PM outlines govt intention

PRIME Minister James Marape yesterday called on ExxonMobil and Oil Search not to hold the Total LNG project in Gulf to ransom.
He moved to inform the nation and stakeholders what happens after the stalemate between the State Negotiating Team (SNT) and ExxonMobil over the P’nyang LNG Project.
“I call upon these two multi-nationals to work with Total to deliver Papua LNG,” the Prime Minister said.
“You are beneficiaries of concessions previous governments have given.
“If you model the project to be uneconomical, then don’t push it: let’s leave the gas in my land and you develop Papua plus further work in PNG LNG.
“After SNT and ExxonMobil present to the MGC, Cabinet will decide on P’nyang.
“We will shift focus to Wafi-Golpu and Porgera mines, Pascal LNG plus other resources sectors so life in PNG is not only dependent on P’nyang and other LNG projects.
“It is no secret that I am not pleased with the lack of interest shown by ExxonMobil to migrate towards a mid-point.
“A mid-point in which the State takes home a better deal instead of terms similar to concession-based gas agreements Papua New Guinea has signed with ExxonMobil and partners of PNG LNG, and Total and partners of Papua LNG.
“I am satisfied that our SNT has subscribed to the mandate bestowed upon Petroleum and Energy Minister Kerenga Kua.
“ExxonMobil has been told what our intentions are.
“In the interests of fairness, a Ministerial Gas Committee (MGC) will request both the SNT and ExxonMobil to present their positions for the State – through a committee of leaders – to decide what the best outcome is for PNG.”
Marape said he had indicated on all levels of discussions that fundamental policy principles that influenced his Government’s mindset would not change.
“These include no fiscal concessions in P’nyang, treating P’nyang as separate from both PNG and Papua LNG projects, increase in domestic market obligations and local content participation,” he said.
“These will be fundamental in progressing P’nyang.
Marape assured the nation that mining and petroleum ministerwould bring in reforms to the Mining and Oil and Gas Acts through enabling Organic Laws this year.