PNG TO PAY US$1.2 BLN CASH FOR GAS EQUITY: PM.

PORT MORESBY, Oct 1 Asia Pulse - Papua New Guinea (PNG) will pay around K3 billion (US$1.179 billion) in cash for its 19.4 per cent equity in the PNG liquefied natural gas (LNG) project, Prime Minister Sir Michael Somare has announced, reports The National.

Sir Michael told more than 300 guests at his surprise 40th anniversary in politics dinner at the Grand Palace restaurant last Saturday night that by next September, PNG would finalise the gas deal with ExxonMobil.

"We will, in fact, be paying cash for our equity. Not many countries that I know can do that, and I am in fact confident," he said.

Sir Michael also complimented the ministerial committee on gas for not being forceful but their understanding in dealing with multinationals to strike the gas deal.

"You have to have this balance. Give here take there and, when you know you balanced it, strike the deal," Sir Michael said.

I think thats what we have done and done it successfully.

The Prime Minister said negotiations were continuing and the Government would be making a big announcement by next September on the first LNG project, to be followed by a second similar project.