Papua New Guinea Prime Minister, Sir Michael Somare, has told Parliament that the Government has agreed with the fiscal terms on the liquefied natural gas or LNG project with the project proponents.
Sir Michael told the paper, the National, that the fiscal terms were agreed to between the state and ExxonMobil last week.
He said the fiscal or tax terms of any project remain the biggest issue, because it determines what shares of the revenue generated will go to the State as the tax collector and what shares of the revenue will go to the project.
He said the terms agreed represent value for the State, and address the important issue of accessing the windfall revenue that is currently being enjoyed by the oil and gas industry whilst ensuring that the project proponents receive an appropriate return - on what could be a US$10 billion investment.
He said funds have been transferred, people have been engaged and the marketing personnel have begun introducing Papua New Guinea LNG to the rest of the world.