The state must take a 60% to 65% share of revenue from future projects, up from just 40% on recent petroleum ventures. His government also wants to see the financial benefits flow through to the state coffers quicker, and for developers to commit to using local labor, goods and services in their operations wherever possible. Among developments in focus are Barrick’s giant Porgera gold mine, where production halted when the government in April refused to renew its mining lease. Marape on Wednesday denied reports that his actions were tantamount to nationalization, saying the government had only exercised its rights under PNG law to reclaim the lease after 30 years and that all assets at the site remained Barrick’s.
Talks with Exxon Mobil on an agreement to develop the P’nyang gas field broke down in January after the U.S. major rejected the government’s demand for improved terms compared with Exxon’s existing PNG LNG project, which started in 2014. PNG “has been unfairly held to ransom” by Exxon and its partner Oil Search Ltd., Marape said Wednesday, as they’re insisting the project proceed in tandem with a related venture sanctioned by the government last year, Total SA’s $13 billion Papua LNG.