NEWLY-formed Petromin PNG will conduct an independent study into one of two liquefied natural gas (LNG) projects because the State does not have ownership in the venture, Petromin managing director Joshua Kalinoe said.
Industry sources were surprised by the announcement because the National Government had an automatic right under legislation to acquire a 22.5% stake in any significant oil or gas discovery.
They said this requirement affected both LNG project proponents, one led by ExxonMobil that includes Oil Search and Santos Ltd, and the second, led by InterOil, which owns the Napa Napa oil refinery.
It is understood Mr Kalinoe was referring to the InterOil project, which was exploring its Elk gas discovery in Gulf province as the basis for piped natural gas supply to its planned LNG plant.
Sources said it was normal for the Government to exercise its equity right prior to any development taking place and had yet to do so for gas for the ExxonMobil or InterOil projects.