Govt signs agreement to start second LNG project

THE joint venture partners of the Papua LNG joint venture have reached an understanding with the Government on the development of the country’s second LNG project in Gulf.
Prime Minister Peter O’Neill said the signing of a memorandum of understanding between the Government and Total, Oil Search and ExxonMobil was the beginning of negotiations for a gas agreement and for the project to get off the ground.
“The 2nd LNG project will create thousands of jobs and bring benefit to the country,” he said.
“The signing paves the way for us to enter into negotiations for a Gas Agreement, which will be negotiated between the parties and to be concluded by March 21 (next year).
“It is about the fiscal terms which will guide us into developing the project agreement and the commitments that the State and project participants are making to each other about how we want to shape and structure the project.”
He said the Government would work with participants in developing the second LNG.
“We have always wanted a fair share of the benefits out of any projects in the country and with I think this particular project, we will find that Papua New Guinea will benefit greatly.
“We thank Total and the partners Oil Search and ExxonMobil for their understanding of our desire to develop a domestic market particularly in the petro chemical industry. Oil Search managing director Peter Botten said the Papua LNG memorandum of understanding provided the framework for key terms and conditions to be included with the Gas Agreement. They include tax rates and domestic market obligation.
Total chairman and chief executivePatrick Pouyanne said they spent some time to discuss the benefits of the project.