Minister Maladina welcomes landmark Tier 1 Agreement as Government targets early November to conclude remaining benefit-sharing negotiations
The National Government has reached a significant milestone in the development of the Papua LNG Project following the signing of the Development Forum Tier 1 Agreement, paving the way for further negotiations on the distribution of project benefits among stakeholders.
Minister for Petroleum Hon. Jimmy Maladina welcomed the signing, describing it as an important achievement towards establishing a fair, transparent and sustainable benefit-sharing framework for one of Papua New Guinea’s major resource development projects.
However, Maladina cautioned that signing the agreement was only the beginning, stressing that the Government, provincial administrations, landowners and project partners must ensure the commitments made translate into real development on the ground.
“Today’s signing is an important achievement, but it is not the end of the Development Forum process. It establishes the foundation for the remaining negotiations and, ultimately, for the effective implementation of the benefits agreed for our people,” Maladina said.
He said the Tier 1 Agreement reflected the shared commitment of the National Government, Provincial Governments, landowners and Papua LNG Project partners to ensuring the project delivers lasting benefits to Papua New Guineans.
Maladina emphasised that landowners and affected communities must remain genuine participants and beneficiaries throughout the project’s operational life.
He said benefits arising from the project, including royalties, development levies, equity participation, infrastructure development, business opportunities, employment and training, must bring meaningful improvements to people’s lives.
“Our people will judge the success of Papua LNG not simply by the amount of gas exported or revenue generated, but by the improvements they see in their communities better infrastructure and services, employment and training opportunities, stronger local businesses and meaningful participation in the project,” he said.
The Minister stressed that transparency, accountability and good governance would be critical in ensuring that benefits reach legitimate beneficiaries and contribute to long-term development.
He also called for greater participation by Papua New Guinean workers and businesses through employment, skills development, procurement opportunities and partnerships that promote the transfer of knowledge and technical expertise to local companies.
Meanwhile, Maladina confirmed that negotiations covering Tier 2, Tier 3, Tier 4 and Tier 5 would continue throughout October, guided by the benefit-sharing arrangements established under Tier 1.
The Government is aiming to conclude the remaining negotiations by early November.
Maladina urged all stakeholders to approach the remaining discussions in good faith and resolve outstanding differences through dialogue and verified information.
“I encourage all parties to continue these negotiations in good faith, fairness and transparency. Differences must be addressed through dialogue, verified information and respect for the agreed process,” he said.
The Minister acknowledged the contributions of Provincial Governments, landowner leaders, Papua LNG Project partners, the National Petroleum Authority, State agencies, forum facilitators, technical teams and advisers involved in the Development Forum process.
He said the Government remained committed to ensuring Papua LNG becomes an example of responsible resource development that strengthens the national economy while creating opportunities for Papua New Guineans.
“Signing agreements is important, but our people will ultimately judge us by implementation. We must ensure that the commitments made through this process become real benefits and lasting development on the ground,” Maladina said.
The signing represents another important step in advancing the Papua LNG Project, with attention now turning to the remaining benefit-sharing negotiations and the mechanisms needed to ensure landowners and affected communities receive their agreed entitlements.
The Minister reiterated that the ultimate measure of Papua LNG’s success would not be the wealth generated from gas exports alone, but the lasting economic and social improvements delivered to Papua New Guinea’s people and future generations.