PNG PORTS Corporation has scooped a contract to provide pilotage services to the massive PNG LNG project.

The 10-year deal is expected to yield the state owned enterprise up to K25 million (A$11.56 million) per year.

Under the contract, PNG Ports will also provide line boats and security and surveillance services to the PNG LNG project.

Representatives from Esso Highlands, the operator of the PNG LNG project and PNG Ports met recently to discuss strategies on how to carry out the agreement, which comes into effect immediately.

Esso procurement manager Rob Stubbe said the contract was a result of a lot of hard work from both parties.

“This is a milestone development for PNG Ports and it’s in line with our efforts to develop local companies,” he said.

PNG Ports chairman Nathaniel Poya said the signing of the contract marked a very important milestone in the growth of the company.

“We take this as a mark of trust and confidence that the PNG LNG project has shown in PNG Ports with gratitude and commit to ensuring that our services meet and exceeds expectations,” he said.

“I note that marine pilotage service is a key component of the services agreement and I am proud to say that PNG Ports been providing pilotage services for more than 30 years incident free.

“I am confident that both the PNG LNG project and PNG Ports will gain from this partnership.

“On behalf of PNG Ports I am pleased to give Esso Highlands our assurance that we will ensure that PNG Ports is able to meet its obligations under this service agreement to carry out the work required.”

PNG Ports will be sending four of its pilots to commence training in Brisbane, Australia next month following the contract.

“As a state owned enterprise, we are committed to providing all necessary support to this project of national significance which the National Government is fully committed to seeing successfully completed,” Mr Poya said.

PNG Ports manages 16 of the 23 declared ports in PNG, including Lae, Port Moresby, Kimbe, Madang, Alotau, Rabaul, Kavieng and Oro Bay.