This was posted on Yahoo recently.
If true, pandora's box has been opened, including consideration of EWC/FLEX LNG program.
VS
The government yesterday explained its position on the second LNG project, operated by InterOil Corporation.
Minister for Petroleum and Energy, Mr William Duma said the Governnment has suspended the notice of intent it issued to terminate the Gulf LNG project agreement.
“On 31 May 2012, Minister Duma, the Minister for Petroleum and Energy, issued a press statement relating to the notice of intent to terminate that was issued by the State on 11 May 2012 under the terms of a project agreement that had been entered into between the Independent State of Papua New Guinea and Liquid Niugini Gas Limited ("LNGL"
, an affiliate of InterOil Corporation on 23 December 2009.
“The Intent Notice was issued as a consequence of the State’s desire to ensure that the LNGL project (which uses gas from the Elk / Antelope Gas Fields) was developed in a manner which was consistent with the Project Agreement and with State’s strategy of maximising the long term financial and developmental impact of the petroleum sector on the economy of the Independent State of Papua New Guinea.
“The Intent Notice triggered a six month consultation period between the State and LNGL in relation to actions to be taken by LNGL to ensure that the LNGL project is developed in the manner the parties had already agreed,” Mr Duma said.
Minister Duma said since issuing the Intent Notice, representatives of the Department of Petroleum and Energy, the Department of Treasury and the Department of Justice have had a number of constructive meetings with representatives of InterOil and LNGL.
He said these discussions have now reached a stage where the State has agreed a basis for suspending the Intent Notice, in order for representatives of the relevant Departments to fully brief the Prime Minister and the members of the National Executive Council (the "NEC" on the progress that has been made since the NEC last considered the LNGL project.
he said accordingly, the State has agreed to suspend the Intent Notice until the NEC has considered the status of the LNGL project.
Mr Duma outlined that the State's objective has been and continues to be to ensure that:
1. the LNGL project is developed in a way which has a positive impact on the financial position of the State and on economic and business activity of our Nation;
2. the Nation builds upon the experience and capability developed from the PNG LNG Project; and
3. the LNGL project is sequenced and structured in a responsible manner to ensure that the project is positive for our Nation and its people.
ends/....
