Kua: Encouraging more resource projects in mines will help with debts

By PETER ESILA
PETROLEUM and Energy Minister Kerenga Kua says encouraging more resource projects in the extractive industry will help Papua New Guinea deal with its large debts.
Kua told Parliament last week that with the debt level as stated by Treasurer Ian Ling-Stuckey as being at K37 billion, more projects needed to be brought on line.
“We need to bring on more projects on stream because as you can hear from the treasurer, PNG has already been sold out and is in a deep hole,” he said.
Kua said when giving an update on the progress of the Pasca gas reserves offshore Gulf to be developed by Twinza.
“We need every business we can encourage to take off and we will be looking at the particular project very shortly, they are doing the paper work and as soon as they are ready, we will dispatch a State negotiating team to sit down with them and talk thorough the details of the project,” he said.
“We need new projects to bring ourselves out of that hole, so I will be looking for the support of this Parliament as we stand out together, through this very sensitive period.”
Kua said once Pasca was commercialised it would generate US$400 million (K1.36bil) annually over its 20-year expected lifespan.
“By our PNG standards, that is a good enough business to encourage to take off, even with that US$400 million, we can use it to do something about it (debts).
“We are expecting to establish a State negotiating team to engage with the holders of the retention licence Twinza, to see whether we can agree to the terms of the commercialisation. In P’nyang, you will note that the State has signalled the kind of expectation it now has on behalf of the people of PNG and that position is pretty well known by other licence holders like the holders of the retention licence like in Pasca.
“They are saying that they are aware of what the State is up to and they are still happy to talk.
“That is an encouraging general position.”