The National – Tuesday, February 8, 2011
PETROMIN PNG Holdings Ltd, as the national oil, gas and minerals company, has congratulated InterOil and its joint venture partners for entering into a definitive agreement regarding the development of PNG’s second LNG project.
Petromin managing director Joshua Kalinoe said as the state nominee in the project, Petromin was looking forward to participating once a final investment decision (FID) was reached.
This would be done by acquiring the sunken cost and contributing to the development costs from the time of entry into the project.
Kalinoe said Petromin was excited by the announcement and would work closely with the gas office to facilitate the state’s entry into the project at FID.
Petromin would be a participant in the InterOil project when the state exercised its back-in right under the oil and gas act.
Under the act, the state was entitled to 22.5% direct equity where 2% was reserved for the project area landowners and would be managed by the Mineral Resource Development Co (MRDC) .
The balance of 20.5% had been assigned to Petromin as the state nominee in the project.
InterOil Ltd and its joint venture partners last week signed formal agreements on the project funding and construction agreement and a shareholders agreement among LNGL, South Pacific InterOil (SPI 208), Energy World Corporation (EWC) and Gulf Governor Havila Kavo on behalf of the Gulf people.