Papua LNG Project

P’nyang Re-engagement

Mr. Smaré said, “In light of the extremely challenging economic conditions in PNG, the P’nyang and Papua LNG projects, are projects that are desperately needed to be kick-started to kick-start the country’s stagnant economy creating jobs, bringing in foreign exchange and providing opportunities for PNG businesses, particularly SMEs in the impacted areas.”

PM outlines major projects

They are the Papua LNG Project, New Porgera Mine, Wafi-Golpu Mine, P’nyang LNG, Pasca LNG and Pandora LNG.

 

Marape announced this when responding to the Ministerial Statement by Treasurer Ian Ling-Stuckey on the ‘2020 Final Budget Outcomes (FBO) and 2021 Mid-Year Fiscal and Economic Outlook (MYEFO) and the Way Forward’ on Wednesday.

 

“We are working very hard, and in just two years, we are discussing Papua to ensure that it takes off, Wafi-Golpu, New Porgera, Pandora, Pasca and P’nyang.

 

Chamber happy with Bill

The Chamber says, the country urgently needs to get moving, and to provide economic support to the national economy.

On Friday 20 August, the government tabled, debated, and overwhelmingly passed the Oil and Gas, Papua LNG Project Amendment Bill 2021, 79 votes to 0.

Chamber President, Anthony Smaré said, “The Government’s passage of this important legislative illustrates the sincere commitment from the government of the need to get the Papua LNG Project off the ground.”

Chamber Supports Bill

The Government tabled, debated, and overwhelmingly passed the Oil and Gas, Papua LNG Project Amendment Bill, 2021 79 votes to 0.

 The Chamber expressed its support of this and said the country urgently needs to get projects moving to provide economic support to the national economy.

Chamber President, Anthony Smare said the Government’s passage of these important legislative changes illustrates the sincere commitment from the government of the need to get the Papua LNG Project off the ground.

Papua LNG looks promising

Deputy Prime Minister, Sam Basil, met with TOTAL chairman and CEO, Patrick Pouyanné, concerning the Papua LNG project timeline for future investment in Papua New Guinea.

Both men are pleased to announce the remobilisation of the project teams and other required resources to move the project forward.

“With the signing of the Fiscal Stability Agreement, it is clear to both the Government and TOTAL SE. The project is now moving towards a final investment decision with no further delays,” Basil said.

Haiveta calls for proper SMLI

Governor Haiveta said this when urging Prime Minister, James Marape, to protect the interest of Papua New Guinea.

He made this call following the signing of the Fiscal Stability Agreement (FSA) between the National Government and project co-venturers of the Papua LNG Project. 

Gulf Governor, Chris Haiveta, said urged the Government to follow all processes, especially in identifying all landowners, before the Papua LNG construction begins. 

Petroleum Retention License (PRL) extended

This coincides with the signing of the Fiscal Stability Agreement (FSA) yesterday.

In a statement, Minister Kua said the application for extension was received by the Department of Petroleum from the PRL 15 Joint Venture Partners on February 3rd and technical reviews followed until February 8th when the Petroleum Advisory Board (PAB) recommended to the Minister to grant the extension.

Minister Kua said the PRL 15 license has good standing in the last two terms (10 years) and the JV Partners have met work commitments under the license conditions.

LOs determination stopped by injunction

Minister Kua said a National Court injunction taken out by the Purari Development Association is preventing Papua LNG Project lead developer Total, from presenting him the Social Mapping and Landowner Identification (SMLI) Report.

Kua said with the signinig of the Fiscal Stability Agreement, they can now focus on addressing the court injunction, and begin working with landowners from both Gulf Province, which hosts Papua LNG, and Central Province.

Production levy introduced for Papua LNG

Treasury Secretary Dairi Vele said this during a recent media conference.

The Treasurer also announced several other components of the fiscal terms of the Papua LNG Project which he said equal or are better than the PNG LNG Project.

“Production levy is just an extra tax, as it comes out of the ground, that’s where we tax you. Unlike the profitability of the company where we have to wait and see if the price is good and if the company has done good and if they paid their debts.

JV partners to carry State’s ‘sunk cost’

Money already spent, but that is not recoverable, is a sunk cost.

This will be repaid once first gas is produced at an interest rate of 7 percent.

Speaking after the signing of the Papua LNG Project Agreement, which defines the fiscal framework of the project, Prime Minister Peter O’Neill said an understanding has been has been reached with the JV partners for the deferment of the state ‘sunk cost’ for its equity in the project.