PRIME Minister James Marape has officially launched the Papua LNG Project Benefit Sharing Process, calling on all stakeholders to work together in a transparent, inclusive and orderly manner to ensure the project delivers lasting benefits for landowners, affected provinces and the nation.
Speaking at the opening of the process in Port Moresby, Prime Minister Marape said the consultations marked a major milestone as Papua New Guinea moved closer to the project’s Final Investment Decision (FID), which the Government is targeting for later this year.
He said the process would bring together the National Government, provincial governments, district and local-level governments, landowners and project partners to ensure every legitimate stakeholder had the opportunity to be heard.
“This process must be fair, transparent and inclusive. Every rightful beneficiary must have a place at the table, and no genuine issue should be left unheard,” Prime Minister Marape said.
The Prime Minister said the benefit-sharing process was a critical milestone that had to be completed before the Papua LNG Project could proceed to Final Investment Decision.
He said reaching agreement among all legitimate stakeholders would provide the certainty required by the project partners to move into the construction phase.
“This process is one of the final and most important steps before FID. Once we complete it successfully, we will give investors the confidence to proceed and unlock one of the largest resource investments in our country’s history.”
Prime Minister Marape acknowledged Petroleum Minister Hon. Jimmy Maladina for leading the process, together with the Department of Petroleum and Energy, Kumul Petroleum Holdings Limited, Mineral Resources
Development Company (MRDC), provincial leaders from Gulf and Central provinces, landowner representatives and project partners ExxonMobil, TotalEnergies and Santos.
He said his Government was drawing on the experience gained during the PNG LNG benefit-sharing process, one of the most complex landowner mobilisation exercises ever undertaken in Papua New Guinea.
Prime Minister Marape recalled that the PNG LNG negotiations brought together more than 60,000 landowners across upstream, midstream and downstream project areas before agreement was reached to enable the project to proceed.
“No Prime Minister understands this process better than I do because I was directly involved in the PNG LNG negotiations from the beginning.
“We understand the complexity of balancing the aspirations of landowners, provincial governments, investors and the National Government, and we know the importance of getting this process right.”
Prime Minister Marape assured landowners from Gulf and Central provinces that their legal entitlements were already protected under existing laws and agreements, and said the consultation process would ensure those entitlements were properly identified and implemented.
He reaffirmed the Pangu Pati Government’s policy that 40 per cent of the State’s equity participation in future resource projects would be passed directly to project provinces and landowners.
“For Papua LNG, the State will fully exercise its 22.5 per cent equity option and, consistent with our policy, 40 per cent of that equity will be returned to the affected provinces and landowners.
“This represents an even stronger commitment than previous resource projects and reflects our determination to ensure greater participation by our people.”
Prime Minister Marape urged all stakeholders to approach the discussions in the spirit of national unity, saying Papua LNG was a project of national significance that required cooperation from all parties.
He reminded participants that Papua New Guinea was competing with other major gas-producing countries for global investment and could not afford unnecessary delays.
“The global energy market has changed significantly. Papua LNG is competing with much larger gas developments around the world.
“We must seize this opportunity while market conditions are favourable. If we miss this window, we cannot assume another one will come quickly.”
The Prime Minister acknowledged TotalEnergies Chairman and Chief Executive Officer Patrick Pouyanné and ExxonMobil Chairman and Chief Executive Officer Darren Woods for their continued commitment to Papua New Guinea. He said the project had overcome major challenges, including the COVID-19 pandemic, rising global construction costs and extensive project redesign, and was now moving steadily towards Final Investment Decision.
He said the Government had honoured the 2019 Gas Agreement while working closely with the project partners to improve the commercial viability of the development without compromising the State’s interests.
Prime Minister Marape said the greatest benefits of Papua LNG would extend well beyond direct financial returns to landowners.
“The true legacy of this project will be better roads, schools, hospitals, jobs, business opportunities and a stronger economy for future generations.
“We are planting a tree today whose shade may be enjoyed more by our children and grandchildren than by ourselves. That is the responsibility of leadership.
“Let us work together, complete this process successfully, achieve Final Investment Decision later this year and deliver Papua LNG for the benefit of all Papua New Guineans.”