By SEPKOLIN WALNE
Opposition Leader James Nomane has raised concerns about the timing of the Final Investment Decision (FID) for the multi-billion-kina Papua LNG Project in Gulf Province.
Mr Nomane told Parliament that since 2019, the Government had been saying that the FID would be made in 2020, then 2022, but six years later there was still no decision.
He asked if Petroleum Minister Jimmy Maladina could tell Parliament and the country when the FID was be made.
“What are the hurdles that are preventing us from expediting those processes?” Mr Nomane asked.
“What is the status of business development grounds that were given to the people of the Gulf and Central?”
Minister Maladina said that he and the State Negotiating Team held discussions recently about the progress of the Papua LNG Project and timing of the Final Investment Decision with the project operator, Total Energies.
He said the discussions addressed a request for targeted incentives support from the State, which reflected higher than anticipated capital costs, as well as related concerns about the project’s economic resilience at oil prices falling below current long-term forecasts.
He added that the State was carefully considering this request with a clear focus on value protection and recovery.
“Any concession under consideration will be structured to ensure it is recovered over time through enhanced state returns under stronger price conditions. This includes mechanisms tied to agreed upside price scenarios, where the State secures additional revenue streams once prices exceed baseline projections,” Mr Maladina said.
“A decision to proceed with the project is expected to be made by the joint venture within the next six months.
“If sanctioned, the Papua LNG Project will deliver substantial direct and indirect economic benefits and is set to be the largest single investment undertaken in Papua New Guinea.”
The Petroleum Minister assured Parliament that the Government was dedicated to resolving the issue and actively working to secure the FID this year.