STATE TO RE-NEGOTIATES PAPUA LNG AGREEMENT
By Mike Passingan
A state negotiating team (SNT) led by Minister for Petroleum Kerenga Kua left the country today (Thursday 15th August)) for Singapore to re-negotiate the terms of the Papua LNG Project previously signed on 19th April 2019.
In a statement, Mr. Kua says the Papua Gas Agreement was signed by the previous O’Neill led government in the period when serious moves were afoot to remove and replace that Government.
He says the Marape-led Government on taking office on the 30th May 2019 was of the firm view that the Agreement was disadvantageous to the State and people, in certain respects and has resolved to seek a renegotiation.
The Petroleum Minister cautions that considering what’s at stake, the peoples expectations must be guarded during this period.
He says the negotiations could work out well or or even disastrously, but either way, the people must be ready to accept whatever the outcome.
Mr. Kua says success in the discussions could lead to an early progress of the project, while failure could have very serious ramifications.
He says failure must not be ruled out and that is the risk the Government is taking as they try to move towards taking PNG back and making it wealthy.
The final outcomes of these renegotiations will be briefed to Prime Minister James Marape and the NEC by next week.
Kua says ultimately it is about seeing an increase in the revenue the Government receives on behalf of the people.
The Papua LNG project is a joint venture between Total, Exxon Mobil and Oil Search Ltd, worth $13 billion dollars or over forty billion kina.
Source | NBC News