Papua LNG will go ahead despite delay, says minister

By ZARA KANU LEBO
PETROLEUM Minister Jimmy Maladina is waiting on Papua LNG project managers to submit an update on the bidding process.
The reports will determine the progress of the final investment decision (FID) and if the project will commence in the last quarter of 2024 as per schedule.
The reports by TotalEnergies and ExxonMobil officials should indicate project tenders that were put out and if these have been completed successfully with bidders compliant to ensure work starts on time.
Maladina said he would be getting a progressive update soon from the project managers adding that while there was a possibility of a delay developers had assured him that the FID would take place.
“Last month, I met with both project managers in TotalEnergies and ExxonMobil. Developer TotalEnergies are upstream operators for the Papua LNG project and they have had bids returned as they have discovered that the bids were non-compliant,” he said.
“Hence, they have asked the bidders and that other scope of the upstream works be re-quoted and now I am waiting for a detailed response from TotalEnergies by mid this month.
“ExxonMobil as you know the project managers of the downstream plant sight, have received a good return on their works from bidders and will provide a progress update this month also.
“Both parties have been conducting regular meetings as partners and will give the Government positive feedback on the FID at end of this month.”
In a recent report on website banktrack.org, it was stated that French Bank Credit Agricole, the financial adviser to TotalEnergies would not directly finance the LNG project.
The final stage of the Papua LNG project was scheduled for end of 2023 but was postponed to first quarter of 2024 and further delayed to end of 2024 due to financing difficulties.
Maladina assured Parliament that the project would still go ahead and be financed as TotalEnergies was an international company and had other sources of funding.