Prime Minister Hon. James Marape has commended the political leadership, landowners and communities of Gulf and Central provinces for reaching a landmark agreement on the sharing of benefits from the Papua LNG Project, describing it as a major milestone towards the project’s targeted Final Investment Decision (FID) on 15 December 2026.
The Prime Minister welcomed the agreement reached on Wednesday, 7 October, establishing an 80:20 headline benefit-sharing arrangement between Gulf and Central provinces, saying it demonstrated maturity, cooperation and a shared commitment to national development.
“This is a very important milestone in our march towards Final Investment Decision for Papua LNG. I commend the leaders of Gulf and Central provinces, the landowners, the facilitators and everyone involved for putting aside differences and reaching an agreement that is fair and equitable,” Prime Minister Marape said.
He particularly acknowledged Petroleum Minister Hon. Jimmy Maladina and the national petroleum authorities for their leadership, coordination and facilitation of the negotiations.
The Prime Minister said the agreement reflected the longstanding relationship between the people of Gulf and Central, whose ancestors traded through the traditional Hiri trading system.
“Gulf and Central are not strangers to each other. From ancient times, through the Hiri trading system, our people understood trade, cooperation and the principle of equitable benefit-sharing.
“That same spirit has prevailed in this important agreement. Gulf Province provides the gas resource and also hosts important pipeline infrastructure, while Central Province hosts the gas processing and export facilities, together with sections of the pipeline infrastructure. Both provinces have a legitimate stake in this development,” he said.
Prime Minister Marape said the 80:20 arrangement was consistent with the broad principles established under the existing PNG LNG Project, where benefits were distributed between upstream resource areas, downstream facilities and pipeline corridors.
He congratulated Gulf Governor Sir Christopher Haiveta, Acting Gulf Governor Hon. Morris Taudevin, Kikori MP and Minister for Provincial and Local Level Government Affairs Hon. Soroi Eoe, Kerema MP and Finance Minister Hon. Thomas Opa, Central Governor Hon. Rufina Peter, Hiri-Koiari MP Hon. Keith Iduhu, Kairuku MP Hon. Peter Isoaimo, and landowner representatives from both provinces for their leadership, cooperation and commitment to reaching the historic agreement.
“This agreement is a credit to all of you. It demonstrates that when our leaders sit together in good faith, we can reach outcomes that serve our people and strengthen investor confidence,” he said.
CABINET TO CONSIDER EQUITY AND DEVELOPMENT BENEFITS
Prime Minister Marape said the agreement would enable Minister Maladina to bring the necessary submissions to the National Executive Council for decisions on the distribution of project benefits.
These would include infrastructure development grants, business development grants, equity participation and other government policy-based benefits for the two provinces and their landowners.
He reaffirmed the Government’s policy intention that 40 per cent of the State’s project equity participation be allocated to provincial governments and landowners, with the remaining 60 per cent retained nationally for redistribution through the national budget.
“Under our Government’s policy, 40 per cent of the State’s equity participation must flow back to the provinces and landowners where resources are developed.
“In the case of Papua LNG, we are working within the State’s 22.5 per cent equity participation to ensure that our resource owners and provincial governments receive their rightful share,” he said.
The Prime Minister said Cabinet would also consider infrastructure tax credit projects extending beyond the immediate project footprint to benefit communities throughout Gulf and Central provinces, including neighbouring areas.
He said the Government would work with provincial authorities to confirm customary landowners, pipeline interests and other legitimate project beneficiaries to ensure transparent and equitable distribution of benefits.
“Our commitment is that no rightful landowner or beneficiary will be left behind. Those entitled to royalties, equity, levies, infrastructure development grants, business development grants, contracts and other economic opportunities must be properly identified and included,” he said.
GOVERNMENT MOVES TO SECURE PROJECT FINANCING AND LEGISLATIVE SUPPORT
Prime Minister Marape further announced that Cabinet had approved a petroleum financing plan to support the State’s participation in Papua LNG, including capital raising for its 22.5 per cent equity interest.
He said financing would be pursued through domestic and international sources.
“Cabinet has approved our petroleum financing plan. We are now mobilising the financing arrangements required for the State to participate in this major project. All systems are go,” he said.
The Prime Minister also confirmed that the Government would bring legislative and regulatory amendments before Parliament next week to provide legal certainty for Papua LNG and associated PNG LNG transactions.
“These amendments will ensure that the agreements we have entered into are properly protected in law, giving confidence to our investors, financiers, provincial governments and landowners,” he said.
PNG READY TO DELIVER ANOTHER WORLD-CLASS LNG PROJECT
Prime Minister Marape described Papua LNG as a US$14.5 billion investment that would generate major economic activity, employment, business opportunities and infrastructure development over the coming years.
He said Papua New Guinea had already demonstrated its ability to deliver world-class petroleum projects through the development of PNG LNG.
“We have done this before. We have the experience, the institutions and the people to deliver another world-class LNG project.
“Our investors and financiers can be assured that Papua New Guinea is committed to honouring its agreements, maintaining a stable investment environment and ensuring that our people share meaningfully in the benefits,” he said.
He reaffirmed the Government’s commitment to achieving FID by 15 December 2026, describing the latest agreement as another important step towards that objective.
“The State has a binding agreement with TotalEnergies, ExxonMobil and our other development partners, including Kumul Petroleum Holdings Limited and Mineral Resources Development Company, as we work towards Final Investment Decision.
“This agreement between Gulf and Central is another important box ticked. We are moving forward together,” Prime Minister Marape said.
NO LANDOWNER OR COMMUNITY WILL BE LEFT BEHIND
Prime Minister Marape concluded by thanking all provincial leaders, landowner groups, facilitators, government agencies and development partners who contributed to the successful negotiations.
“My Government looks forward to continuing our partnership with Gulf and Central provincial governments and all our landowners.
“We will ensure that those entitled to royalties, equity, development grants, levies, contracts and other benefits are included in the work ahead.
“Papua LNG must not only be a major investment for Papua New Guinea. It must become a lasting source of opportunity, development and prosperity for our people. “We will leave no one behind,” Prime Minister Marape said.