O’Neill Warns Against US$3 Billion PNG Papua LNG Concessions

Papua New Guinea former Prime Minister Peter O'Neill has raised alarm over what he describes as unacceptable concessions reportedly being considered by the government in negotiations over the Papua LNG project.

In a statement issued yesterday, O’Neill said PNG must not negotiate against its own interests, warning that talk of US$3 billion (K12 billion) in concessions to developers could come at a heavy cost to the country.

 O’Neill Warns Against US$3 Billion  PNG Papua LNG Concessions

He urged the government led by James Marape to maintain a firm position in its dealings with energy giants TotalEnergies and ExxonMobil.

“The time for going cap-in-hand to multinational corporations is over,” O’Neill said, adding that any move to offer further concessions would disadvantage Papua New Guineans.

He argued that current global tensions, particularly in the Middle East, have placed PNG in a stronger bargaining position, noting that disruptions in countries such as Qatar, Iraq and the UAE have affected production for major energy companies.

O’Neill said instead of conceding ground, PNG should leverage its status as a stable investment destination to secure better terms under the Papua LNG agreement.

He also pointed to the original 2019 deal, describing it as fair and commercially sound, with provisions that included 22.5 percent equity for the State and significant benefits for domestic energy supply.

“The latest intel is that the government is planning to give away around US$3 billion in concessions to project developers to cover the cost blowouts attributed to government stalling,” he said.

“Every dollar given away in concessions is a dollar taken from our hospitals, our schools, and our infrastructure.”