Papua New Guinea Leadership Delays Exxon-Total Project

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)

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