Kua: Walking away was best

The National Business

By SHIRLEY MAULUDU
PETROLEUM and Energy Minister Kerenga Kua says the decision to walk away from a deal regarding the P’nyang gas project in Western was made in the “best interest of the country and people”.
The minister, in an interview with The National yesterday, said since Friday, which was the deadline for discussions, he had been getting positive comments from leaders and the public on the decision the State, through the state negotiating team, had made. “Since negotiations collapsed on Friday, a majority of the people, and the leaders that I have spoken to, are clapping their hands,” he said.
“They are happy.
“They say this is the single most positive thing that has ever happened to this country.
“They are very happy about the fact that there is no deal because they are fed up of not receiving a fair share.
“They are clapping their hands because the state negotiating team has done the right thing in asking for what is fair.
“The resource in the ground has been there for millions of years so it can stay in the ground for another few years, it’s not a problem.
“We won’t do a deal in P’nyang but other deals will still go ahead.
“We will still raise revenue in other areas to develop our country.
“P’nyang is not the only place that has development potential for us.
“We are a developing nation.
“We need money for all kinds of things that needs to be developed and we have to make it in this resource, an available resource.
“But if our partners refuse to give us a fair share, we will not be able to deliver up to the people’s expectations.”
Meanwhile, Kua further explained the licence that ExxonMobil had for the development of the project.
“The State does acknowledge that Exxon has some residual rights to the petroleum retention licence,” he said.
“They have in accordance with our law, filed an application for a development licence.
“What they have is a retention licence.
“Our law says that before that licence expires, you can apply for a development licence and if you do so, your rights under the retention licence continue even though it had already expired until your application for development licence is fully decided by the petroleum development board.
“That’s the reason why, we were able to do the negotiations.”

20 comments

  • Finally, Keranga Kua has waken up. He was part of the initial PNGLNG Agreement as a legal advisor.

  • Well done Minister. The best thing yet to be done is to amend the Oil and Gas Act… and increase the equity holdings, not only for the state but for the landowners as well. This will truly address the Take Back PNG campaign by PMJM.

  • This is the best decision by Government. Minister Kua thank you for your leadership. The people of PNG must always come first in such decisions. Its never too late to look at other investors.
    Enough of colonialist minded investors.

  • Lets not fall easily into the corns of the developers! Lets protect our state’s integrity and uphold our regulations and laws regarding resources development and benefit agreements! It then defines our true sovereignty.

  • Leader thank you for protecting the landowners interest and the country’s interest. For far too long we been at the mercy if this big bullies from USA and other superpowers.

  • Gut’pla, that is what negotiation is all about. If you are not satisfied, walk away, there is plenty of tomorrow to sit down, and talk and talk until you compromise for the better of you both…50/50 or 60/40 developer/PNG respectively is in my opinion a fair deal.

  • Thank you Minister Kua, you have set history in protecting future generations
    of Papua New Guinea. Also the leaders
    of Western Province, I congratulate you
    for your bold decisions, Hon Governor
    Ati Wabiro and Hon Donald, Member for North Fly. You have put your people as
    Priority, the Province and our Country
    Papua New Guinea.

  • Well done minister, we have to do the same with Porgera mining while reviewing the license which expired last year and also other new and existing oil/gas or mining projects within the country.

  • Thats good decision Minister KK.Congrats! Let us not allow foreigners to dictate our resources.
    Why the country of Iraq always fighting??..well becoz of their resources so lets defend our resources as much as possible.

    10Q

  • Its time..Its time..to take hold onto what belongs to us by making bold decisions. The locusts have been eating away our resources and its time to eradicate these locusts. Mr Kua has made a timely decision we all should be happy about.

  • Good move by the right thinking minister. Congrats! Putting people and its country who are the sole custodians of the resources first is paramount and any further and future discussions to be undertaken, our people must be prioritized. Well Done.

  • Congratulations to KK and the SNT. Walking away from an unreasonable deal was the best deal. These resources have been there for millions of years and we can wait. I can assure you Minister, they will come back with a better offer. Just stand your ground

  • Its time minimum equity participation is legislated. There will always be another better developer than Exxon Mobile. Don’t give in Minister and the State Team. well done.

  • About time we start thinking of the future generations. Of our children’s children.
    About time someone stood up to companies who bully their way around small developing nations.
    Like you said its been there for millions of years so a few more years more would not hurt.

  • It is typical for Exxon Mobil to maintain control within where ever it operates. It follows the nation of its origin, who tends to aspire to have global economic control. If Exxon Mobil gives an equal share to the Nation of Papua New Guinea, it would mean loss of control.

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