PM wants LNG deal before Apec


Prime Minister Peter O’Neill wants discussions on the Papua LNG Project concluded before global bankers arrive for the Asia-Pacific Economic Cooperation summit in November.
He said in a statement to Parliament last week: “Over the next few years, we will be advancing key projects that include the expansion of our current LNG project.
“For P’nyang (Western), as indicated, there are increased levels of reserves in the wells that they have explored. Now, the LNG partners are in the final stages of delivering that and we are in the final stages of delivering fiscal terms that are going to be given to these companies to develop this resource.
“We are now well advanced in discussion of the Papua LNG project.
“We want to conclude the fiscal terms before November this year so that we have a clear direction.
“It is a good opportunity to do that because most of the global banks and financial institutions are going to be attending the chief executive officers’ summit in November during the Apec meeting.
“We are trying to take advantage of that by making sure that we did in the first LNG, where we went and raised close to US$19 billion (K61bil) so that we can fund this project.
“It is important that when the bankers are present in our country we expose the opportunities in the second LNG and the expansion of the first LNG.
“We will also have good discussions around the Wafi-Golpu mining project.” Meanwhile, a State negotiating team led by chief secretary Isaac Lupari expects to conclude negotiations on three gas fields soon and enter into final investment decisions (FID) by early 2020.
They include Pasca A in Gulf (Twinza Oil), P’nyang (ExxonMobil) and Elk/Antelope in Gulf (Total SA) which are approaching project development.
Lupari said two projects, PASCA A in Gulf and P’nyang in Western, had submitted their application for petroleum development licence.
He said Total was expected to submit its application next month.
The team would prepare and enter into negotiations with each of the project development proposers and establish a gas agreement for each of the projects.
LNG expert and Facts Global Energy chairman Dr Fereidun Fersharaki had indicated there was a window of opportunity to enter into FID (for financial close) with the operators by the end next year or early 2020.