Bid to stop K151b gas project signing fails

News that matter in Papua New Guinea

Bid to stop K151b gas project signing fails

PORT MORESBY: North Fly MP James Donald’s bid to stop the K151 billion P’yang liquefied natural gas deal project yesterday failed.

Despite successfully getting a court order restraining the signing at 10.30am, the Government went ahead with the signing at noon, claiming it was not aware of the court order.

Prime Minister James Marape said: “Everybody knows we are signing (the gas agreement) on Tuesday (yesterday Feb 22, 2022). They had every (opportunity before yesterday) to serve us the court orders.

“We will go to court to defend what we have done,” he added.

The dramatic twist of development for the multi-billion-kina project was reported by The National:

K151bil gas deal signed despite court order

February 23, 2022The NationalMain Stories

By GYNNIE KERO
THE signing of the K151 billion (US$44 billion) P’nyang liquefied natural gas project between the Government and the developer ExxonMobil went ahead yesterday despite a court order stopping it.
But Prime Minister James Marape told The National that they were not aware of the order issued by the National Court.
“We are not aware. We haven’t been served any court orders,” he said.
“Everybody knows we were signing (the gas agreement) on Tuesday (yesterday). They had every (opportunity before yesterday) to serve us the court orders. We will go to court to defend what we have done.”
The order was issued by acting judge Justice Emma Wurr around 10am yesterday after an urgent application for a stay was filed by North Fly MP James Donald through lawyer Ralph Saulep.
Donald named Petroleum Minister Kerenga Kua, the State and Esso P’nyang PNG Ltd, (a subsidiary of ExxonMobil), as defendants in the case.
Justice Wurr after hearing submissions from Saulep ordered that the defendants be restrained from signing the P’nyang gas agreement until further orders of the court.
The court also ordered Donald to file and serve the defendants necessary court documents by today (Feb 23). All parties are to return to court on Friday for a hearing. Saulep said copies of the court order were sent electronically (via WhatsApp) to the Attorney-General, Petroleum Minister and ExxonMobil’s office between 10am and 10.30am yesterday.
Marape was reportedly at Government House by around noon.
Saulep said a copy of the order was to have been served at Government House but policemen refused him entry.
“Justice Emma Wurr granted the orders sought. “Defendants are restrained from executing the gas agreement until the court otherwise orders. As soon as the orders were issued and sealed, we served the orders electronically which is the accepted means of serving many documents these days.
“They were served around 10am and 10.30am (yesterday).
“The court issued the orders before the signing of the agreement. We believe that court orders were brought to attention of all parties on time.” Saulep said they had to file the stay application because “an agreement becomes law once it’s signed”.
“The client’s concern is that once the agreement is signed, it cannot be reviewed,” he said.
“Secondly, once the agreement is signed, ExxonMobil becomes the monopoly as far as gas production is concerned.” Marape, ExxonMobil PNG Ltd and its partners signed the agreement for the proposed development of P’nyang.

Project worth billions

February 23, 2022The NationalMain Stories

By DALE LUMA
THE P’nyang liquefied natural gas project in Western will be worth US$44 billion (about K151.1 billion) upon completion, says Prime Minister James Marape.
Marape mentioned this yesterday after the signing of the P’Nyang Gas Agreement between the State and the developer ExxonMobil Ltd with its affiliate partners.
The construction phase will begin after the completion of the Papua LNG’s construction phase around 2028.
Earnings from the project will start flowing in around 2032 or 2033, Marape said.
The Government secured a 34.5 per cent in equity shares – the highest ever the country will be getting in a LNG project.
“We aim high in any project harvest in our country, we wanted to earn anything between 60 per cent and 65 per cent in as far as project economics is concerned,” Marape said.
“That is government policy but different projects has different modality in as far as project cost structure and rate of return is concerned and Exxon came out really well for us.”
The country also benefits from a three per cent production levy, better calculations in equity and royalty.
Marape said P’nyang was sequenced according to the Papua LNG project in which the country would enjoy eight years of construction benefits from the two projects.
ExxonMobil PNG Ltd managing director Peter Laden said the signing of the agreement was an important milestone.
He said since the discovery of P’nyang more than 30 years ago, significant resources had been put into the gas field.
“The gas agreement unlocks the next phase of the life cycle of P’Nyang providing a clear framework for all stakeholders towards a future development,” Laden said.
“The ExxonMobil operated 4.4 billion cubic feet P’nyang resource proposes to deliver LNG by constructing new upstream facilities in the Western province linked to existing infrastructures downstream.
“The development plans to commence after the Papua LNG project supporting the government’s desire for sustained growth and investment in the decade ahead.
“P’nyang for the landowners is an independent project and landowner benefits will be provided under a future benefit sharing agreement,” Laden said.

Govt, project co-venturers, ink deal

February 23, 2022The NationalNational

THE Government and the P’nyang project co-venturers, Esso PNG P’nyang Ltd and Ampolex (PNG) Ltd with affiliates of Santos and JX Nippon, signed the gas agreement for the proposed development of the P’nyang LNG project yesterday.
The agreement provides a firm framework towards the P’nyang project’s future development.
The agreement also reflects the Government’s desire for phased development of the Papua and P’nyang projects and its focus on provincial and national benefits.
The proposed ExxonMobil-operated P’nyang project would deliver LNG by constructing new upstream facilities in Western linked to existing infrastructure.
Subject to a final investment decision by the P’nyang project co-venturers, the P’nyang development is proposed to start after the Papua LNG project in support of ongoing economic development in PNG.
The P’nyang project would be an independent project, with landowner benefits to be provided under a future benefit sharing agreement to be negotiated by the State in accordance with the Oil and Gas Act.