Act’s amendment aims to give comfort to financiers, sponsors: Kua

National

AN amendment to the Oil and Gas Act passed in Parliament last Friday aims to “give comfort to financiers and sponsors” of the Papua LNG, says Petroleum Minister Kerenga Kua.
He tabled the Oil and Gas (Papua LNG Project) Amendment Bill 2021 which was approved by Parliament in line with the terms of the Papua LNG Project gas agreement.
Kua said the passage of the bill demonstrated to the sponsors, LNG buyers and financiers the State’s commitment to the Papua LNG Project, contract sanctity and the fiscal/regulatory regime contemplated by the Papua LNG Project gas agreement.
“The Oil and Gas (Papua LNG Project) Amendment Bill 2021 concerns only the Papua LNG Project gas agreement and any application for a petroleum development license for the Papua LNG Project – not any other gas agreement or project or petroleum development licence,” he said.
“The Papua LNG Project participants are currently progressing the technical rework necessary so that the two Papua LNG Project liquefaction trains may proceed within the PNG LNG project’s site at Caution Bay independently of the former third train.
“Once this is completed, and following the start of Feed (front end engineering design), they will submit an application for a petroleum development licence. In addition, given the significant capital intensity of the Papua LNG Project it must be financed using a combination of debt from lenders and equity from the project’s sponsor.”
France operator Total and partners are expected to invest about US$13 billion (K44.8 billion) initially.