Mining & Petroleum
PRIME Minister James Marape has outlined the six major resource projects his government is focused on.
They are the Papua LNG Project, New Porgera Mine, Wafi-Golpu Mine, P’nyang LNG, Pasca LNG and Pandora LNG.
PM Marape announced this today when responding to the Ministerial Statement by Treasurer Hon. Ian Ling-Stuckey on the ‘2020 Final Budget Outcomes (FBO) and 2021 Mid-Year Fiscal and Economic Outlook (MYEFO) and the Way Forward’.
He said this was more than the previous O’Neill regime which had only the Papua LNG Project to its name.
“Mr O’Neill, in eight years, delivered only the Papua LNG Project,” PM Marape said.
“We are working very hard, and in just two years, we are discussing Papua to ensure that it takes off, Wafi-Golpu, New Porgera, Pandora, Pasca and P’nyang.
“These big five projects apart from Papua LNG project, remain our focus, but more importantly in the medium term going forward to ensure our economy is strong.”
PM Marape said the difference between his Government and O’Neill’s was that his Government was for a better deal for Papua New Guinea on all these projects.
He said the Papua LNG Project was not one that was supposed to have begun right away as the Opposition was claiming.
“The Papua LNG Project was not supposed to have been constructed in 2019 or 2020,” PM Marape said.
“It would have to go into pre-FEED (front end engineering and design), then FEED, and then FID (final investment decision).
“They (Opposition) are making it (Papua LNG Project) as if it was going to be a miracle that would have brought money into the country in 2019 or 2020.”
PM Marape said the Papua LNG Project was going into FEED in 2022, an FID by 2023, and construction to start in 2024 or 2025.
“I appreciate what the Petroleum Minister, Hon. Kerenga Kua, is doing now by trying to squeeze a little more in the area of local content, so that we get a bit more on top of what was already signed,” he said.
“I thank the former government, which left our gain at 51 per cent.”
PM Marape said his Government was pushing for more than 50 per cent stake in P’nyang, Pasca, Pandora and any other new LNG projects.
He said this was the same at mining projects.
“We’re trying to push for a gain at Wafi-Golpu and Porgera with a return of above 55 per cent,” PM Marape said.
“We will not come below 52 per cent.”
The Prime Minister said at Porgera, his government had settled for 53 per cent over the long term, with the first five years being 65 per cent.
“This is what we are doing, making the hard decisions,” he said.
“We have to make these tough calls to ensure that we anchor our economy correctly, not just for today but for the next generation.
“The more we collect today contributes to a better Budget three, four, five, six years down the line.”
- –Press Release –