Papua New Guinea's Petroleum and Energy Minister says InterOil has been misleading major companies which are potential operators for the Gulf Province LNG Project.
The government has shelved InterOil's planned project after it found the Canadian-based petrol company deviated from the 2009 agreement it reached for the project.
The Minister, William Duma, says the agreement stipulated that the project involves a major international LNG operator, something he claims InterOil isn't.
He says InterOil has denied a host of potential operators access to data about the project as part of the due diligence.
"We're not forcing them to go into bed with a particular company. All we're saying is look, these are the options; explore them and do a deal and sell down the equity and develop the project and get on with it. InterOil for some reason is misleading a lot of people. It's a concern. Papua New Guinea is a small country, we have to be frank with each other."