Exxon allays LNG fears

By MOHAMMAD BASHIR

EXXONMOBIL Corp yesterday clarified that the national content plan for the PNG LNG project had been presented to the Government and business opportunities had been discussed with landowners in the project areas.
“In fact, we have already reached agreement with one group to create an umbrella landowner company and are working with others at this time,” ExxonMobil’s public affairs adviser Stuart Symons said.
He said ExxonMobil’s community affairs and business development representatives were active in all project areas and it was inaccurate to portray otherwise.
Mr Symons said this in response to landowner concerns that the multi-billion-kina project developer had not spelled out its content plan in time for the finalising of the BSA agreement in September.
He said during March, the PNG LNG project conducted a communication road show on national content, including workforce development and local business development, at 26 locations throughout the project area.
About 3000 people attended and some 500 were consulted through questions and comments, he said.
“Additionally, there have been numerous meetings with government officials including MPs, departments and the Prime Minister on national content,” Mr Symons said.
“During the umbrella BSA meeting, the project made a presentation on national content, workforce development and local business development.”
He added that ongoing communication with landowners about national content would be conducted through road shows and focused communication via land and community affairs village liaison officers, which would take place at the villages and not in Port Moresby.
Esso Highlands Limited, a subsidiary of ExxonMobil Corporation and operator of the PNG LNG project signed its first agreements with executives from upstream landowner companies (or Lancos, as they are known) -- Gobe Freight Services, Kikori Oil Investments and Gobe Field Engineering -- to participate in early works developments.
The service outline agreements documented the terms and pricing structure under which each Lanco and the PNG LNG project agreed to do business during the next five years. The agreements covered services which each Lanco could perform in their geographic location, such as labour hire, equipment hire, catering and freight services.
A total of 11 such agreements were planned with 10 in the area of the upstream onshore facilities (Kopi/Gobe, Kutubu, Moran and Hides) and one in the area of the LNG plant site near Port Moresby.
The major early works contract for the upstream portion of the project was last month awarded to Clough Curtain JV, a joint venture between Clough Niugini Ltd and Curtain Bros PNG Limited.
The scope of the early works contract includes civil engineering, construction and site preparation work that is required to upgrade existing infrastructure and build new infrastructure and facilities to enable full-scale construction to start early next year.