Team aims to renegotiate gas deal

Posted on The National

A state negotiating team (SNT) led by Petroleum Minister Kerenga Kua, pictured, left for Singapore on Thursday aiming to renegotiate the terms of the Papua LNG gas agreement.
The agreement on the US$13 billion (K44bil) project was signed by the previous government on April 19.
The Papua LNG project will develop the Elk Antelope gas fields which is expected to produce close to 2.7 million metric tonnes per annum.
Former Petroleum Minister Dr Fabian Pok told The National earlier that the State had signed on “what percentage shares to take, what per cent of benefits goes to the State, the developer and the provincial governments”.
Pok had said after the signing, French developer Total could then go to the financial institutions to raise funds for its investment in the project.
Kua said since the current government took office on May 30, it took the firm view that the Papua gas agreement was disadvantageous to the State and the people in certain respects and resolved to seek a renegotiation.
He cautioned that considering what was at stake, the peoples’ expectations needed to be guarded during this period.
“The negotiations could work out well or even disastrously, but either way, the people must be ready to accept whatever the outcome. As a nation, we have reserved all our rights in law as we move down this path,” Kua said in a statement.
“Success in the discussions could lead to an early progress of the project.
“By the same token, failure could have very serious ramifications. But failure must not be ruled out and must remain within our contemplation.
“The final outcomes will be briefed to the Prime Minister James Marape and the National Executive Council, and the final decision will be taken by the NEC.
“Considering our nation’s economic circumstances short and long term, no stone must be left unturned at such important junctures.”

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