THE Government has moved to clarify concerns surrounding the marketing arrangements of the Papua LNG project, stressing that existing agreements remain unchanged and claims of potential revenue losses are misleading.
Minister for Petroleum Jimmy Maladina said recent public commentary suggesting Papua New Guinea could lose billions of dollars is “incorrect” and does not reflect the legal and commercial framework already agreed upon.
The Minister explained that the Papua LNG Gas Agreement, signed in 2019 under former Prime Minister Peter O’Neill, established a joint marketing arrangement between TotalEnergies and the State’s nominee, Kumul Petroleum Holdings Limited (KPHL).
“We are not changing anything. We are executing what the State already agreed to in 2019,” Maladina said.
He emphasized that joint marketing is a binding contractual obligation and a key component of the project’s structure, particularly in relation to financing arrangements. Under the agreement, TotalEnergies plays a role in supporting the State’s equity funding, making the marketing structure essential to project delivery.
“Joint marketing is a condition of the Gas Agreement. It underpins financing and project delivery. You cannot pick and choose which parts to follow,” he said.
Maladina dismissed claims that the State could lose up to US$2 billion, describing them as unsubstantiated and lacking credible financial analysis. He clarified that joint marketing does not affect resource ownership or reduce the State’s revenue share.
“The State retains its full equity entitlement. We market jointly and earn based on our equity. That does not change,” he said, adding that KPHL will have board representation in the joint marketing venture to ensure oversight.
The Government noted that joint marketing is standard practice in global LNG projects, helping secure access to established markets, improving bankability, and ensuring stable long-term revenues.
It also reaffirmed its commitment to strengthening KPHL within the framework of existing agreements, warning that any deviation could expose the country to legal, financial, and reputational risks.
The statement comes as the Government, under Prime Minister James Marape, continues to implement agreements signed by previous administrations while maintaining investor confidence.
Authorities have urged stakeholders and the public to rely on verified information when discussing strategic national projects such as Papua LNG.