Friday, November 16, 2012

PNG government seeks 50% stake in LNG project

By Liam Fox

ABC Port Moresby

The Papua New Guinea government has announced it wants a 50 percent stake in a multi-billion dollar liquefied natural gas project.
For much of this year the PNG government has clashed with a consortium led by InterOil Corporation over the development of two gas fields in Gulf Province.
In May the government threatened to terminate the project agreement because it didn't like InterOil's design.
Now the Prime Minister Peter O'Neill says cabinet has approved a "50/50 Gulf LNG Project" with the state to take up a 50 percent equity interest, much more than the 22.5 percent allowed for under PNG law.
In a statement, Mr O'Neill said the fiscal incentives in the current project agreement will have to be reviewed and an experienced operator found to operate the upstream facilities.

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