beneficiaries throughout the project's life.
He identified royalties, development levies, equity participation, infrastructure development, business opportunities, employment, training and local content as key areas through which the project should deliver tangible benefits.
The minister said the project's success should be measured not only by gas exports and revenue generation but also by improvements in community infrastructure and services, employment prospects, skills development and opportunities for local businesses.
He also emphasized transparency, accountability and good governance in ensuring that benefits reach legitimate beneficiaries and support long-term development.
Local participation
Maladina called for greater participation by Papua New Guinean workers and businesses, supported by training, skills development, procurement opportunities and partnerships that transfer knowledge and capabilities to local companies.
He urged all parties to negotiate in good faith, saying differences should be resolved through dialogue, verified information and respect for the agreed process.
The minister acknowledged the contributions of provincial governments, landowner leaders, project partners, the National Petroleum Authority, other state agencies, forum facilitators, technical teams and advisers involved in the negotiations.
He said implementation would ultimately determine whether the commitments made through the Development Forum process translated into benefits for communities.
The government remains committed to working with stakeholders to develop Papua LNG in a way that strengthens the national economy, creates opportunities for Papua New Guineans and supports long-term development, Maladina said.
