PNG Resource Giants Moving Forward, Marape Tells Nation
After months of speculation around the future of Papua New Guinea’s biggest resource developments, Prime Minister James Marape has given firm assurance that Papua LNG and the Wafi-Golpu Gold and Copper Project are advancing toward their next milestones.
The Prime Minister said claims suggesting the projects had been abandoned were unfounded, stressing that active negotiations, technical reviews and cost adjustments are ongoing with project developers.
He said Papua LNG remains alive following direct engagement with TotalEnergies leadership, including talks with Chairman and Chief Executive Officer Patrick Pouyanné.
Mr Marape explained that while early construction estimates rose sharply after initial EPC tenders — driven by global inflation and supply chain challenges — the project partners moved swiftly to address the cost pressures.
Through a detailed review, TotalEnergies managed to cut nearly US$4 billion from the projected increases, bringing the expected construction cost to about US$14 billion. The Prime Minister said this keeps the project commercially workable while safeguarding Papua New Guinea’s long-term returns.
He said the government is now focused on progressing key steps such as agreements, licensing and preparations toward a final investment decision.
On Wafi-Golpu, Mr Marape said discussions with Harmony Gold Chairman Patrice Motsepe confirmed that technical concerns raised earlier are being addressed through an independent peer review.
The review process, he said, is in its final stages, with findings expected later this month. The government, meanwhile, remains firm on its intention to hold a 30 per cent stake in the project.
Mr Marape said the State is ready to bring Harmony Gold and Newmont Corporation together to resolve remaining matters and move toward development approval.
“The State intends to participate at 30 per cent equity in Wafi-Golpu. The State must not be questioned about its ability to finance its equity. The State does not go broke — it refinances over time,” he said.
The Prime Minister said claims suggesting the projects had been abandoned were unfounded, stressing that active negotiations, technical reviews and cost adjustments are ongoing with project developers.
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| PNG Resource Giants Moving Forward, Marape Tells Nation |
He said Papua LNG remains alive following direct engagement with TotalEnergies leadership, including talks with Chairman and Chief Executive Officer Patrick Pouyanné.
Mr Marape explained that while early construction estimates rose sharply after initial EPC tenders — driven by global inflation and supply chain challenges — the project partners moved swiftly to address the cost pressures.
Through a detailed review, TotalEnergies managed to cut nearly US$4 billion from the projected increases, bringing the expected construction cost to about US$14 billion. The Prime Minister said this keeps the project commercially workable while safeguarding Papua New Guinea’s long-term returns.
He said the government is now focused on progressing key steps such as agreements, licensing and preparations toward a final investment decision.
On Wafi-Golpu, Mr Marape said discussions with Harmony Gold Chairman Patrice Motsepe confirmed that technical concerns raised earlier are being addressed through an independent peer review.
The review process, he said, is in its final stages, with findings expected later this month. The government, meanwhile, remains firm on its intention to hold a 30 per cent stake in the project.
Mr Marape said the State is ready to bring Harmony Gold and Newmont Corporation together to resolve remaining matters and move toward development approval.
“The State intends to participate at 30 per cent equity in Wafi-Golpu. The State must not be questioned about its ability to finance its equity. The State does not go broke — it refinances over time,” he said.
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