Signing does not sanction project to start, says state solicitor

By JEFFREY ELAPA
LEGAL clearance has been given by the state solicitor for the Total Papua liquefied natural gas agreement to proceed but its signing does not sanction the project to start.
State solicitor Daniel Rovagarea advised the governor-general that his office had noted the National Executive Council approved the gas agreement reviewed and negotiated by the state negotiating team and Total.
The state solicitor stated that the gas agreement negotiated did not sanction the start until the project joint venture had obtained necessary regulatory authorisation and approvals, including a petroleum development licence, pipeline licence, processing facility licences, environmental permit, foreign entity certifications and foreign exchange, tax and related approvals.
It also required complete landowner beneficiary identification studies and project benefit-sharing agreement settlement.
“I have noted that the terms of the gas agreement as initial and advise that the terms herein, in particular physical term, reflect the discussed position of the State. I have noted the NEC decision and advise that this letter is to advise you to execute the gas agreement at your convenience.”
While the gas agreement was signed yesterday and that now gives the partners the right to take the agreement to the financial market to source financing, some critical documents as required by the Oil and Gas Act have yet to be complied with by Total. A copy of the letter written by the Secretary of the Department of Petroleum Lohial Nuau to the Chief Secretary Isaac Lupari dated March 27 stated that Total, the developer of the Papuan LNG, had not submitted documents that would qualify them to apply for a petroleum development licence.
Nuau stated that since the Department of Petroleum had not received documents, he advised Total, as required by the Oil and Gas Act 1998, to apply for required permits and provide the department with the supporting documentation.