A WHOLLY-owned State entity, Petromin PNG Holdings Ltd, has been confirmed the State nominee to participate in the second liquefied natural gas (LNG) project being developed by InterOil Corp.
And the National Government’s equity in this project is 22.5% in the upstream, made up of 20.5% to Petromin and 2% for project landowners.
In addition, State has been offered a further 22.5% in the LNG Project.
Prime Minister Sir Michael Somare made this known in a statement yesterday following the National Executive Council (NEC) approval of the project agreement.
Petromin would participate in the upstream and midstream components of the project.
Petromin managing director Joshua Kalinoe, while welcoming the endorsement of Petromin, said the company had started discussions with potential strategic partners to fund its 20.5% equity participation.
“The approval of the LNG project agreement by Cabinet has given us the confidence to complete these discussions and move forward with certainty in the project implementation process,” Mr Kalinoe said.
As at August this year Petromin had so far contributed US$8.4 million (K23 million) in part towards its 20.5% interest in the development of the Elk/Antelope upstream project.
Earlier in the March quarter it contributed US$3.4 million (K9.3 million) and then US$1 million (K3 million) in the June quarter but had much earlier made initial deposits.
According to InterOil all funds received were being treated as deposits until a petroleum development licence (PDL) was granted.