Papua LNG

Papua LNG signing deferred

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.

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Developers to hold state’s equity

This is to ensure the state does not borrow to purchase equity in a project.

“The initial understanding we have with the second LNG and in particular Wafi-Golpu is that our participation in equity will be carried by the developer until the first export of either the gold and copper from Wafi-Golpu or in the second LNG Project, meaning we don’t have to borrow large sums of money that we are unable to repay.

PM anticipates billions from projects

Prime Minister Peter O’Neill said both projects, if approved, will bring in an investment of US$26 billion (K82.6 billion) and will have a significant injection into the economy of our country.

He said this in parliament on January 22nd.

“In total there will be close to US$26 billion, which is close to K100 billion investment in the country and that will have a significant injection into the economy of our country,” said O’Neill.

Basic LNG framework agreed to: PM

Following the signing of the Memorandum of Understanding between the State and Total and its partners, ExxonMobil and Oil Search, the Prime Minister said they are happy with the current framework.

A first for PNG to market gas

PNG’s oil and gas company, Kumul Petroleum Holdings Ltd, as a partner with the project developer TOTAL SA, has come up with an agreement to have KPHL staff undergo training with TOTAL SA in Paris on marketing our gas to buyers.

Announcing two senior employees on secondment with Total SA for 2 years, Kumul Petroleum Managing Director Wapu Sonk said the secondment is part of staff development and also signifies a milestone in assigning KPHL staff to the Total and Kumul Marketing Joint Venture.

Papua LNG plant to remain at Caution Bay

Minister for Petroleum and Energy, Nixon Duban, said the Government respected the decision by Total as the decision wass based on project economics.

Duban made the statement in Parliament this week when asked by Kairuku-Hiri MP, Peter Isoiamo, to clarify on where the plant site would be as the Caution Bay location is situated within his jurisdiction and close to the PNG LNG Site.

Gulf Governor, Havila Kavo, has been vocal about having the plant site in his Province and not in Central Province.

Kavo refuses Papua LNG Pipeline

Kavo said this following the release of Gulf LNG operator, Total SA’s, Environmental Impact Study (EIS) yesterday justifying the company’s reasons to build its LNG Plant Site in Caution Bay in the Central Province.

He said the report ignored the ‘No Pipeline Policy’ affirmed by the Provincial Government and people.

Total to use local groups to develop Papua LNG

In a Q&A with Business Advantage PNG, Managing Director, Phillipe Blanchard, says currently local labour and companies are engaged in logistical and drilling activities.

He said the project is already benefiting local opportunities in logisitics and drilling activities. And once full construction starts, which is expected in 2019, more locals and business will benefit.

Total has between 140 and 150 staff based in Port Moresby and PRL 15.

PNG has enough for second LNG scheme, says Sonk

The official was dispelling concerns that PNG LNG operator ExxonMobil's takeover of InterOil, now approved by the latter's shareholders, would leave the country with just one liquefaction project.

Total's proposed Papua LNG "would still be built" even once Exxon expands its 6.9 million ton per year PNG LNG project with a third train, says Wapu Sonk, managing director of PNG national oil company, Kumul Petroleum. Kumul holds the government's 16.6 percent stake in PNG LNG.

Total confident in delivering Papua LNG

Managing Director Philippe Blanchard said they (Total) had made a commitment that their schedule is on time and they will make a final investment decision in 2018 and production around 2022 and 2023.

He said they are committed and will deliver the project.

Meanwhile, Minister for Petroleum and Energy, Nixon Philip Duban said the Government is standing firm with Total E&P PNG to ensure it meets its target in developing and delivering the Papua LNG project in the Gulf province as scheduled.