The recently signed Papua LNG (PLNG) benefit sharing agreement has been applauded by the prime minister as it now paves the way for the Final Investment Decision (FID) to take place next month.

Prime Minister James Marape commended the political leadership, landowners and communities of Gulf and Central provinces for reaching a landmark agreement on the sharing of benefits from the Papua LNG Project, describing it as a major milestone towards the project’s targeted FID on 15 December 2026. 

The Prime Minister welcomed the agreement reached on Wednesday, 7 October, establishing an 80:20 headline benefit-sharing arrangement between Gulf and Central provinces, saying it demonstrated maturity, cooperation and a shared commitment to national development.

“This is a very important milestone in our march towards Final Investment Decision for Papua LNG. I commend the leaders of Gulf and Central provinces, the landowners, the facilitators and everyone involved for putting aside differences and reaching an agreement that is fair and equitable,” Prime Minister Marape said.

He particularly acknowledged Petroleum Minister Hon. Jimmy Maladina and the national petroleum authorities for their leadership, coordination and facilitation of the negotiations. 

The Prime Minister said the agreement reflected the longstanding relationship between the people of Gulf and Central, whose ancestors traded through the traditional Hiri trading system.

“Gulf and Central are not strangers to each other. From ancient times, through the Hiri trading system, our people understood trade, cooperation and the principle of equitable benefit-sharing. 

“That same spirit has prevailed in this important agreement. Gulf Province provides the gas resource and also hosts important pipeline infrastructure, while Central Province hosts the gas processing and export facilities, together with sections of the pipeline infrastructure. Both provinces have a legitimate stake in this development,” he said.

Prime Minister Marape said the 80:20 arrangement was consistent with the broad principles established under the existing PNG LNG Project, where benefits were distributed between upstream resource areas, downstream facilities and pipeline corridors.

He congratulated Gulf Governor Sir Christopher Haiveta, Acting Gulf Governor Morris Taudevin, Kikori MP and Minister for Provincial and Local Level Government Affairs Hon. Soroi Eoe, Kerema MP and Finance Minister Thomas Opa, Central Governor Rufina Peter, Hiri-Koiari MP Keith Iduhu, Kairuku MP Hon. Peter Isoaimo, and landowner representatives from both provinces for their leadership, cooperation and commitment to reaching the historic agreement.

"This agreement is a credit to all of you. It demonstrates that when our leaders sit together in good faith, we can reach outcomes that serve our people and strengthen investor confidence,” he said.