Papua New Guinea Leadership Delays Exxon-Total Project
May 30 2019 - 9:36AM
Dow Jones News
By WSJ City
Papua New Guinea, which joined the ranks of the world's
significant energy exporters five years ago, installed a new prime
minister, James Marape, who has called for greater local control of
resources. The move could upset a gas deal with international
energy giants Exxon Mobil and Total.
KEY FACTS
--- James Marape was elected to succeed Peter O'Neill, a
seven-year leader who stepped down amid unrest.
--- The government had agreed to a multibillion-dollar project
with oil giants Total, Exxon, and Oil Search.
--- The project is part of an industry expansion aimed at
doubling the country's natural gas exports.
--- Local communities have questioned projected revenues and
employment guarantees.
--- Marape said he wanted "more local content participation in
our gas, oil sector or mining industry."
--- The change of leadership could delay production by roughly
two years, to beyond 2025.
Why This Matters
Despite its resource wealth, Papua New Guinea is still one of
the world's least-developed nations.
Governments of many developing nations rich in resources are
pressing companies for a greater share of the wealth to plug budget
deficits, via higher taxes and demand for greater stakes in mines
and fields.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
May 30, 2019 09:21 ET (13:21 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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