PNG CHRISTMAS BRINGS PROSPECT OF PROSPERITY

Editorial

PNG Post-Courier

PORT MORESBY, Papua New Guinea (Dec. 22, 2009) – SANTA Claus arrived in Papua New Guinea with bags full of money this Christmas with another liquefied natural gas project agreement set to be signed tomorrow.

This will be another US$7 billion liquefied natural gas investment in the country following the agreement last month to invest up to US$15 billion on the ExxonMobil led PNG LNG project.

The project agreement for the InterOil-led liquefied natural project will pave the way for the commercialization of the Elk/Antelope gas reserves discovered by InterOil.

Acting Governor-General Dr. Allan Marat will first sign the deal at the Government House followed by the signing between InterOil and the State at the Parliament House.

The agreement will then be registered with the Department of Petroleum and Energy.

Petroleum and Energy Minister William Duma will be among Government ministers officiating at the signing at Parliament House.

The proposed LNG would be developed by InterOil and its joint venture partners including foundation partner Pacific LNG Operations Ltd.

The project agreement to be signed today establishes the terms for commercializing and monetizing the Elk/Antelope natural gas resources.

InterOil expects the natural gas produced will be treated at a conditioning plant in the Gulf Province and then transported to the proposed LNG plant site near the company’s existing refinery at Napa Napa.

InterOil anticipates the LNG plant will be designed to operate as a tolling facility, and that the LNG will be jointly marketed by the upstream owners on behalf of the joint venture.

Prime Minister Sir Michael Somare said recently the Government has had a long and successful partnership with InterOil, and "we are pleased to build on our relationship through this agreement".

The strategic LNG project proposed by InterOil has the potential to provide significant benefits to the people of Papua New Guinea for years to come.

The job creation, education and ancillary economic development opportunities that are expected to result from InterOil’s project will be important contributors to ensuring Papua New Guinea’s sustained prosperity well into the future.

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