Category Archives: Petroleum

Trainees Undergo Two-Day Course In Petrophysical Interpretation

 

Eight Papua New Guineans were given a chance by Oil Search to undertake a two-day course on petrophysical interpretation in Port Moresby.
These trainees were from the Department of Petroleum and Energy (DPE) and Oil Search.
The course served as an introduction to petrophysics and its application in the oil and gas industry.
This is the second course following the Sequence Stratigraphy course, which was held in August.
Knowledge in petrophysics provides accurate measurements used to calculate the volume of hydrocarbons in a field.
In the oil and gas industry, an accurate estimate of the volume of hydrocarbons is critical in order to make key business decisions.
The training was conducted by Ray Spicer, a petrophysical adviser with Oil Search.
Mr Spicer has worked in many of the world’s petroleum provinces, with experience and exposure to both onshore and offshore drilling in Australia, Indonesia, PNG, New Zealand, China, Russia, Former Soviet Union, Middle East and North Africa.
He is an international expert with a career spanning more than thirty years in petrophysics.
“A lack of proper understanding of petrophysics can lead to poor decisions resulting in the loss of millions of dollars,” Mr Spicer told participants.
Boio Arua, acting senior geologist with DPE, and one of the five young female attendees, said the two-day course has taught her a lot.
“The key takeaway for me is the ‘quick look’, where you just look at the logs and you are able to quickly tell if it’s a reservoir or non-reservoir,” Arua said.
The underlying commercial rationale for the oil and gas industry is the finding, assessment, development, production, and delivery of hydrocarbons for sale at a profit.
Petrophysical interpretation helps geoscientists in many ways, but importantly it can help with reservoir identification and characterisation, seal and fluid identification, assessment of the amount of hydrocarbon in a reservoir and how easily the reservoir fluid will flow to the surface. It also provides valuable input for well-deepening decisions.

Source: Post-Courier.

Power Project Welcomes LO Participation

Source: Post-Courier

 

 

Landowners can be given the first right of refusal as equity shareholders in the proposed US$120 million (K375 million) Port Moresby power project.
This is according to Kumul Petroleum Holdings Limited (KPHL) managing director Wapu Sonk, who says participation by resource landowners in the project was welcome.
He says this can be achieved through equity participation by the Mineral Resources Development Company (MRDC) in NiuPower Limited.
NiuPower is the entity created by KPHL and Oil Search Limited to underwrite the US$120 million gas fired power station.
LNG project landowners were angered at not being part of the project and threatened to disrupt the US$19 billion investment demanding they own the power station.
Hela landowners said that they had been denied the opportunity to participate in the new project, which will use gas from the PNG LNG liquefaction plant near Port Moresby.
“NiuPower has always been keen to bring in additional equity partners.
“Of course any equity participation must be on commercial terms consistent with the terms agreed between NiuPower and PPL.
“Otherwise there will be substantial increases in the cost of power to PPL and its customers,” Mr Sonk said.
He said Kumul Petroleum and Oil Search had previously invited the State owned MRDC to take equity in NiuPower’s investments to ensure landowner participation in the development of the Port Moresby power station.
“This offer remains open and NiuPower is awaiting engagement from MRDC to discuss the commercial terms for equity participation.
“We, therefore, urge landowners to work constructively with MRDC to achieve their participation in this milestone power project,” he said. Mr Sonk added that following the establishment of the power station, generation requirements for the National Capital District will be covered for a number of years.
“With the creation of NiuPower and the development of the gas fired Port Moresby power station, Kumul Petroleum and Oil Search directly contribute to the government’s energy objectives of electrifying 70 per cent of PNG by 2030, today estimated at around 10 per cent.
“We recognise that electrifying PNG is a development game changer that will improve the lives of our people in line with Vision 2050,” Mr Sonk said.

Photo Courtesy: Loop PNG

Qatar’s Broadening Economic Base Offers Opportunities for PNG

 

The Prime Minister, Hon. Peter O’Neill CMG MP, has concluded a series of high level meetings with Government Officials in the State of Qatar, from which he anticipates will come greater technical co-operation and investment from a country that has transitioned into the LNG market as is the current experience of Papua New Guinea.

 

Following meetings with Qatar’s Prime Minister, Finance Minister and other senior Government Officials, while on his return from the APEC Summit in Viet Nam, Prime Minister O’Neill said the key outcome of the visit is a further demonstration of the urgent need for Papua New Guinea to properly diversify the Nation’s economic base.

 

“We have been talking about diversifying our economy to maximise gains for some time, and now is the time to act so we can build our key sectors into the future,” the Prime Minister said at the meetings in Doha.

 

“There is great potential for creating thousands of new jobs, establishing new skills and stimulating small business.

 

“From humble beginnings, Qatar has diversified its economic base better than most resource-focused economies around the world.

 

“While oil and gas remain the cornerstone of its economy, Qatar has made inroads into downstream processing and other energy related fields.

 

“Qatar has also leveraged its resources boom to expand the tourism sector, and made substantial investment in agriculture around the world.

 

“The perspective from our engagement in Qatar is clear, that we have to not only get the most from expanding our LNG production, but we have to utilise these gains to diversify production and jobs in our economy.”

 

The Prime Minister said following the visit this week, a delegation from Kumul Consolidated Holdings, as well as other Government agencies and private sector representatives, will meet with officials in Qatar.

 

“The Qatar Prime Minister and I have agreed that we will bring together a joint forum to look at capacity building and investment opportunities between Papua New Guinea and Qatar.

 

“As an emerging economy, Papua New Guinea must take advantage of new opportunities to expand the economy. Importantly we must move beyond the boom-and-bust cycles that comes with dependency on global energy prices.

 

“In doing so we will draw on the experience and capacity building opportunities from countries like Qatar, and our other partners around the world.

 

“I look forward to tangible outcomes from the discussions that have taken place over the past two days, and delivering additional policy initiatives to work with the private sector.

 

“I thank the Prime Minister of Qatar, Ahmed Bin Jassim Bin Mohammed Al-Thani, for his invitation for Papua New Guinea to undertake an Official Visit to his country.”

 

Photo: Papua New Guinea’s Prime Minister, Peter O’Neill, meeting with Qatar Prime Minister, Ahmed Bin Jassim Bin Mohammed Al-Thani, meeting in Doha on Tuesday.

-Press-

Simulator Plant Constructed For Kumul Petroleum Academy

Source: Post Courier
November 14, 2017
BY JEFFREY ELAPA

The simulated safe live processing plant (SLPP) at the Kumul Petroleum Academy at Idubada near Port Moresby would be fully commissioned by the New Year after work started on it this week.


It (SLPP) will be the first to be installed in the region to train oil and gas technicians and operators in PNG.


The SLPP plant or simulator is specifically designed to train and equip young trainees as in a real work place like the processing facilities that are in Hides and Kutubu.


The construction and installation of the processing plant was witnessed by chief secretary and chairman of Kumul Petroleum Academy Isaac Lupari, Kumul Petroleum Holdings Limited managing director Wapu Sonk and CEO and managing director of Site Group International Vern Wills yesterday.


The training facility was bought at a total cost of more than K4 million for trainee students to use for their training purpose which is similar to the processing plants at Kutubu and Hides.


So far there are 32 students undertaking the 15 months training of which 16 of them were funded by ExxonMobil while the other 16 trainees were funded by Kumul Petroleum Holding Limited.


Site Group International technical manager, Michael Costelloe said the facility is like a real work situation in which there will be a main control centre to control the processing plant.
He said instead of oil and gas, the facility will use air, water and oil which will be passed through a mixture which will be transported to a oil processor to separate the oil, air and water as in a real processing plant where oil, gas and water is separated.


Mr Costelloe said by having the facility like that will help better train and equip the trainees as they face the real life experience at the work place.


Mr Sonk said the installation of the stimulated safe live processing plant will not only train trainees for the oil and gas projects but other fields also.


The Prime Minister Mr Peter O’Neill will commission the facility in February next year.

Royalties on track: Pok

November 8, 2017
By GYNNIE KERO.

Source: The National

THE Government has resumed the task of identifying landowners, particularly in the pipeline (Gulf and Southern Highlands) and upstream (Hela) areas of the PNG LNG project.


Petroleum Minister Dr Fabian Pok said once the landowner beneficiary identification (LOBID) process was completed, landowners would receive their royalty payments of more than K150 million deposited at the central bank.

 


Teams from the department left for one of the sites this week to begin the exercise.
“My department started the LOBID process in 2013-2015. Substantial work has been done in various licence areas,” Pok said.

 


“The current exercise which starts this week aims to conclude it. We appeal to all landowners and leaders to assist with the LOBID process so that the benefits distribution can commence as was done at the LNG plant site (in Central).

 


“We also encourage the landowners to withdraw any legal proceedings that are currently on-foot. Other landowners who might be contemplating new proceedings should not do so.

 


“We are looking at a minimum of four weeks to complete the LOBID process.”
Pok said landowners of the Papua LNG project would have to be identified before the project could begin.

 


Kumul Petroleum Holdings Ltd managing director Wapu Sonk clarified that court cases that halted the landowner identification process in recent years did not directly involve royalties.

 


“All court cases we talked about are really on BDGs (business development grants), IDGs (infrastructure development grants), high impact projects, those side benefits,” he said.
“The core benefits from the project are royalties, development levy and free-carried equity that is managed by the Mineral Resource Development Company.”

LANDOWNERS WILL BE PAID: MANO

 
By SHIRLEY MAULUDU 
Source: The National
 
MINERAL Resources Development Company managing director Augustine Mano says landowners will be paid their benefits once certain processes are carried out following the verification of clan-vetting information.
Petroleum Minister Fabian Pok said yesterday said the clan-vetting exercise had resumed for some areas of the PNG LNG project.
Mano said there were two sorts of benefits for the landowners.
“The royalties are with the Central Bank (Bank of Papua New Guinea) and the equity is with us (MRDC),” he said.
“This process is very critical for us to release both the royalties and equities because ultimately we’ll pay the royalties and equities.
“This clan-vetting exercise can take up to four weeks, depending on the status on the ground. After that, we’ll have a ministerial determination.
“After the ministerial determination, then we will open the accounts. After we open the accounts, then we will have elections of respective directors and chairmen of pipeline and PDL (petroleum development licence) areas. After that, the benefits will be paid.
“It is important that landowners must understand that the same precedent we did with plant site landowners will also be applied to the pipeline and PDL.”
He is hoping that the process would be sorted out before Christmas.
Meanwhile, Pok said following the successful distribution of royalty benefits to the plant site landowners, the department was focusing on the completion of the clan-vetting exercise in the other impact areas.

Proposed policy to declare revenue

Source: Loop PNG

9th October 2017.

 

The Department of Mineral Policy and Geohazards Management (DMPGH) says it is working to introduce a policy for stakeholders in the mining industry to declare any revenue received or made from mining projects.

 

Secretary Harry Kore told Loop PNG that the policy idea came about during consultations for the Revised Mining Act.

 

He said while there are reports of mining revenue generated, a lot of locals impacted by mining activities claim to not see any tangible results.

 

Kore said the policy will ensure stakeholders such as provincial governments, authorities such as the Mineral Resources Authority (MRA), Mineral Resources Development Cooperation (MRDC), as well as landowner association chairmen and landowner company CEOs declare revenue received for the benefit of all.

 

“You fail to do that and you will be held accountable and you will be penalised under the law. So it becomes a practise. Every quarter they just declare their interest. We know that so much money goes to our landowners but whether it trickles down to the peoples is another thing,” said Kore.

 

The policy idea is similar to a draft legislation currently being drawn up by the PNG Extractive Industry Transparency Initiative to make mandatory all revenue from the mineral, petroleum and gas sectors to be fully disclosed as per good governance standards.

 

Kore said they are yet to have formal discussions regarding the policy idea however, there is cooperation and the policy complements that of the work the EITI is undertaking.

 

Secretary Kore added that one of the agendas of the policy is to ensure there is sustainability in how revenue is invested back in the country.

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