Prime Minister Hon. James Marape has welcomed major progress on the Papua LNG Project, saying revised arrangements have strengthened Papua New Guinea’s benefits while providing greater certainty towards a Final Investment Decision (FID) by December 15, 2026.
Prime Minister Marape said Papua LNG represents an estimated K60 billion in foreign direct investment into Papua New Guinea and is a monumental project for the next phase of the country’s economic growth.
“Papua LNG is not just another resource project. It represents around K60 billion in foreign direct investment and will be monumental for the next phase of Papua New Guinea’s economic growth,” he said.
“It will bring major new investment into our economy, create jobs and business opportunities, strengthen our revenue base and provide opportunities for Papua New Guineans during construction and throughout the life of the project.”
Prime Minister Marape commended TotalEnergies and ExxonMobil, together with the State negotiating team, for working constructively to move the project forward.
He acknowledged TotalEnergies Chairman and CEO Patrick Pouyanné and ExxonMobil Chairman and CEO Darren Woods for their leadership, as well as Petroleum Minister Hon. Jimmy Maladina and State Negotiating Team Chairman Dairi Vele.
“I commend TotalEnergies and ExxonMobil and our State team for working together to achieve a very good outcome for Papua New Guinea,” Prime Minister Marape said.
He also welcomed the arrangements for ExxonMobil to take on operatorship responsibilities for Papua LNG, commending TotalEnergies for supporting the move in the interest of progressing the project.
“The important thing for Papua New Guinea is that Papua LNG progresses to FID and construction,” he said.
PNG SECURES 25 PER CENT EQUITY
Prime Minister Marape said one of the most significant gains was an additional 2.5 per cent equity opportunity, taking Papua New Guinea’s stake in Papua LNG to 25 per cent.
“This means Papua New Guinea stakeholders can hold a quarter of Papua LNG,” he said.
“My Government has consistently pursued greater equity in resource projects. We want Papua New Guinea to participate as an owner and receive a fair return from our resources.”
CHEAPER DOMESTIC GAS
Prime Minister Marape said another important gain was the reduction in the domestic gas pricing formula from 9 per cent JCC to 5 per cent JCC.
He said cheaper domestic gas would benefit power producers and ultimately help reduce electricity generation costs.
“We want our gas resources to contribute directly to cheaper and more reliable electricity for our industries, businesses and households,” he said.
Prime Minister Marape said negotiations had also produced improvements relating to PNG LNG, including royalty and development levy calculations, providing additional benefits for Papua New Guinea stakeholders.
US$1.95 BILLION NOT A FREE GIVEAWAY
Prime Minister Marape said the approximately US$1.95 billion fiscal support package associated with Papua LNG was structured as a give-and-take mechanism rather than an unconditional concession by the State.
“When prices are down, the agreed concessions apply. When prices are higher, the State has mechanisms to recover value,” he said.
“It is not a free gift. You take when prices are down, and the State recovers when prices are up.”
Prime Minister Marape commended TotalEnergies and ExxonMobil for accepting a structure that balanced project viability with Papua New Guinea’s long-term interests.
PNG BENEFITS PASS 55 PER CENT THRESHOLD
Prime Minister Marape said the latest negotiations had lifted Papua New Guinea’s overall economic benefit from Papua LNG to above the Government’s 55 per cent threshold.
“This latest round of negotiations has moved the total economic gain for Papua New Guinea from Papua LNG above 55 per cent,” he said.
“This is consistent with our policy of securing a better return for our people from their natural resources.”
He said the Government would continue pursuing greater equity, landowner benefits, domestic market obligations, taxes, royalties and development levies while ensuring projects remained internationally competitive.
“This is the Marape Government signature — Take Back PNG,” Prime Minister Marape said.
“Take Back PNG does not mean shutting investors out. It means working with investors so they make a fair return while Papua New Guinea receives a fair and lasting share from its resources.”
PM CALLS FOR SUPPORT TO GET PROJECT TO FID
Prime Minister Marape called on Gulf and Central provincial leaders, landowners and other stakeholders to work constructively through the remaining development forum processes.
“Express your issues and put everything legally due to you on the table,” he said.
“Our policy is to ensure provinces and landowners receive the maximum benefits legally available to them, but we must also see the bigger picture and get this project moving.”
Prime Minister Marape said Papua LNG would form part of a major pipeline of petroleum and mining developments that could sustain construction, jobs and business opportunities over the next 15 years.
He said the Government was working to sequence Papua LNG, P’nyang and other major resource developments to maintain investment and economic activity.
“I appreciate TotalEnergies and ExxonMobil for sticking with Papua New Guinea and working with us to ensure Papua LNG reaches FID this year,” Prime Minister Marape said.
“Papua LNG is a K60 billion investment of national significance. Our Government will continue working with investors, provinces and landowners to get it across the line while securing the best possible outcome for the people of Papua New Guinea.”