PNG reneges on offshore gas agreement again

PNG reneges on offshore gas agreement again

The government of Papua New Guinea (PNG) has again changed the agreed fiscal terms for Twinza Oil’s proposed Pasca A gas project, which would be the country’s first offshore development. Significantly, the move underscores the increasing political risk for resource investors, such as ExxonMobil, in PNG.

PNG has repeatedly reneged on agreed terms and increased its demands for the shallow-water Pasca A development over the past year or so. However, on 6 July 2021, Twinza Oil and the government sealed a new deal that both parties committed to uphold.

But despite apparent strong support from Prime Minister James Marape, who on 13 July announced that negotiations had concluded, and that the official agreement would be signed on 29 July, the government is not honouring the latest deal, said Twinza yesterday.