Govt must step in to end stop-work

I REFER to the landowner intervention to shut down early works on the PNG LNG project undertaken by Esso Highlands, the subsidiary of ExxonMobil.
It is obvious that the government and the developer of the LNG project have mishandled sensitive landowner issues from the start and the stop-work is not a surprise.
It is a slap in the face of the landowners when Esso Highlands’ recognised umbrella company formed by outsiders (non-wellhead) called Hides Gas Development Corporation (HGDC) is allowed to farm out EPC contracts.
Why was this middleman company created and for whose benefit?
It has now come to a crisis situation.
The government must intervene and localise (as opposed to nationalisation) the company for the interest of the project.
It has to undertake urgent due diligence on the liabilities and pay off the market value of HGDC and restructure the shareholding for the nominated wellheads licence areas.
Also, any contract farmed out to foreign companies has to be undertaken on joint venture basis with the umbrella landowner companies.
If this is carried out, the LNG project will sail home calmly.

Kila Mali
Port Moresby