PM commends Central Gulf

Prime Minister James Marape has commended the political leadership, landowners and communities of Gulf and Central Provinces for reaching a landmark agreement on the benefit sharing of Papua LNG project.

Following months of negotiations, Gulf will receive 80 percent and Central 20 percent.

In a statement , Marape described it as a milestone towards the project's targetted Final Investment Decision in December.

He says this demonstrates maturity , cooperation and a shared commitment to national development.

The agreement is consistent with the broad principles established under the existing PNG LNG Project , where benefits were distributed between upstream resource areas , downstream facilities and pipeline corridors.

It now enables Petroleum Minister Jimmy Maladina to bring the necessary submissions to National Executive Council for decisions on the distributions of project benefits.

These would increase infrastructure development grants , equity participation and other policy based benefits for Gulf and Central Provinces.

The Prime Minister also affirmed the government's policy, 40 percent of the State's equity participation must flow back to the provinces and landowners , where resources are developed.