Category Archives: PNG LNG

Govt committed to paying Hides LOs

Source: Loop PNG

09/12/2017

The Government is committed to paying the K35 million it promised last year to Hides landowners in Hela Province.

 

Acting Prime Minister Charles Abel however says various court cases have stopped the Government from doing so.

 

Abel said it’s a very complex issue and would like some of the court issues settled quickly so that the money is released.

 

He said numerous court issues have stalled clan vetting, which once completed, will finally see all landowners being paid their royalties.

 

“We’re committed to pay that money. We were ready to pay.  It’s the issues amongst the landowners,” he said.

 

“But hopefully we can get some clarity as soon as possible from our court system so we’re able to pay our Kikori landowners, progress the clan vetting up at Hides and even the pay out of the K35 million.”

 

Recently, Hides landowners shut access to the Hides Gas Conditioning Plant, calling on the Government to immediately settle the K35 million it committed in 2016.

 

The move forced ExxonMobil to withdraw non-essential staff from the Plant while maintaining key personnel at the site.

 

Author: Cedric Patjole

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.

Gas-powered project to be constructed

 

The National Executive Council has approved a 57.78 megawatts gas-powered project to be constructed near the LNG site outside Port Moresby.

 

 

The announcement was made by Minister for Public Enterprises and State Investments, William Duma, on Friday (Nov 10) during the ground-breaking ceremony of the Kilakila substation in Port Moresby.

 

He said the project will be constructed by an independent power producer (IPP), NiuPower Limited, a joint venture company owned by Oil Search Ltd and Kumul Petroleum Holdings Ltd.

 

 

“The electricity will be sold to PNG Power Ltd (PPL) under a power purchase agreement between PPL and NiuPower.”

 

 

Duma said the project was identified as a critical and special key infrastructure project with significant impact in meeting Port Moresby’s demand for power as well as the potential to reduce PPL’s retail tariffs throughout PNG.

 

 

“The total cost of the power plant project alone is valued at PGK375 million (US$115.1 million), to be equity funded by NiuPower to design, procure, install and commission the project,” said Duma.

 

 

He stated that in order to transfer power generated by the gas fired power plant to the Port Moresby grid, PPL will be constructing a double circuit 66 kilovolt transmission line from the power plant site to a new Gerehu substation.

 

 

“The transmission line and Gerehu substation, including any associated transmission and distribution lines expansions, will be funded by PPL at a cost of K60 million.”

 

 

Duma said the unit cost for producing power through gas compares favourably to other existing and alternative energy sources in Port Moresby.

 

 

“The average power tariff or unit cost to PPL is US$ cents per kilowatt-hour subject to fuel prices and escalation, and this is the cheapest compared to existing PPL generating sources.”

 

 

Duma said the gas fired project will be PPL’s first cost effective IPP ever negotiated by PNG Power Ltd.

 

 

Author: Meredith Kuusa via Loop PNG

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.”

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.

Govt To Unwind LNG Revenue Conditions

 

 

BY MATTHEW VARI

 

Prime Minister Peter O’Neill says his government is in the process to relook at agreements to see foreign revenues from gas sales that find their way into the country.
Responding to the foreign currency woes currently faced, he said with the continuous sale of LNG, a precursor for foreign currency inflows – the agreement signed by past governments were designed unfairly for the country to keep the funds overseas. Mr O’Neill said this when East Sepik Governor Allan Bird asked why the sale of a shipment of gas at US$50 million, every three days, could not alleviate the forex issue.

 
“They have allowed exporters and proponent, developers to park all these revenues overseas. While we are making the exports they have been allowing them to park the money overseas and the money is not coming back into the country.”

 
“That is the reason why we are not receiving enough foreign currency even though we are making the exports,” Mr O’Neill said.

 
“Agreements have been designed very unfairly for Papua New Guinea. There have been of course smart economists in the past always thought that the fear of the Dutch disease, what they call that there is too much foreign currency in the economy.”

 
He said this fear has resulted in the parking of funds outside of the country through the agreements signed by the previous regime that took the lead in the LNG negotiations.
“We are trying to unwind that, talking to some of the project developers that they must bring in foreign currency that is rightfully Papua New Guinea’s back into the country.”