: Prime Minister Hon. James Marape says Papua New Guinea is entering an important period for Petroleum development, with Papua LNG progressing towards Final Investment Decision (FID) and a pipeline of other major Projects expected to sustain investment and economic activity over the coming decade.
Speaking at Government House, Konedobu, today following the swearing-in of new Vice-Ministers, Prime Minister Marape said newly-appointed Vice-Minister for Petroleum Hon. Gidron Maso Karipe would assist Petroleum Minister Hon. Jimmy Maladina as Government works with Landowners, Provincial Governments and Project Partners to progress Papua LNG. Prime Minister Marape said Papua LNG has an FID sunset date of 15 December 2026, with Government working to complete outstanding Landowner and Provincial Government processes. He said he had received strong assurances from Project Leadership on progressing the Project towards FID. “I want to thank TotalEnergies, especially the Global CEO, Mr Patrick Pouyanné, who understood that to cross the line in Papua LNG, synergy between PNG LNG and Papua LNG, and having one unified Project Operator, was important,” Prime Minister Marape said. “ExxonMobil is already operating PNG LNG. If they operate Papua LNG, then the synergy will exist. I think that has moved in a positive way. Fifteenth of December is the sunset clause to the announcement on FID.”
The Government recently outlined revised arrangements for Papua LNG, including the pathway towards the December 15 FID target and increased potential PNG Equity. Prime Minister Marape appealed to Landowners and Leaders in Gulf and Central Provinces to work constructively through remaining issues so Agreements could be progressed. “Put your country ahead. See the big picture. If you have any disagreements, then there should be a space to agree to disagree. Put it on the disagreement list. But those that are agreed upon, sign up on.” He said Papua New Guinea had experience from the PNG LNG Development that could help guide negotiations while recognising that Papua LNG had its own circumstances. “The precedent, the structure, the template and the ratio are already there in PNG LNG. “Sometimes human greed suffocates what is good for all of us. Let’s not allow greed to suffocate what is good for all of us, individual or collective. Let’s see the big picture for our country.”
Prime Minister Marape said the Project was being advanced at a time of global economic, financing and geopolitical uncertainty, making it important for PNG to secure investment while international capital was available. He said Government wanted Agreements with Landowners and Provinces substantially progressed before November to give the Project Partners the confidence to proceed towards FID and Financing. Prime Minister Marape said the revised arrangements provide PNG with an additional 2.5 per cent Equity opportunity, taking potential total PNG participation in Papua LNG to 25 per cent, alongside other improvements negotiated by the State. He said the Domestic Gas pricing formula had also been reduced from 9 per cent JCC to 5 per cent JCC, which Government expects to reduce the cost of Domestic Gas supplied for electricity generation. Prime Minister Marape also said changes to PNG LNG Royalty and Development Levy calculations would remove Capital Costs from certain deductions, providing additional benefits to eligible Landowners and Provincial Governments.
Looking beyond Papua LNG, Prime Minister Marape said Government’s objective was to sequence major Projects to maintain Investment rather than experience long gaps between construction cycles. “Exciting times are coming in the next 10 years in the LNG space. We’ve got Papua and P’nyang that will go back-to-back. “In Kina-value terms, Papua LNG is an investment at K60 billion and P’nyang LNG is an investment at K40 billion. So that’s a K100 billion Investment Programme.”
He also pointed to the Pasca Project and other Petroleum prospects, alongside major Mining developments, as part of the broader Investment pipeline. “The Oil and Gas space has excitement in the next 10 years,” Prime Minister Marape said.