O’Neill wants fiscal terms of LNG to be finalised before Apec, says Botten
PRIME MINISTER Peter O’Neill wants the fiscal terms of the Papua LNG to be finalised before the Apec Leaders’ Summit in November. This was noted by Oil Search managing director Peter Botten in the company’s half-year report released yesterday.
Botten told The National that negotiations to date were positive, despite fears the State may be ill-prepared due to the process seeming to be rushed to cater for Apec. “I can’t say how long that is going to take,” he said.
“As you know with all negotiations, sometimes they are done quickly and sometimes they aren’t.
“I do believe the State is aware of the upside and the downside of the original terms put into the PNG LNG.
“There is clearly going to be strong focus on national content, and of course the use of gas into the local market in PNG.
“I think we as a developer understand those aspirations.
“There has to be a balance for rewards for all parties to make this work.
“I think it is comfortable with where that sits.
“I think the engagement to date has been a robust but positive engagement.
“The discussions we have had with Government to date have been to strike an appropriate balance for the PNG people and the State to receive appropriate benefits from the next phase of the LNG project.
“I think that can be achieved in our negotiations and that the attitude of all sides are working towards that.”
Botten said an arrangement between developers was reached on the preferred downstream concept for the next phase of LNG development in PNG in February this year.
“This comprises the potential construction of three LNG trains producing approximately 8 MTPA, with two trains supplied with gas from the Elk-Antelope fields and one train underpinned by gas from the
PNG LNG fields and the P’nyang field, all co-located on the existing PNG LNG plant site,” Botten said.