MINISTER for Petroleum, Kerenga Kua in a joint media conference on Friday with the Chairman of Esso PNG P’nyang Limited and Managing Director of ExxonMobil PNG, Mr. Peter Larden, announced the parties’ intention to re-engage in the negotiations on the P’nyang gas project.
The re-engagement of negotiation will now allow the State through its State Negotiating Team (SNT) to get into a serious of dialogue with ExxonMobil with both parties intent to reach the project agreement allowing operation to begin.
The negation for the project started on the 15th of November, 2019 and ends on January, 2020 until the announcement of its re-engagement on Friday.
Minister Kua said if all goes well, parties involved can expect to sign a P’Nyang heads of agreement around the end of this month and a Gas agreement thereafter.
Minister Kua extends his gratitude to ExxonMobil for its invite to recommence the discussions.
“The project represents a very important potential source of revenue for the State as you know the State is always battling for finance to meet the demands of our people in all the developmental aspects of this country.
“A letter of intent was signed between the State and ExxonMobil to demonstrate that this time around we are serious.
“When we go to the negotiating table, we will go with a firm commitment to reach a deal. It will require a give and take on both sides,” Kua said.
Minister Kua said: “The benefits of phasing the construction of both Papua and P’nyang project over an eight year period shall be a substantial boost to the economy and the country.”
“This tremendous investment would extend our gas pipeline infrastructure into the country’s Western province and have a meaningful and lasting economic impact for Papua New Guinea and its people,” the Minister said.
Managing Director of Exxon Mobil PNG, Mr. Peter Larden said that the intent to develop the P’nyang field helps demonstrate the encouraging growth opportunities for our operations in Papua New Guinea.
“Together with our joint venture partners, we look forward to working closely with the PNG Government and the landowners to progress the P’nyang field development proposal and secure the licenses needed to develop this report,” Mr Larden said.
Negotiations for the project will start shortly with greater intention to reach project agreement and signing.
Members of the State Negotiating Team (SNT) include the Managing Director of Kumul Petroleum, Wapu Sonk, the State Solicitor, Daniel Rolpagarea, the Secretary for PMs Department, Ambassador Ivan Pomaleu, Secretary for Dept. of Petroleum, David Manau, and Augustine Manu from the MRDC.
Meanwhile, Gulf Governor, Chris Haiveta spoke on behalf of the landowner provinces of Gulf and Western in respect to development levy and equity that the calculation that are used can be reviewed and relooked so that they can apply not only intent but the letter of the law as per the Oil and Gas Act.
