PORT MORESBY, Papua New Guinea, Nov. 4 (UPI) -- Papua New Guinea could become a poorer nation if proceeds from its liquefied natural gas project aren't managed properly, U.S. Secretary of State Hillary Clinton said Wednesday in the capital city of Port Moresby.
Exxon Mobil's massive LNG project, when slated to come into production in 2014, is expected to double the country's growth and fuel some $16 billion into the aide-dependent country. It is the country's first LNG gas project.
Clinton's visit to PNG is part of a seven-country, 13-day tour of the Asia-Pacific, concluding in Australia over the weekend.
"There is a phrase 'resource curse' where countries with an abundance of natural resources like oil and gas or gold or minerals, if they are not handled right can actually (make) a country poorer instead of richer," Clinton said.
Clinton said the United States was ready to help translate PNG's natural resources "into widespread prosperity" and wanted to provide whatever help it could, including assisting with the creation of a sovereign wealth fund, to help the country manage its coming resource revenues.
"We know that Papua New Guinea wants to do this right and we want to provide whatever technical assistance and help that they would need," said Clinton, adding, "We want to help you manage these new revenues wisely."
"Our departments of Interior and Treasury are already working with the respective Cabinet ministries here to work to see how the United States can be of help," she said.
She said the United States would soon be breaking ground on a new embassy in PNG that "will symbolize the future."
Clinton also said the United States wants to provide technical training for the country's scientists and engineers as well as job training so that it is PNG residents "who take the jobs that are created."
In September villagers attacked the PNG Exxon Mobil project, burning heavy machinery and using high-powered weapons to damage construction equipment near the site, The National newspaper in PNG reported. Residents of the area say they have been excluded from participating in the initial stages of construction of the 6.6 million ton per year processing facility.
Clinton added that in preparing for its future as an energy producer, PNG has an obligation to tackle climate change, saying that the country "represents both the promise and the peril, more energy resources but more threat from climate change."
Last month Greenpeace awarded the PNG government its "Golden Chainsaw" award for failing to protect its rainforests.
