PRIME Minister Sir Michael Somare has congratulated InterOil and Mitsui Corp for entering into a preliminary commitment agreement (PCA) to develop phase one of the Elk/Antelope LNG project.
Sir Michael Somare said: “With these Japanese partnerships that we, as a country, are establishing, I will be happy to eventually leave politics with the knowledge that this Government has enabled PNG to take positive steps towards a secure and prosperous future.”
Sir Michael witnessed the signing ceremony in Tokyo of the deals between InterOil and Mitsui last Tuesday.
InterOil is the upstream operator for the Elk/Antelope LNG project and Mitsui is one of the leading Japanese investment and trading companies.
This follows the HOA (heads of agreement) that was signed in Papua New Guinea last Dec 23, between InterOil and Mitsui, where the PNG Government ensured support to Mitsui.
The PCA allow Mitsui to fund 100% of the cost of the condensate stripping facilities (CSF) which include a liquid separation plant and pipeline in the project area.
Sir Michael said, under the arrangements, “project financing to be provided by Mitsui will also fund the State’s share of the condensate extraction costs”.
The condensate will be sold on a net back basis to the InterOil refinery in Port Moresby at international market and local PNG market prices.
The condensate stripping project agreement is the first step in bringing additional revenue and benefits to the people of Papua New Guinea from the InterOil-led Liquid Niugini Gas LNG project.