Category Archives: Petroleum

PM Defends Shares Sale

The National

PRIME Minister Peter O’Neill has maintained that the decision to sell the State’s shares in Oil Search last week was made in the best interest of the country.

O’Neill was responding to questions from Moresby North-West MP Sir Mekere Morauta on why the shares were sold at a lower price than what they were bought for.

“Our shareholding in Oil Search is a long story. Today, that shareholding has been held by Kumul Petroleum Holdings,” he said.

He said the whole process started when the Morauta government was in office.

“In 2000, when Santos made an offer to the Morauta government to buy all the Oil Search shares, there was a cabinet meeting in Lae where all the cabinet members opposed that sale. And yet the prime minister (Sir Mekere) bulldozed it through and sold it to Oregon Minerals,” O’Neill said.

“Oregon Minerals that time was the holding company for all the mineral assets for PNG on behalf of our people.
“In 2001, the same Morauta government sold those shares to Oil Search – the entire Oregon shares.

“At that time, Oil Search was a very small company, only an exploration company.

“As a result, we held some shares in Oil Search because of that sale.

“And in order for us to participate in the LNG project that we have now, the (Sir Michael) Somare government saw fit to go and sell all our assets. Mortgage all our assets. In fact, all the shares in Oil Search.

“We were led to believe that the shares will be bought back by the government for the people.

“In 2014, when the arrangement was due for government to take back the shares, they refused to give us the shares. This was the property of the people of PNG. What else can I do? As the head of the government it was my duty to secure the interest of our people.”

He said it was why he saw UBS “to give us the money to finance the purchase to secure our interest in the biggest employer and biggest taxpayer in our country and protect our national interest”.

“I am simply cleaning up (Sir) Mekere Morauta’s mess, Patrick Pruaitch’s mess, and (Sir Michael) Somare’s mess. Let the facts speak for themselves.”

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State Adjusting to Economic Situation, says Fleming

The National

By MARK HAIHUIE

THE government’s sale of its shares in Oil Search shows that it is willing to adjust to the current economic situation, Bank South Pacific chief executive Robin Fleming says.

Fleming told The National that businesses would be anticipating similar undertakings by the government in the 2017 Supplementary Budget.

“The supplementary budget is important for business as it will be the first significant outcome of the government’s 100-day plan and an excellent signal to the business community of the specifics associated with the implementation of the plan,” Fleming said.

“Kumul Petroleum Holdings recently announced the sale of its Oil Search shares with the consequent exit of the UBS and JP Morgan-structured debt facilities.

“It indicates the government’s preparedness to make decisions that recognise current economic conditions.”
Fleming said the government could eliminate or defer commitments not critical to its long-term development plans.
“This is not to say that some of those longer-term developments are not important,” he said.

“But in the short-term, the focus should be on meeting any residual payment obligations from operational or development expenditure, where services have been provided or procurement completed.

“Payment and settlement of any such debt will provide cash flow for many businesses in PNG.”

Leadership Needed to Maintain Services

 May 26, 2017KIRIWINA-GOODENOUGH

BY LEONNIE WAYANG

Basic government services like health, education and infrastructure are continuing programs that leaders have to implement.

Kiriwina-Goodenough MP, also Minister for Forest, Douglas Tomuriesa, said it is not so much the completion of these programs but their maintenance.

“We have started a lot of programs and I’m confident of coming back to continue these programs; not so much on completing them but to keep them going like health, education programs and infrastructure development programs in the electorate, which are important.”

“You cannot complete those programs, those are continuing programs,” he said.

“They are government-funded programs, and all they needed is leadership to keep 

them going,” Mr Tomuriesa said.

“I’ve done what I had to do in the last five years. Sometimes you cannot do everything in one go, but we’ve started off somewhere.”

Mr Tomuriesa said when he took office in 2012, there was no five-year development plan available.

“I found there was no five-year development plan.”

“So the first thing we did was work on a five-year development plan; and based on this development plan, we were able to achieve some of the things that we have done.”

“If you look at my election poster, the 10 policies I have basically covers the five-year development plan itself.”

“Last year, I revised the five-year development plan, and it’s now a 10-year development plan,” he added.

Landowners told to engage consultant on oil spill issue

May 16, 2017 – The National 

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LANDOWNERS whose fisheries and coastlines have been affected by the oil spill in Fairfax Harbour need to get independent advice to see if they can sue Puma Energy for any damage caused to the environment, an expert says.

The expert from the Conservation and Environment Protection Authority (CEPA), said the landowners need to engage a consultant to look into their case.

“The query in relation to the possibility of local landowners suing the company is yes, however, it is well obvious that Puma is registered and has a valid environment permit which has obligation to fulfil the respective permit conditions.”

The spill at Fairfax Harbour, Port Moresby, occurred on April 25 from a leak from a subsea hose leading to Puma’s Kanudi terminal facility. The leak resulted in about 19 barrels of oil product being released into the harbour area, Puma said at the time.

The National asked the CEPA expert yesterday, who asked not to be named, for his opinion and he said: “It is now onus on the local landowners to engage an independent environmental consultant to independently calculate and verify the environmental damage caused by Puma Energy and taken up to key stakeholders – CEPA, Department of Justice and the Department of Petroleum and Energy.

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Puma Energy Staff cleaning the Oil Spills

“I understand that the CEPA has cooperated with Puma in working together to address this oil spill which were in relation to regulatory compliance under the Environment Act 2000 administratively.

“Our Environment Act 2000, in my personal view, is not that effective in considering the case of the local landowners when it comes to the environmental damage. However, we have a clause under Environment Act 2000 that warrants the emergency clean-up should CEPA see that Puma is not doing enough to control the environmental damage.”

Puma’s country manager, Jim Collings, told journalists last month that Puma wanted to “reassure people that this is a product that has been contained and cleaned up and we are managing that. We will continue to work to ensure that any work on the shore gets cleaned up”.

Collings said Puma safely dealt with 100,000 cubic metres of oil each month – approximately 630,000 US barrels – and that the incident posed no threat to the local fishing industry and marine life in the area.

PNG Government commits K300 Million to Star Mountain Plaza hotel

BY KEVIN TEME
THE PNG Government has committed K300 million for the building of the five star hotel – Star Mountain Plaza at Hohola in Port Moresby.

Managing Director of Mineral Resource Development Company Augustine Mano confirmed this yesterday on a tour of the site.

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Mr Mano said this is a milestone in itself as it is also the first time the government has partnered landowners in a major project as such.
“The State participation on this project shows a true partnership in every sense between the landowners and the government. We’ve had two NEC decisions, one in 2014 on the concept which the government had approved through the NEC and the second was in 2015 which is the project agreement,” Mr Mano said.
He revealed that the Government lived up to its commitment and has now committed K300 million for this project. “I want to thank you the government in having faith with the landowners to invest in such an iconic project like this,” Mr Mano said.
He said the project comprises two phases, the first of which will be completed two months before the APEC meeting in November 2018 while the second phase will continue thereafter.

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The project is being constructed at a cost of K1.2 billion with landowners as major shareholders at 80% and the government with the remaining 20 percent.

He reiterated this was a first such collaboration between landowners and the State.

Meanwhile, project manager Brian Eldridge said stage one includes the Hilton hotel, convention center, combined facilities and car park while stage two will include Hilton residential tower with 200 apartments.

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“The earthwork contract, negotiated with Vuksich and Borich (PNG) Ltd is delivered on budget including the car parks which has been completed and also on budget,” Mr Eldridge said.
He said 30,000 cubic meters of bulk earth works has also been completed and the hotel structure is complete.

Mr Eldridge said the convention center roofing laminate will commence on July 3 and will be completed by November 30 this year.

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Post Courier Live

Inaugural PNG Petroleum and Energy Summit starts today

By: Post Courier – 28th February 2017

The Inaugural PNG Petroleum and Energy Summit is aimed at building platforms for future projects in the petroleum and energy sector. Speaking to the media yesterday, Kumul Petroleum Holdings Limited (KPHL) managing director Wapu Sonk highlighted the need for more energy to source power for electricity.

He said the summit was one that would bring people with expertise to engage and help the government achieve its vision 2030 and 2050 goals.

Mr Sonk said that the main driver for this summit is to look at how far the country has come as an industry since the oil and PNG LNG productions in 2014 and with few more developments that were planned.

Taking advantage of that, he added that they are now looking at how best they can help the government in achieving its vision 2030 and 2050 by moving into the energy sector so that the people of this country can have access to cheap and reliable power services (electricity).

“The main purpose of this summit is to bring people and their expertise as well as finances to PNG. Therefore through this summit we can be able to exchange knowledge and making connections that will make the government’s visions for its people to have access to electricity a reality.

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“Our people need energy so we are trying to get to that platform, we are trying to find energy solution providers and with this summit we are hoping that they will come and provide us with that, whether it is geothermal, solar solutions, or hydro solutions.

“Those are the type of energy solutions that we are looking to bring, using our projects that is happening in the oil and gas,” he said.

Mr Sonk said using the experiences that the industry has from the PNG LNG Project, the third training including the Papua LNG projects were trying to build platforms that would enable the government to work with them to set project policies.

A total of 450 delegates are confirmed to attend the summit starting today and will end on Thursday. The delegates comprise mainly of existing LNG buyers and some prospective buyers and have also attracted a lot of big names in the industry, according to Mr Sonk.

 

http://www.postcourier.com.pg/Stories/summit-to-build-pngs-energy-sector/#.WLSv7W996Ul

PNG LNG announces addition to gas resources

By: PNG Today

IN Port Moresby, ExxonMobil PNG, operator of the PNG LNG joint venture, said yesterday it has added 2.3 trillion cubic feet (Tcf) to the existing PNG LNG project fields’ resource base following an independent review by Netherland Sewell Associates Inc.
The recertification study, which included all PNG LNG fields, found that the most likely technically recoverable resource is 11.5 Tcf, a 25 percent increase beyond the earlier 9.2 Tcf assessment.
“The independent review highlights the exceptional quality of the PNG LNG project resources and the significant increase in resource provides the potential for additional mid or long-term sales,” said Andrew Barry, ExxonMobil PNG managing director.


The people of Papua New Guinea will continue to benefit from the PNG LNG project for many years to come.
“We remain committed to working with the government, our co-venturers, provincial governors, landowners and communities to maximise PNG LNG resource value and provide long-term, sustainable benefits to the people of Papua New Guinea,” Barry said.
A significant contributor to the increase was the Hides field, due to completion of development drilling including previously undrilled areas of the field, completion of optimised long term depletion plans and production performance since start up in 2014.
In 2016, PNG LNG produced 7.9 million metric tons, an increase of 14 percent from the original design specification of 6.9 million metric tons a year. The PNG LNG project is providing reliable long-term supplies of liquefied natural gas to four major customers in Asia as well as spot and short-term supplies to those and other customers.
https://pasifik.news/png-lng-announces-addition-gas-resources/

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