The signing was supposed to take place on Friday, 5th April.
Prime Minister O'Neill told this newsroom that lawyers are still working on the final terms of the project.
The Papua LNG project, in Gulf Province, is projected to be much bigger than the first LNG project (PNG LNG) in the country.
However, some landowners recently filed a judicial review asking the court to identify the genuine landowners before the agreement is signed.
The Purari Development Association claimed that the title to Special Agriculture Business Lease located on the project site was fraudulently transferred to an individual.
They have called on the Government to defer the agreement signing and fix the landowner issues first.
(Filepic of parties after the MOU signing last year)