2 May 2013

PNG group says pro-active Exxon will avoid conflict over gas project

1:56 pm on 2 May 2013

An NGO in Papua New Guinea which monitors ExxonMobil's LNG project has encouraged the developer not to rely on the state to ensure the project proceeds on schedule.

Stanley Mamu of LNG Watch says that frustrations with the project have reached a head in Hela province and could erupt in a way that derails the venture.

Hela's Governor Anderson Agiru has given ExxonMobil and the government a 30 day ultimatum to address their contractual obligations in Hela or face legal action.

Mr Mamu says the developer must deal directly with Hela landowners over its commitments before the start of gas production next year.

"Before that, Exxon needs to go back and study the history of Bougainville Copper Limited (relating to the Bougainville conflict) - the state, the landowner and Bougainville Copper Limited - and find out who was the winner of that battle. I refer to that because if they can't issue a positive response to that within thirty days then that 19 billion US dollars which was spent on the PNG LNG project will be wasted."

Stanley Mamu