Papua New Guinea Prime Minister Peter O’Neill has resigned, citing a need for change, after weeks of unrest during which several ministers quit.

He announced his resignation after seven years at a press conference in Port Moresby on Sunday, and has handed over the leadership to Sir Julius Chan, who becomes prime minister for the third time.

The news follows weeks of turmoil in Mr O’Neill’s People’s National Congress Party, with several ministers in the coalition quitting.

Foreign Minister Marise Payne is confident Australia will maintain a good relationship with Papua New Guinea no matter who leads the Pacific nation.

Senator Payne praised Mr O’Neill saying he has played a pivotal role in strengthening Australia’s partnership with PNG, which receives more than $500 million in aid from Australia each year.

She’s confident this relationship will continue regardless of who leads Australia’s “closest friend and closest neighbour” in the region.

“Obviously, these are matters for the Papua New Guinea parliament and political parties and we will work with the leadership as it is determined by them,” she told ABC Radio National on Monday.

“And I’m sure that no matter who that is, that will be a continuing approach similar to the one that we’ve enjoyed in recent years.”

Senator Payne said it was too soon to determine if a leadership change would have implications for Australia’s offshore processing deal with PNG.

“We’ll obviously deal with those issues as they arise,” she said.

“I think it’s premature to speculate on those. As we’ve seen in recent weeks, Papua New Guinea politics is historically and clearly currently very dynamic.

“You’d be a very brave person to predict outcomes at the moment.”

Mr O’Neill’s authority was expected to be tested in parliament on Tuesday, with the opposition thought to have enough votes to control the floor of parliament to mount a vote of no confidence.

Much of the concern about Mr O’Neill’s government has reportedly been unease over a recent natural gas development deal with France’s Total and its partners.

Finance Minister James Marape defected in April in the wake of the gas deal, while other government MPs followed him out the door over recent weeks – including nine on Friday.

#PapuaNewGuinea PM Peter O'Neill has resigned.

He has been in office for 7 years & faced calls to resign for weeks over a range of issues.

After a series of high-level defections from his government to opposition, he accepted he had no support 2 continue https://t.co/4m87XVNEeb

— Allawi Ssemanda, PhD. (@AllawiSsemanda) May 26, 2019

Mr O’Neill, who had been resisting calls to quit, at the beginning of May adjourned parliament for three weeks. It was due to sit again on Tuesday.

The ABC reported then that Opposition Leader Patrick Pruaitch said the opposition had submitted a notice of its vote of no confidence and was committed to ousting O’Neill when parliament returned on May 28.

In a statement on Sunday Mr O’Neill said he intended to visit the governor-general this week to clear the way for parliament to vote for the next prime minister, with Mr Chan his nominee.

He said PNG needed a continuation of the stability his government had provided since 2011.

“The point must be made very clearly that this is not a change of government, it is the continuation of a government agenda that has changed our nation for the better.

Mr O’Neill said there was “no way that I could stand by and allow the opposition to come into government with their dangerous mix of wild ideas.”

Australian Prime Minister Scott Morrison paid tribute to Mr O’Neill, saying he had been “a passionate servant of his country”.

He said he would not comment on who would succeed him, but said Australia would continue to enjoy a strong relationship.

“PNG is our closest friend and neighbour, there is just a small body of water that is between us and PNG, and we have a special relationship, and always will,” he said.

“I will look forward to working with the prime minister of PNG in the same way I have enjoyed such a strong friendship and relationship with Peter O’Neill.”