Wednesday, May 16, 2012

Duma denies terminating Gulf LNG Project

Petroleum and Energy Minister William Duma yesterday (Tuesday) denied that the government had terminated the Gulf LNG Project, The National reports.

Duma at the PNG LNG site outside Port Moresby last Friday.-Nationalpic by MALUM NALU

He, however, confirmed that the government had served warning on InterOil about deviating from the Gulf LNG Project Agreement of December 23, 2009.
Duma made the denial when asked to comment on stories widely circulating on the internet that his department planned to cancel approval for InterOil’s “US $6 billion liquefied natural gas complex but it was confident the project could be saved”.
InterOil said the government had no right to end the agreement and that it had the support of Prime Minister Peter O'Neill, who faces an election June.
Duma, in reply, said he represented the government in his capacity as minister for petroleum and energy.
“We (government) are only warning InterOil that they are deviating from the project agreement,” he told The National.
“If they continue to deviate serve notice, through to termination, if you continue to disregard us.
“If InterOil are saying that they’ve been terminated, that’s not the case.
“We are only warning them, we are not terminating them.
“We have not cancelled the project.
“We’ve been urging them for the last two years to get the project up and running before the 2012 elections.
“I’ve been very patient.”
The Gulf LNG Project was signed with much fanfare just before Christmas in 2009.
Following approval of the agreement by the National Executive Council on December 10, 2009, Duma and acting Governor-General Dr Allan Marat signed the agreement securing PNG’s second LNG project.
The signing was witnessed by then Prime Minister Sir Michael Somare.
The agreement sets fiscal terms for a 20-year period, which include a 30% company tax rate and certain exemptions applicable to large scale projects of this nature.
It also provides for a 20.5% ownership stake to be held by the PNG government’s nominee, Petromin PNG Holdings Ltd.
A further 2% ownership stake will be taken by landowners directly affected by the plant.
All that, however, is now at stake.

1 comment:

  1. Anonymous4:15 PM

    LNG stands for Longlong Na Givim. Yes, arrogant leaders were made to surrender PNG's sovereignty to LNG proponents. Wonder how they will campaign to mislead people to vote for them. Mad mad mad leaders are and will be when people shun them at the polls.