Prime Minister Hon. James Marape has assured Papua New Guineans that the country’s two largest resource projects — Papua LNG and the Wafi-Golpu Gold and Copper Project — are not abandoned and are progressing toward their next critical development stages.
Speaking on the margins of the World Economic Forum (WEF) Annual Meeting in Davos, Prime Minister Marape said his government is working intensively with investors to move both projects toward Final Investment Decision (FID), execution of key agreements, and issuance of development licences.
“It is no secret that my government is working very hard to ensure Papua LNG and Wafi-Golpu move into their next phases — agreements to be signed, licences to be issued and FIDs to be announced,” Prime Minister Marape said.
Papua LNG Remains on Track
Prime Minister Marape confirmed he held discussions with Mr Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, who provided firm assurance that the Papua LNG project remains active. “The project is not abandoned,” Prime Minister Marape said. “I was pleased to receive Mr Pouyanné’s full assurance that Papua LNG is continuing to move forward.”
He explained that following the first round of Engineering, Procurement and Construction (EPC) tenders, estimated project costs had increased to approximately US$18 billion, reflecting global inflation, supply-chain pressures and higher financing costs.
However, he said TotalEnergies has since undertaken a comprehensive cost-reduction exercise.
“They have worked extremely hard and managed to reduce close to US$4 billion in projected cost increases,” he said.
The Prime Minister said the project remains economically viable at an estimated construction cost of around US$14 billion, ensuring acceptable investor returns while preserving national value.
Government and Developers Reviewing Final Cost Structure
Prime Minister Marape said the Government and TotalEnergies have agreed to jointly review remaining cost components.
“We have agreed that Government and project teams will sit together to examine every element of construction cost — identifying where we can give and where we can take — so that investors achieve a fair return while the State preserves maximum long-term value,” he said.
He emphasised that concessions would not be granted without safeguards.
“The State will not make concessions freely. Any adjustment must ensure that Papua New Guinea retains maximum benefit across the life of the project.”
Sequenced Development with P’nyang LNG
Prime Minister Marape said progress on Papua LNG is strategically linked to the development of the P’nyang LNG project, led by ExxonMobil.
“If Papua LNG advances, it allows P’nyang LNG to follow in a properly sequenced manner,” he said.
Together, Papua LNG and P’nyang LNG could represent US$20–25 billion in combined capital investment over the next decade.
“If sequenced well, Papua New Guinea could see nearly 10 years of continuous LNG construction — comparable to, or greater than, the original PNG LNG development,” the Prime Minister said.
Wafi-Golpu Peer Review Near Completion
On the Wafi-Golpu Gold and Copper Project, Prime Minister Marape said he met with Mr Patrice Motsepe, Chairman of Harmony Gold Mining Company.
He confirmed that the independent peer review process addressing outstanding technical matters is nearing completion.
“The peer review team is expected to return its findings before the end of this month,” he said. The Prime Minister reaffirmed the State’s commitment to participate meaningfully in the project.
“The State intends to participate at 30 per cent equity in Wafi-Golpu,” he said. “The State must not be questioned about its ability to finance its equity. The State does not go broke — it refinances over time.”
He said the Government stands ready to bring Harmony Gold and Newmont Corporation together to conclude remaining issues and progress the project toward development approval.
Balanced National Development
Prime Minister Marape said advancing both LNG and mining projects would ensure balanced economic growth across the country.
“Papua LNG and P’nyang LNG anchor development in the south, while Wafi-Golpu and the Frieda River Project anchor mining development in the north,” he said.
“This balance ensures that economic activity over the next decade is fairly distributed across Papua New Guinea.”
Offshore Exploration Continuing
The Prime Minister also confirmed that offshore petroleum exploration remains active.
He said offshore oil and gas investments continue, with TotalEnergies confirming ongoing exploration in the Mailu area of Central Province, while the Twinza–MRDC joint venture progresses development of the Pasca A Project in the Gulf of Papua.
He said investors involved in the Pasca A and Pasca B gas projects, operated by Twinza Oil Limited, have confirmed that offshore exploration activities in the Gulf of Papua and Central Province waters are continuing at full pace.
Exploration programmes include assessment for potential oil and condensate resources.
Long-Term National Interest
Prime Minister Marape acknowledged public frustration over project delays but said major resource developments require careful and disciplined negotiation.
“I share the frustration felt by many Papua New Guineans,” he said. “But these are long-term projects. Once contracts are signed, they last for decades. We must ensure every issue is fully understood before commitments are locked in.
“Our responsibility is to make sure the State wins to the maximum possible extent, while investors also achieve fair returns — so the partnership remains strong for the life of the project.”
Outlook for 2026
Prime Minister Marape said discussions held at the World Economic Forum have renewed confidence that both Papua LNG and Wafi-Golpu can reach major milestones in 2026.
“We have undertaken to return to work immediately on both projects,” he said.
“We are optimistic that substantial progress will be achieved within the first quarter of this year.”