According to a report in the Post-Courier newspaper, the brief, prepared by the Department of Petroleum and Energy for the minister, said there would be a major review of proposed strategic gas projects that would update related licence conditions.
Expected to be complete within 40 days, the internal review will assess state reimbursement through a termination penalty agasinst project joint venture partners liable.
The brief stated that joint venture partners must accept a $US1 billion termination penalty if the parties decide to terminate the gas agreement, regardless of any reason, and also agree to the immediate termination of all related licences.
The review will also assess the Government's right of first refusal for any sale of licence interests.
The brief also addressed the abandonment of the PNG Gas Project saying that joint venture partners will be called on to reimburse the Government for all expenses associated with the failed PNG-to-Australia gas pipeline project.
The brief stated: "The gas pipeline project cancellation delayed exploitation of the gas resources by around 10 years and cost the State many millions [of kina]."
In relation to PNG LNG, the brief said the country would agree to the text of the agreement in advance of front-end engineering design, but would not execute the agreement until FEED is completed.
Three separate liquefied natural gas projects are currently being planned, with Liquid Niugini Gas, the PNG LNG joint venture and LNG Limited all keen to move their schemes into development.
