The PNG Government will stand by the Papua LNG Gas Agreement that was signed in April 2019 by former Prime Minister Peter O’Neill.
Minister for Petroleum Kerenga Kua said the government had cleared the project operator, Total, to proceed “full steam ahead” with the implementation of the Papua LNG Project.
Minister Kua also said the government had authorised for the project to proceed in accordance with the terms of the gas agreement.
The agreement outlines the fiscal framework for the Papua LNG Project, including domestic market obligations, the state’s project equity interest and the project’s commitment to local workforces, businesses and communities.
The acceptance of the deal will also benefit the ExxonMobil-led PNG LNG Project, with the two developments planning to work collaboratively with shared infrastructure and resources.
Oil Search Managing Director Peter Botten said the company was pleased the government had completed its review and endorsed the gas agreement.
“The Papua LNG Project will help deliver billions of kina in value to the PNG economy, support local businesses and provide greater employment opportunities for thousands of Papua New Guineans,” Mr Botten said.
The joint venture, consisting of Total, ExxonMobil and Oil Search, will work in collaboration with the government on finalising the project’s national content plan which aims to maximise the involvement of PNG citizens and local businesses in the development and operation of the project.
For more information visit the Oil Search website.
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