• PNG Business News

Marape Not Happy On P’nyang Deal



Prime Minister James Marape is unhappy with the “lack of interest” shown by ExxonMobil in the State’s push for a better deal on the P’nyang gas project negotiations. And he has come out public with his displeasure with ExxonMobil’s reluctance to migrate towards a mid point in which State takes home a better deal instead of the terms similar to existing concession based gas agreements PNG has signed with ExxonMobil and partners for PNG LNG and Total and partners for Papua LNG.


Mr Marape has now outlined the next step to be taken to overcome the stalemate reached between the State Negotiation Team and developers on the important gas project deal.


“I am satisfied that our SNT has subscribed to mandate Cabinet through Minister Kerenga Kua and Exxon has been told what our intentions are and in the name of fairness, a Ministerial Gas Committee (MGC) will request both the SNT and Exxon to present their position and the State through a committee of leaders will decide what is the best outcome for PNG,” he said.


Mr Marape has indicated on all levels of discussion that fundamental policy principles that influences his government mindset will not change including no new fiscal concessions in P’Nyang, treating P’nyang as separate from both PNG and Papua LNGs, increase in DMO and local content participation will be fundamental in progressing P’nyang.


“In the meantime I call upon Exxon and Oil Search not to hold Total project to ransom and work with Total to deliver Papua LNG.


You are beneficiaries of concessions previous governments have given and if you model the project to be uneconomical then don’t push it, let’s leave the gas in my land and you develop Papua plus furthering work in PNG LNG,” Mr Marape says.


“After SNT and Exxon presents to MGC, cabinet will decide on P’nyang and we will shift focus to Wafi-Golpu, Porgera, Pasca gas plus other resources sectors so life in PNG is not only dependent on P’nyang plus gas resources.”


In the meantime, Mr Marape assures the nation that both mining and petroleum ministers will be bringing in reforms to the mining and oil and gas Acts through an enabling Organic Law this year. Continue reading at https://postcourier.com.pg/marape-not-happy-on-pnyang-deal/ | Post Courier

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