Building the Foundations for a Long-Term Development Partnership: The Construction Phase of the PNG-LNG Project

Abstract

Large-scale oil, gas and mining projects require substantial investment of financial resources, technology and skills. Such investment carries well-documented risks and benefits.' It has the potential to significantly improve economic growth and prosperity for a country and its citizens, while also creating value for project partners and investors. On the other hand, poor management and governance of such investment and of the resource revenues that it generates, can lead to increased macroeconomic instability, corruption, conflict and negative environmental and socioeconomic impacts in host countries and communities as well as increased costs, delays and risks for project partners and investors. The core challenge for any government in developing its energy and mineral resources - and for the investors and project operators that it partners with - is to optimize project-related benefits and shared value while identifying, avoiding and mitigating risks and costs.