The lack of foreign exchange is having a deep impact on Papua New Guinea’s financial system. A new World Bank report shows that mining is the biggest generator of foreign exchange in PNG, but what about LNG projects?
Mining & Energy
The suspension, at least for now, of negotiations over the P’nyang LNG project, has raised issues about the investment environment in Papua New Guinea and the issue of risk, according to analysts.
The court deadlock over the Wafi-Golpu project has ended with the National Court in Lae throwing out the injunction relating to the Memorandum of Understanding (MOU) that had brought the project to a halt. It opens the door for a potential US$5.4 billion (K18 billion) investment into Papua New Guinea.
What is likely to happen with the P’nyang gas project? Resources analysts say that it is cost competitive in world terms, and examine some of the options that the players have.
Papua New Guinea’s Prime Minister James Marape has announced the end of negotiations with ExxonMobil over the P’nyang gas agreement. The project’s developers have responded to his claims that there was ‘an unwillingness to agree to reasonable terms’.
As talks between ExxonMobil and Papua New Guinea’s State Negotiating Team over the P’nyang gas project reach their nominated ‘walk away’ deadline today, the Prime Minister, James Marape, has said he is confident that LNG will help underpin economic growth in the country for the next decade.
ExxonMobil and the government-appointed State Negotiating Team have until the end of January to negotiate an agreement for the P’nyang gas project, says Minister for Petroleum.
Although the extractive sector continues to be responsible for the bulk of Papua New Guinea’s exports, the latest Papua New Guinea Extractive Industries Transparency Initiative report has found that revenues to government remain comparatively small. Here’s what you need to know.
St Barbara will invest A$8–$12 million (K19–28 million) on exploration activities in Papua New Guinea this financial year with the aim of extending its Simberi gold mine beyond its current mine life.
As Papua New Guinea awaits the outcome of ongoing negotiations over the P’nyang gas field, Peter Botten, CEO of PNG’s largest company, Oil Search, has hinted that time may be running out to reach an agreement.