Monday 29 January 2024
Prime Minister and Treasurer, Hon. James Marape has tasked the new Minister for Petroleum, Hon. Jimmy Maladina to deliver on the outstanding work left off by the former minister since 2019.
This includes landowner issues relating to PNGLNG, Production-sharing Regime work on PNGLNG, the Pasca and Wildebeest projects, Papua LNG landowner forum, and delivering a clearer work plan on all the projects both on-the-ground and upcoming.
“I have issued out work for all ministers who have been appointed. Minister for Petroleum has been asked to pick up from where Minister Kua has left off.
“Unfortunately, four years on we have not yet completed the landowner-related issues in PNGLNG, especially issues of PDL1, PDL7, PDL8, PDL9, PDL5 and PDL6, and the Redetermination Structure that has offset PDL2 which has been the most stable PDL for a very long time – that’s the Kutubu Oil Project.
“So I have asked the new minister to make a conclusion on the PNGLNG landowner issues so that landowners can become beneficiaries to the project. We need to bring this to a conclusion.”
The Prime Minister said this group of landowners could not be paid their monies although monies are being held at the Central Bank, and this was not fair on them as other landowners along the pipeline and plant site have already been receiving theirs because of this outstanding issue, especially as the first gas has been out since 2014.
“This matter should have been concluded, and the new Petroleum Minister has been tasked to focus on these areas.”
Prime Minister has also tasked Mr Maladina to progress the Production-sharing Regime work that Minister Kua was tasked to bring about, however, this is currently in the final stage of completion.
“We don’t want to compromise investors from making a return on their investments but focus on PNG getting early and greater return, not just on project equity and royalties but looking at the Taxation Regime and looking at optimizing on Local Content and Downstream Processing focus of the LNG sector.”
PM Marape said it was “high time” that a Petroleum Minister delivered a clear visual plan on the use of PNG’s oil and gas for the petro-chemical industry which he said has been outstanding for too long.
“The new minister has been given these clear tasks, the same tasks that I had issued the former Petroleum minister in 2019. This task remains outstanding as I speak.”
Minister Maladina is also expected to bring to a conclusion outstanding matters on the Pasca Project putting greater focus on PNG’s national interest; clear out outstanding matters on the new Wildebeest project in Gulf; and to make sure that the P’nyang Resource is synchronized back-to-back with Papua LNG project.
For the Papua LNG landowner issues, Minister Maladina has been tasked with spearheading the landowner development forum, which the Prime Minister has directed to take place in Kerema town instead of outside in Port Moresby for the purposes of transparency and accountability.
The National Government has allocated an Infrastructure Development Grant last year 2023, which PM Marape said would be complemented with this year’s Infrastructure Development Grant for Kerema and Ihu, Orokolo Bay, and Baimuru to assist accommodate the coordination of this important forum.
“I have also asked that the ‘Take Back PNG’ or our National Development interest be maintained in every hydrocarbon project in the country. “
“A similar conversation is being had with the Mining Minister, and in fact, all our new ministers so they are on par with the vision to Take Back PNG,” said PM Marape.