Minister welcomes court’s decision

 By GYNNIE KERO

Petroleum and Energy Minister Nixon Duban  (pictured)on behalf of the Government has welcomed the outcome of arbitration on PRL-15 and takes note that Total has a valid participation in the PRL- 15 joint-venture.

Duban hoped that this result cleared the way for significant progress on the development of Elk and Antelope discoveries for the benefit of all stakeholders, in particular the State of Papua New Guinea and local authorities.

 He looked forward for Total to be appointed operator in PRL-15 and the Joint-Venture deliver the project.

National Petroleum Company PNG managing director Wapu Sonk said “as a neutral partner and we welcome this decision and would have welcomed the decision if it went the other way too.”

He had told The National that: “As the state nominee NPCP will play a role in working with all the partners to encourage the acceleration of resource development in an economical manner.

“NPCP will take out a 22.5 per cent stake in the second LNG project.”

The Elk/ Antelope project cost is estimated at around US$15-US$20 billion (K39-52bn), almost equivalent to the cost of the PNG LNG project.

Work on the project is expected to start in 2016 and first LNG export expected in 2020.

Duban earlier said: “We (state) would then expect Total and its partners to finalise front- end engineering and design in 2015-2016 and for the final go ahead for construction to be given in 2016.”

The multi- billion dollar project was expected to employ more than 10,000 people during the construction phase.