Prime Minister James Marape has led a high-level government delegation to Kikori in Gulf Province to inspect the proposed venue for the Papua LNG Development Forum and assess preparations for project-related activities ahead of the forum expected next month.
The delegation included Gulf Governor Chris Haiveta, Petroleum Minister Jimmy Maladina and Finance Minister Thomas Opa.
The visit focused on consultations with provincial leaders, landowners and key stakeholders on arrangements for the Development Forum, a key step in progressing the Papua LNG Project.
Mr. Marape said in a statement that the visit would provide government leaders with a firsthand understanding of the proposed forum site and surrounding infrastructure requirements while allowing direct engagement with Gulf Province leaders and landowners on preparations for the forum.
The Prime Minister said the Papua LNG Project remains one of Papua New Guinea’s most significant economic development opportunities and that broad stakeholder participation was essential to ensure a common understanding of the project and its future benefits.
“We’re heading out to Kikori to discuss the Development Forum with the Gulf leadership. We’ll take advice from the Gulf leadership as to what to do as we begin discussions in Kikori,” Mr Marape said.
Prime Minister Marape said the Papua LNG Project remains one of Papua New Guinea’s most important economic development opportunities and a key component of the country’s long-term economic growth strategy.
He said that if the Papua LNG Project reaches its Final Investment Decision (FID), it will trigger a continuous chain of energy project construction and development across the country over the next decade and beyond.
According to the Prime Minister, several major oil and gas projects are lined up over the next 10 to 20 years, including Papua LNG, P’nyang, Pasca A and other future petroleum developments.
“These projects will provide long-term construction activity, production opportunities, employment and revenue for Papua New Guinea.
“We’re looking at the next 10 to 15 years as a period of sustained energy sector activity, not only in construction but also in long-term production and economic growth.”
Prime Minister Marape said Papua New Guinea’s economy continues to be supported by major resource developments, particularly in the oil and gas sector, while agriculture and other non-resource sectors continue to contribute strongly to economic growth.
He noted that the non-mining and petroleum sector has recorded growth of approximately four percent, led largely by the agriculture sector where the majority of Papua New Guineans continue to earn their livelihoods.
The Prime Minister said his government remains committed to ensuring that resource development delivers greater benefits to the people of Papua New Guinea and that future projects create opportunities for local businesses, landowners and impacted communities.
“Our government is predominantly known for the principle that we are fighting to take back more benefits for our country. This Pangu Administration has made it absolutely clear that we will not compromise on ensuring the State secures around or above 55 percent of the total benefit from our major resource projects.
“There can be no clearer example than the New Porgera Limited Agreement.
“The resource sector industry knows very well our vision and where we want to take the country. We want to secure above 55 percent as the total stake for the State.
“I want to thank all resource developers, investors and partners for understanding our position. This is being achieved within our existing laws and through good, amicable negotiations that benefit all stakeholders.”
Prime Minister Marape said while his government may not have solved all of the country’s socio-economic challenges during the past seven years, it has remained focused on growing the economy, increasing national participation in resource projects and ensuring Papua New Guinea receives a greater share of the benefits from its natural resources.
He said projects such as Papua LNG in Gulf Province and the Wafi-Golpu project in Morobe Province would generate additional revenue, strengthen foreign exchange reserves and create long-term economic opportunities for Papua New Guineans.
“We get Papua LNG and Wafi-Golpu online and get more revenue into the country and ensure our foreign reserves improve for the Government, landowners and developers.”
Prime Minister Marape also highlighted ongoing petroleum exploration activities, revealing that a deep-water drilling vessel is expected to commence exploration activities in waters between Central Province and the Western Province maritime area.
He said Papua New Guinea continues to be viewed internationally as a stable and reliable destination for oil and gas investment.
“Since 1990 we have exported oil, and since 2014 we have exported LNG. We have never had one cargo disrupted.
“PNG has maintained a strong reputation as a dependable energy producer.
“You have wars and conflicts in other parts of the world, but PNG’s Kumul Marine Terminal in Gulf Province has not missed an export shipment since 1990, and the PNG LNG export facility has maintained uninterrupted exports since 2014.
“That is a reputation we should be proud of. PNG continues to tell the world that we are a safe, stable and dependable place for oil and gas business.”
Prime Minister Marape recently met with TotalEnergies Chairman and Chief Executive Officer Patrick Pouyanné in Paris, where discussions focused on Papua LNG and future oil and gas investment opportunities in Papua New Guinea.
“I asked Total CEO Mr. Pouyanné about their commitment to more oil and gas investment in PNG, and he assured me of their continued support and confidence in our country.”
The Papua LNG Project remains one of the Government’s highest development priorities and is currently being progressed by the State Team in partnership with TotalEnergies and joint venture partners.
The Development Forum, a mandatory process under the Oil and Gas Act 1998, is expected to bring together landowners, provincial governments and the State to discuss benefit-sharing arrangements and project implementation issues ahead of future project milestones.
Prime Minister Marape reaffirmed the Government’s commitment to working closely with landowners, provincial governments, investors and development partners to ensure Papua LNG delivers lasting benefits for the people of Papua New Guinea.