Category Archives: Petroleum

Court dismisses Kramer’s review bid

By DEMAS TIEN
The Waigani National Court has dismissed an application by Frank Kramer to review a decision by Cabinet and Prime Minister Peter O’Neill’s to remove him as director and chairman of the board of Kumul Petroleum Holdings Limited (KPHL).
Justice Colin Makail (pictured) dismissed Kramer’s judicial review case as it would have been an abuse of the court’s process because the matter was for private law and not pubic law to deal with, he said.
Justice Makail upheld arguments raised by Twivey Lawyers, representing the National Executive Council and the State, that the appropriate mode of proceedings to challenge the dismissal was by way of a writ of summons or originating summons.
“In my view, to commence and proceed by way of judicial review is an abuse of process of the court,” Justice Makail said.
The court found that the decision to dismiss Kramer was appropriately made by O’Neill as a KPHL trustee as required by the Kumul Petroleum Holdings Limited Authorisation Act 2015.
The reason given by the trustee to dismiss Kramer on March 28 was that he failed to fill many vacancies in the board.
Kramer denied the allegation and said he took steps to have the vacancies filled.
In his review, Kramer questioned the involvement of NEC because he said under the Act NEC had no role to play in the dismissal of a director or chairman of KPHL.
He said the trustee breached the Act and acted beyond its powers when it sought the approval of the NEC to endorse its decision to dismiss him.
The NEC and O’Neill, through their lawyers, argued that the decision to dismiss Kramer was not reviewable because it was made by the shareholder of a company incorporated under the Companies Act 1997, being KPHL.
They said the dispute regarding Kramer’s dismissal was of a private nature where judicial review and reinstatement were not applicable.

 

http://www.thenational.com.pg/court-dismisses-kramers-review-bid/

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Sir Moi Avei Appointed by NEC as Chair and Director of Kumul Petroleum Holdings

The Prime Minister, Hon. Peter O’Neill CMG MP, has announced that the National Executive Council has decided to remove Frank Kramer as Chair and Director of Kumul Petroleum holdings, and subsequently appointment Sir Moi Avei to these roles.

Under Kumul Legislation, the Prime Minister of the day is a shareholder in Kumul Petroleum Holdings, has input to adjust the board and facilitate the new appointment.

“The appointment of Sir Moi Avei, is very positive move for Kumul Petroleum Holdings,” the Prime Minister said.

“Sir Moi is a senior statesman with a distinguished public service and political career, who has extensive knowledge of the industry having served two terms in Cabinet as Minister for Petroleum.

“Under his leadership, Kumul Petroleum Holdings will be able to advance to the next level of development and deliver even greater outcomes for the nation.

“I would like to thank Frank Kramer for his leadership in the early stages of development, and ensuring KPH has an important role to play in the oil and gas sector of Papua New Guinea.”

PNC People’s National Congress March 30, 2017 5.24 pm

PNG ENERGY SECTOR LOOKS PROMISING

In light of a good turnout of commodity price in oil and gas internationally, now is a good time for investors to tap into the county’s energy sector.

That is the message from Prime Minister Peter O’Neill when officially launching the inaugural Petroleum and Energy Summit in Port Moresby today.

O’Neill when reflecting on the past few year said things were tough in the sector with income dropping by 80%; however, things have been improving making PNG a suitable place for investment and with the Papua LNG expected to start production sometime between 2021 and 2022, the government is optimistic about the energy sector.

“Today with the improvement in the global economy, the rebound in the commodity prices, we see positive changes taking place but we are not out of the dark yet, but there is light at the end,” the prime minister said.

Meanwhile, Petroleum and Energy Minister Nixon Duban assured current and potential investors that the government stands ready to work in partnership with them in developing the sector.

The three days summit has attracted over 200 participants, including delegates from Japanese gas companies who were at the summit this morning to highlight the market demand for gas in Japan and as well as the Asian region.

Picture: the highlight of Day 1 of the Petroleum and Energy Summit at the Stanley Hotel in Port Moresby.

Yumi FM News Tuesday 28th February 2017

K7.94b deal is on

By GYNNIE KERO

EXXONMOBIL is expected to complete the transaction for the multi-billion kina acquisition of InterOil this week after the Supreme Court of Yukon gave its approval yesterday.

According to InterOil, ExxonMobil is buying all its assets in a deal valued at US$2.5 billion (K7.94 billion).

On top of that is a contingent resource payment comprising US$7.07 per (InterOil) share for each trillion cubic feet of gas equivalent (tcfe) of gross resource certified in the Elk-Antelope field above 6.2 tcfe – up to a maximum of 10 tcfe. In June last year, Oil Search Ltd made an offer to acquire InterOil. But InterOil’s shareholders voted to accept Exxon’s offer calling it a “superior proposal”.

In a market release by InterOil yesterday, the arrangement was approved by more than 91 per cent of the shares voted at a special meeting last Tuesday and has now received all necessary approvals.

The court granted a final order approving the arrangement between InterOil and ExxonMobil.

A spokesperson for ExxonMobil told The National yesterday that the acquisition of InterOil as envisioned in the amended agreement “continues to represent a significant value to the Government and people of Papua New Guinea, as well as to InterOil shareholders”.

“ExxonMobil looks forward to closing the transaction in accordance with the plan of arrangement,” the spokesperson said.

The acquisition would add more natural gas to Exxon’s portfolio, and offer more reserves to supply for the company’s $19 billion (K58.4 billion) PNG LNG plant.

InterOil holds a 35.5 per cent of petroleum retention license (PRL) 15 of the Papua LNG project in Gulf which it had proposed as a second LNG project in the country.

The majority shareholder is French oil and gas company Total SA. Total yesterday said it had been made aware of the current InterOil and Exxon Mobil transaction status.

Managing director Philippe Blanchard told The National: “Once this transaction is completed, we will welcome ExxonMobil as our new JV (joint venture) partner on PRL-15 and the joint venture will keep progressing the Papua LNG project. The future of InterOil employees is yet to be made public although sources said some would be taken on board by ExxonMobil.

The Independent Consumer and Competition Commission which had been monitoring the transaction since it was announced yesterday that it would assess the court’s decision first before making a comment.

Commissioner and chief executive officer Paulus Ain said earlier this month that it was continuing its independent assessment on the acquisition of InterOil by ExxonMobil.

“The ICCC would like to state that the proposed transaction needed careful review before forming a view on potential adverse implications on competition in Papua New Guinea given the complexity of the different segments (upstream to downstream) of the petroleum industry (in the country) that are likely to be affected,” Ain told The National.

 

Papua New Guinea Petroleum & Energy Summit 2017

The inaugural Papua New Guinea Petroleum and Energy Summit will be held in Port Moresby on February 28-March 2.

The event, endorsed by the Ministry of Petroleum and Energy with the backing of the National Government will be held at the Stanley Hotel.

Organisers say the event has an impressive speaker line up confirmed, with several members of the Papua New Guinean Government as well as global players such as ExxonMobil and Total.

Prime Minister Peter O’Neill MP is confirmed to open the event with the keynote address.

Minister for Petroleum and Energy Nixon Duban, is part of the senior level speaker line up from the PNG Government.

Mr Duban commented: “We’re delighted to bring the countries first Petroleum and Energy Summit to Port Moresby and expect the inaugural edition to be a huge success.

“We have all of the key stakeholders from PNG and the region confirmed as speaker’s and expect some interesting debate and dialogue. I encourage all parties serious about working in PNG to attend this summit.”

Kumul Petroleum Holdings Limited (KPHL) who are also key in the staging of this event head of time announced yesterday, its managing director Wapuk Sonk, would be holding a press conference on Wednesday in relation to this major event.

Those from industry both local and overseas who are expected to attend include-Yuki Sadamitsu, director, Oil and Gas division, Ministry of Economy, Trade and Industry (METI), Peter Botten, managing director, Oil Search, Philippe Blanchard, managing director, Total E&P PNG Ltd, Brent Emmett, CEO, Horizon Oil, John Chambers, general manager- PNG, Santos, Hiroki Sato, chief fuel transaction officer and senior executive vice president, JERA Co Inc, Hiroshi Ogawa, representative director and senior executive vice president- project operations, Michael Binnion, chairman of the Board, High Arctic, Dr Fereidun Fesharaki, chairman, Facts Global Energy (FGE) Gavin Thompson and head of research- Asia Pacific, Wood Mackenzie.

summitoil

 

More equity for villagers

By GYNNIE KERO


PEOPLE from six mine area villages which host the Ok Tedi Mine Project have become the first landowners to own a larger than mandated equity share in any resource project in PNG.


This followed the signing of a benefit-sharing agreement in Alotau, Milne Bay last weekend.
It will see the six mine villages and 152 Community Mine Continuation Agreement (CMCA) villages sharing the 33 percent direct equity interest in the Ok Tedi Mining Limited.

village-equity
The other parties to the agreement are the State and the Fly River Provincial Government which will sign at a later date.


The parties present at the signing last Saturday included Chief Secretary Isaac Lupari, the Core Group leaders and representatives from the mine area villages, representatives from the CMCA region, Mineral Resource Development Company, and Mineral Resource Star Mountain, Mineral Resources Ok Tedi No. 2, Ok Tedi Mining Limited and the State representative from Mineral Resources Authority.


The National Executive Council decision relating to the granting of the free equity was made in 2014.
The benefit sharing Memorandum of Agreement (MoA) took over two years of negotiation among landowners, the Fly River provincial government and the State.


The share distribution of the 33 per cent equity will see the CMCA group owning 12 percent, the mine area villages 9 percent, the Fly River Provincial Government 12 per cent of which part of its interest will be shared with three districts (North Fly, Middle Fly and South Fly).


The percentage breakup was agreed to by parties through a share distribution agreement in July 2015.
Lupari said the villagers now had one-third direct participation.
“It is for the first time in the history of this country and it’s a big decision for the landowners to have direct participation from OTML,” Lupari said.


According to the agreement, 40 percent of the benefits from the respective shares will be paid in cash to landowners. The other 40 percent will go towards investment purposes and 20 percent towards infrastructure development programmes and projects.


“In my capacity as the chairman of MRDC, I will ensure that we look after your money well,” Lupari said.
MRDC’s managing director Augustine Mano thanked everyone involved in the signing.

 

http://www.thenational.com.pg/more-equity-for-villagers/

 

 

 

Miner reminded that ‘performance is crucial’

Miner Ramu Nico (MCC) Limited has been reminded that its investment in PNG is the single largest of Chinese origin in Papua New Guinea, and therefore its business performance was crucial.

The prompting was from China’s commercial counselor to PNG, Cai Shuizeng, following a tour of the mine’s operations in Kurumbukari and Basamuk in Madang Province recently.

“The company must bear in mind the overall situation and attach great importance to quality, safety and efficiency of this project, and to enhance the co-operation and friendship between the two nations,” Mr Cai said. Mr Cai said he was impressed with what he had seen, and commended the operators of the Ramu nickel and cobalt mine especially for achieving 100 per cent design capacity.

ramu

His delegation travelled to Madang late last month to ensure higher safety standards of operation and production, self-checks and self-rectification of all overseas Chinese enterprises including RamuNiCo Mr Cai said the results were impressive, adding that the success of the project would inevitably improve the image of China in PNG and also strengthen the two countries economic and bilateral relationship.

The delegation visited the chromite concentrate stockpile, hydraulic sluicing section, washing plate and beneficiation plant at KBK mine.

In Basamuk they toured the High Pressure Acid Leach (HPAL), neutralisation and product area acid plant, limestone plant, warehouse and wharf and deep landfill areas.

They had sought information on safety production, sales, environment protection, community construction and localisation.

The site management used the opportunity to give the visitors, an update on the mine’s performance. Chairman of RamuNiCo ZongShaoxing, vice president Zhao Deqian and Xujian received the delegation on behalf of the company, and thanked the Mr Cai for his warmness and promised to work hard in delivering the project to the stakeholders successfully.

 

http://www.postcourier.com.pg/Stories/miner-reminded-that-performance-is-crucial/#.WIBmq1N96Ul

 

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