Prime Minister Hon. James Marape has firmly rejected recent claims made by former Prime Minister Peter O’Neill regarding delays and alleged concessions in major resource projects, stating that the Government has not stalled development but is instead protecting Papua New Guinea’s long-term national interest.
The Prime Minister said commentary surrounding both the Papua LNG and Wafi-Golpu projects has been based on misinformation and does not reflect the true nature of ongoing negotiations.
No US$3 Billion Concession – Mechanism Protects State Interest
Prime Minister Marape clarified that claims of a US$3 billion concession under Papua LNG are incorrect.
“There is no US$3 billion concession,” he said.
“What is under discussion is a standby fiscal mechanism linked to global oil prices. It operates in both directions—if prices rise above agreed benchmarks, the State receives more revenue; if prices fall below, adjustments are made accordingly. If prices remain stable, no change applies.”
He said this structure is designed to protect the State’s 52 percent benefit share under the 2019 Papua LNG Agreement, not reduce it.
“This is not a giveaway. It is a safeguard to ensure Papua New Guinea benefits across all market conditions.”
Government Has Not Delayed Papua LNG
Prime Minister Marape reaffirmed that the Government has not delayed the Papua LNG project, noting that the agreement signed in 2019 remains intact.
“At no point has the State stopped the project from progressing,” he said.
“Delays have largely arisen from developers reassessing project costs after tenders returned higher-than- expected estimates.”
He said developers have sought concessions, but the Government has maintained a firm position.
“When developers come back asking for relief, our response is clear—nothing is free. Any support from the State must include mechanisms for Papua New Guinea to benefit when commodity prices improve.”
Learning From Past Agreements
Prime Minister Marape pointed to past decisions that resulted in significant losses for the country, stressing that his government will not repeat those mistakes.
“Under previous arrangements, the State accepted 20 percent equity in Wafi-Golpu when PNG law entitles it to 30 percent. That 10 percent difference represents close to US$10 billion in value forgone over the life of the project,” he said.
He also referenced earlier LNG arrangements where over US$2 billion in tax concessions were granted without recovery mechanisms.
“This Government will not agree to arrangements that permanently disadvantage our country.”
Stronger Outcomes Under Current Government
Prime Minister Marape highlighted the Government’s track record in improving national returns from resource projects.
“At Porgera, Papua New Guinea now holds 51 percent equity—something that was not achieved before. The project is delivering better returns for our people.”
He reiterated that the Government’s benchmark remains clear:
“We will only proceed with projects where equity, royalties, and taxes combined deliver around 55 percent benefit to Papua New Guinea.”
Technical Negotiations Ongoing
Prime Minister Marape said Papua LNG negotiations are ongoing on a weekly basis and involve detailed financial, legal, and fiscal analysis.
“These negotiations are highly technical and are not conducted through press statements. Every position we take is backed by data and careful analysis.”
He added that escalation to CEO-level discussions with project partners is a necessary step to resolve complex issues and secure final outcomes.
Economic Recovery and Growth Since 2019
The Prime Minister also rejected criticism of his government’s economic management, noting that his administration inherited an economy in recession in 2018.
“When we took office, the economy was in decline. Today, we have stabilised it and are growing it.”
“We are building a diversified economy beyond oil and gas to ensure sustainable long-term growth.”
Proper Governance Being Followed
Prime Minister Marape reaffirmed that all major project agreements will be subject to proper constitutional processes.
“The National Executive Council is the appropriate body to review and approve agreements of this magnitude. This is proper governance and we will continue to follow it.”
He confirmed that an announcement on Papua LNG is expected in the coming days once negotiations are concluded.
Call For Responsible Leadership
Prime Minister Marape urged leaders to avoid politicising critical national projects.
“Resource projects are too important to be politicised. They must be handled responsibly, with discipline and focus on national interest.”
“We will not be pressured into signing agreements that do not benefit our people. Our duty is to secure the best possible outcomes for Papua New Guinea.”