Marape hails outcome of talks

Business

PRIME Minister James Marape has described the outcome of negotiations for development of the Pasca offshore petroleum project in Gulf as “significant for the country”.
In announcing the outcome of negotiations for development of the country’s first offshore development project yesterday, Marape said under the terms agreed, the State would achieve 61- 65 per cent of economic benefits.
Other benefits, he said, included:

  • Early revenue;
  • Provincial and direct economic benefits through a two per cent development levy and royalties of two per cent of gross revenue;
  • Access to LPG (liquefied petroleum gas) discounted by 30 per cent for national consumption at five per cent, guaranteed; and,
  • a commitment to develop a detailed national content plan within 6-12 months of signing of the gas agreement.

Marape said other key features of negotiated terms also included:

  • Fixed revenue to the State through agreed taxation arrangements;
  • Back-in-rights at 25 per cent at the time the fixed investment decision (FID) is made, or earlier if agreed;
  • Third party access as required by law to facilitate future discoveries;
  • Aggregation by the operator if new fields are discovered, which will enjoy the same fiscal terms under the terms of the gas agreement; and,
  • incentives for the operator to conduct more drilling within the licensed Pasca A area.

“Following intensive negotiations between the state negotiation team (SNT) and Twinza Oil Ltd, a principle agreement has been reached to move forward with developing a new offshore processing site in the Gulf of Papua,” Marape said.
He said the agreed terms were consistent with Government’s negotiation parameters and would lead to significant long-term economic benefits for the nation.
“The terms agreed reflect the substantial technical work carried out by the Department of Petroleum and Energy, Twinza Oil Ltd and the state negotiating team, leading to the best possible deal for the people of our nation,” he said.
“This is a significant outcome for Papua New Guinea.
“It reflects the Government’s commitment to deliver a better and fairer share for the people of our country.
“The project will deliver immediate economic benefits on production, downstream processing capability and domestic market access, and real local content to benefit and empower Papua New Guinean workers.
“This outcome demonstrates the value of firm negotiations and partnership in seeking to deliver the best deal for both the state and the operator.”

22 comments

  • This is the kind of thing we want. Project benefits entire nation rather than individuals or few. We support people who think and act for the future generations is to come. I personally think Marape Stephen government is on right track.

  • This is what can happen when you have a developer that is genuinely willing to negotiate in good faith. A good precedence set for future projects. Well done!

  • Great work PM Marape. Well done. You have shown great courage with heart of a true PNG leader (who is a servant, not a “BIKMAN”) who puts the interests of his people and country first before his own. Now, we’re really taking back PNG. With persistence and COURAGE you’ve displayed in recent times on the floor of Parliament defending national interests, the disadvantage and silent majority of our people back in rural communities have witnessed you and your team charting this NEW direction in project negotiations where you will leave a lasting impression of your footprints on this uncharted territory for future young generation of leaders to follow. It is sad to say that majority of past and present leaders were too scared to take this route, or they were only interested in enriching themselves resulting in PNG severely suffering from all these years of minerals and forests exploitation. If foreign investors don’t like our terms, then they are free go elsewhere and find better environment suitable to satisfy their greedy Shareholders. What’s the urgency and rush to exploit our natural resources all at once? Why can’t we leave some to be develop at later stage by future generations? PM Marape and Hon. Kerenga Kua, together with your State Negotiation Team and other like-minded leaders, PNG is proud of you. Keep that flame burning. May God bless PNG. Let’s TAKE BACK PNG!

  • Our Prime Minister understands the plight of our people. He knows our future lies in our participation of resources development. He believes that PNG can come out of poverty and into prosperity if we work in partnership with any developer who believes in sharing benefits. He has faith in our people’s resilience in times of challenge and controversy. He is committed to making painful short term decisions now for the long term gain for our children and grandchildren. Our people have a dream to be prosperous and our Prime Minister Hon. James Marape will help navigate our ship through stormy seas to achieve this dream. Actions like this and others more are the reason he wants to Take Back PNG. So let’s support his government. These are early days of his government. If the Prime Minister believes in our resilience why cant we give him a chance to contribute also to this nation’s development agendas like other Prime Ministers before him. While others keep criticizing you Prime Minister, you close the windows and continue doing what is best for our country so that we can into the future attain Financial and Economic Independence.

  • Wow. Thank you James Marape Government. 61-65% economic benefits is already a high percentage. National Content is key, and I’m glad I saw that there. The People of Papua New Guinea are our Main resources , let’s never forget that.

    Keep up the good work and God Bless Papua New Guinea.

  • Good on you Prime Minister, we as a nation through the government must be bold and not be patronized by developers through the negotiation process. We must be bold in protecting our sovereignty as a nation and should not allow ourselves to intimidated by developers in their attempt to under cut our quest for a better deal from any proposed project.

  • Excellent Prime Minister. This is the government png needs. Who has heart for the people.
    Real meaning of TAKE BACK PNG

  • This is what the people desperately wants as for every single project popping up with in, the portion of projects must be more than 50 %owned by state for the better benefit for the nation’s future generations and better development.

  • Well done SNT and all other parties at the table.. Negotiations are a must so we all walk away knowing we’ve secured ourselves to the best practicable..

  • Well Done PMJM for rescuing and taking back PNG.
    You did came up on right timing before PNG sinks to ocean floor.

  • Excellent progress and outcome PMJM! What an eye-opener fo the PNG citizens, who usually are NEVER privy to negotiations taking place in major projects of such magnitude. Well done!

  • This project has set a benchmark for future projects, including the stalled negotiations with Total.

    Congratulations to the SNT and the Marape-Steven government for fighting for more for our country.

  • Well Done PMJM, Papa graun stret ya, bai yu pilim pen na mekim long em ya yu statim nao and May the Good Lord richly bless you with more knowledge to take back PNG.

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