Monday, November 9, 2009
Aust firm eyes gas plan for deals
AUSTRALIA’s largest construction company in the oil, gas and mining sector, Leighton Holdings, is eyeing PNG LNG project as a possible target for bidding.The company is already expecting A$1 billion (about K2.5 billion) worth of contracts from the Chevron-operated Gorgon LNG project in Western Australia which is running parallel with the PNG LNG project.The National also reported last week that two Malaysian companies – Wah Seong Corp Bhd (Wah Seong) and Bredero Shaw Malaysia Sdn Bhd (Bredero Shaw) – were also pre-qualified bidders keen on undertaking the coating project worth US$200 million (about K535 million) for the PNG LNG gas pipeline.Another company called, KNM Group Bhd was also considering supplying process equipment worth a few hundred million in US currency to the LNG facility.With the final investment decision only weeks away on Dec 8, there is a great excitement among potential suppliers, construction companies and service providers to grab a piece of the action.The Cairns chamber of commerce is spearheading moves to make Cairns city become the “supply hub” for the LNG project just as Darwin is to the northwest shelf and Timor gas projects. Leighton’s interest in the PNG project was revealed during the company’s annual general meeting in Australia last week.Company chairman David Mortimer told investors that its work-in-hand as at Sept 30 rose to A$38.2 billion (K94.46 billion), up A$1.2 billion (K2.97 billion) since June 30, and first quarter unaudited after-tax profit was A$130.9 million (K323.69), up from A$105 million (K325.64 million) on an annual comparison.Its end of year profit is expected to hit A$600 millin (K1.5 billion).
Positive signs to push gas project
Source:
YEHIURA HRIEHWAZI in BRISBANE
WITH the two million tonnes export deal of liquefied natural gas (LNG) under wraps, ExxonMobil has moved up the gears toward signing up more customers for the PNG LNG project.And the country will know 27 days from today if ExxonMobil will proceed with the project. All indications point to the affirmative.“We are keeping our fingers crossed,” one analyst said yesterday.After signing up the preliminary sales deal (heads of agreement) with China’s Sinopec last week, ExxonMobil is now into exclusive talks with four other major LNG buyers in Asia for binding sales contracts to underpin the project.The annual production capacity for the project is 6.6 million tonnes (mpty). The developer is now working around the clock to tie down clients for the remaining 4.6 million tonnes.It is understood that some of the potential customers currently in discussion with ExxonMobil include Japan’s Tokyo Electric, Osaka Gas Ltd and Taiwan’s CPC Corp - all combined could easily take up the PNG gas in binding sales contracts.ExxonMobil said last week it was in “exclusive talks” with four major Asian gas buyers and with the final investment decision expected on Dec 8 – just weeks away.Sinopec said in a separate statement that the LNG from the ExxonMobil project would be supplied to its Qingdao receiving terminal which will be built in the Shandong province in China.The deal, if finalised, will also be Sinopec’s first LNG purchase agreement which will support its ambitions to expand its share of the domestic gas market that is being dominated by another big gas company, PetroChina.
YEHIURA HRIEHWAZI in BRISBANE
WITH the two million tonnes export deal of liquefied natural gas (LNG) under wraps, ExxonMobil has moved up the gears toward signing up more customers for the PNG LNG project.And the country will know 27 days from today if ExxonMobil will proceed with the project. All indications point to the affirmative.“We are keeping our fingers crossed,” one analyst said yesterday.After signing up the preliminary sales deal (heads of agreement) with China’s Sinopec last week, ExxonMobil is now into exclusive talks with four other major LNG buyers in Asia for binding sales contracts to underpin the project.The annual production capacity for the project is 6.6 million tonnes (mpty). The developer is now working around the clock to tie down clients for the remaining 4.6 million tonnes.It is understood that some of the potential customers currently in discussion with ExxonMobil include Japan’s Tokyo Electric, Osaka Gas Ltd and Taiwan’s CPC Corp - all combined could easily take up the PNG gas in binding sales contracts.ExxonMobil said last week it was in “exclusive talks” with four major Asian gas buyers and with the final investment decision expected on Dec 8 – just weeks away.Sinopec said in a separate statement that the LNG from the ExxonMobil project would be supplied to its Qingdao receiving terminal which will be built in the Shandong province in China.The deal, if finalised, will also be Sinopec’s first LNG purchase agreement which will support its ambitions to expand its share of the domestic gas market that is being dominated by another big gas company, PetroChina.
LNG benefits talks can’t start: InterOil
DISCUSSIONS on benefits that would be generated from the proposed second liquefied natural gas (LNG) project are yet to start.Unless and until a project agreement was in place and a petroleum development licence (PDL) was issued, such discussions could not take place, project developer InterOil for its proposed Elk-Antelope LNG project in Wabo, Gulf province, said.This was made known to about 15 of the 17 Gulf provincial local level government presidents and other leaders recently during an audience with InterOil led by company director Christian Vinson at the Napa Napa refinery near Port Moresby.The absence of the project agreement has also reportedly delayed the front-end engineering and design (FEED) work by 21 months since January last year, according to Liquid Niugini Gas Ltd (LNGL), a company which will specialise mainly in buying dry gas from InterOil.InterOil holds 45% interest in LNGL.Most of the presidents and LLG representatives raised concerns of how the local people would benefit from the proposed project once it got underway, and what would be offered as benefits for the communities hosting the project and the nearby areas.“We need to get the project agreement and the licence to proceed and then, we can talk about who benefits and who will not.“Right now, we have nothing to work with … we need to get the Government to realise that two projects are better than one,” Mr Vinson said.InterOil and LNGL had a meeting with LLG presidents to brief them on InterOil’s preparations towards the proposed LNG project and while waiting for the project agreement and PDL.InterOil’s manager for community affairs (corporate) Geoff Hiatt updated the presidents on the progress of the preliminary social mapping and landowner identification process, both for the proposed project and the fields, and the liquid project.“We are clear about who among the people are landowners in these blocks,” he said.Mr Hiatt said the preliminary studies done included Wailala and Purari in Gulf province, and Fisherman Island (an island close to the proposed plant to be built on Napa Napa across from InterOil’s existing oil refinery).InterOil holds three petroleum prospecting licences (PPL) 236 (in Central province), 237, and 238 (discovery area at Elk-Antelope which overlaps into 237).InterOil would initially develop the Elk-Antelope gas field by the drilling of enough production wells, currently estimated at between six and 12, to supply about 650-900 million metric cubic feet of gas per day (mmcfgpd) as feedstock for a single train of 3.5mtpa to 5mtpa LNG plant.The production wells would be connected by a gas gathering system and delivery pipeline to separation and drying facilities to be located on the northern bank of Purari River, about 20km south of the gas field.
Tuesday, November 3, 2009
PNG envisages new era in ties with China
CHINESE vice-premier Li Keqiang, one of China’s most powerful men, arrived in Papua New Guinea yesterday to a rousing reception by the Chinese community in Port Moresby, including top PNG Government ministers.
Mr Li, who is “tipped” to be China’s next premiere, was accompanied by more than 40 officials that included security personnel, a physician and a nurse.
His visit is primarily seen to further strengthen China-PNG ties.
Senior PNG Government officials said the visit was also envisaged to usher in a new era of deeper relations and partnership between the two countries.
At the airport to meet Mr Li, were State Enterprises Minister Arthur Somare, Commerce and Industry Minister Gabriel Kapris and Deputy Prime Minister Sir Puka Temu.
He is scheduled to have an audience with Prime Minister Sir Michael Somare and Governor-General Sir Paulias Matane, and later sign bilateral agreements.
Last night, a State dinner was hosted in his honour by Sir Michael.
Today, he will sign bilateral agreements with the PNG Government and then attend a State luncheon hosted by Sir Puka.
After lunch, he will be briefed on the progress of the US$1.4 billion Ramu nickel project that is managed by Metallurgical Construction Group Corp.
PNG and China established official diplomatic relations in 1976, and since then continue to maintain cordial diplomatic, economic and, in small way, military ties.
China is a significant provider of investments and development aid to PNG.
Mr Li, who is known for his enthusiasm for a “harmonious society”, holds a doctorate in economics and qualifications in law.
He has frequently stressed the importance of helping the unemployed, providing affordable housing and improving access to healthcare.
Mr Li, who is “tipped” to be China’s next premiere, was accompanied by more than 40 officials that included security personnel, a physician and a nurse.
His visit is primarily seen to further strengthen China-PNG ties.
Senior PNG Government officials said the visit was also envisaged to usher in a new era of deeper relations and partnership between the two countries.
At the airport to meet Mr Li, were State Enterprises Minister Arthur Somare, Commerce and Industry Minister Gabriel Kapris and Deputy Prime Minister Sir Puka Temu.
He is scheduled to have an audience with Prime Minister Sir Michael Somare and Governor-General Sir Paulias Matane, and later sign bilateral agreements.
Last night, a State dinner was hosted in his honour by Sir Michael.
Today, he will sign bilateral agreements with the PNG Government and then attend a State luncheon hosted by Sir Puka.
After lunch, he will be briefed on the progress of the US$1.4 billion Ramu nickel project that is managed by Metallurgical Construction Group Corp.
PNG and China established official diplomatic relations in 1976, and since then continue to maintain cordial diplomatic, economic and, in small way, military ties.
China is a significant provider of investments and development aid to PNG.
Mr Li, who is known for his enthusiasm for a “harmonious society”, holds a doctorate in economics and qualifications in law.
He has frequently stressed the importance of helping the unemployed, providing affordable housing and improving access to healthcare.
Cairns in bid to become ‘supply hub’ for PNG LNG project
A special report for possible business links between Cairns and Port Moresby has been presented to senior Australian bureaucrats and government leaders in Brisbane and Canberra.
This is spurred on by the proposed multi-billion kina PNG LNG gas project opening up lots of business opportunities in which Cairns could become the brand name as the “supply hub” – in the same way as Darwin is to the Timor Sea gas projects.
Cairns business leaders are looking to PNG as the new frontier and produced a report called: Relief, recovery and reform plan presented to high-ranking government leaders in Brisbane and also in Canberra.
The Cairns Post newspaper reported on Monday three industry organisations had come together to push the “new deal” to broaden the Cairns economy.
They are Advance Cairns, Tourism Tropical North Queensland and the Cairns Chamber of Commerce.
They are calling on the Australian federal government and Queensland state government to work with them to help better identify and define the opportunities in PNG.
Advance Cairns chairman Russell Beer said the chamber and his organisation were already working on developing business opportunities, including two separate trade missions.
“More resources are needed to fund an urgent and holistic study into opportunities for Cairns region businesses to sell goods and services into PNG to take advantage of the significant developments in that country’s resources sector,” he said.
“We aim to develop the Cairns brand in PNG so that Cairns is the automatic choice for a base for Australian engagement with PNG, the same way Darwin seems automatically to be seen as the Australian access point for business with Timor Leste.
“(We need) better engagement with our closest capital city, Port Moresby, and neighbouring country PNG to allow our businesses to take advantage of the major projects to take off there.”
Mr Beer said the trade missions were the first in seven years and the slots filled quickly.
A team headed by the Cairns Chamber of Commerce is expected to visit Port Moresby this month to talk to business leaders and explore possibilities of setting up a direct shipping link between the two cities.
This is spurred on by the proposed multi-billion kina PNG LNG gas project opening up lots of business opportunities in which Cairns could become the brand name as the “supply hub” – in the same way as Darwin is to the Timor Sea gas projects.
Cairns business leaders are looking to PNG as the new frontier and produced a report called: Relief, recovery and reform plan presented to high-ranking government leaders in Brisbane and also in Canberra.
The Cairns Post newspaper reported on Monday three industry organisations had come together to push the “new deal” to broaden the Cairns economy.
They are Advance Cairns, Tourism Tropical North Queensland and the Cairns Chamber of Commerce.
They are calling on the Australian federal government and Queensland state government to work with them to help better identify and define the opportunities in PNG.
Advance Cairns chairman Russell Beer said the chamber and his organisation were already working on developing business opportunities, including two separate trade missions.
“More resources are needed to fund an urgent and holistic study into opportunities for Cairns region businesses to sell goods and services into PNG to take advantage of the significant developments in that country’s resources sector,” he said.
“We aim to develop the Cairns brand in PNG so that Cairns is the automatic choice for a base for Australian engagement with PNG, the same way Darwin seems automatically to be seen as the Australian access point for business with Timor Leste.
“(We need) better engagement with our closest capital city, Port Moresby, and neighbouring country PNG to allow our businesses to take advantage of the major projects to take off there.”
Mr Beer said the trade missions were the first in seven years and the slots filled quickly.
A team headed by the Cairns Chamber of Commerce is expected to visit Port Moresby this month to talk to business leaders and explore possibilities of setting up a direct shipping link between the two cities.
Bina Puri unit wins RM20mil job
KUALA LUMPUR: Bina Puri Construction Sdn Bhd has secured a RM19.7mil project in Mabpai, Kota Kinabalu, to build a seven-storey apartment block, a clubhouse and related infrastructure facilities.
The wholly-owned subsidiary of Bina Puri Holdings Bhd received the letter of award from Arkitek Oma Sdn Bhd for the Taman Tiara Phase One project.
Bina Puri said in a statement the construction of the 30 apartments was expected to be completed in 18 months.
Currently, the group’s order book stands at RM2.39bil as it managed to secure new projects worth RM1.41bil this year. — Bernama
The wholly-owned subsidiary of Bina Puri Holdings Bhd received the letter of award from Arkitek Oma Sdn Bhd for the Taman Tiara Phase One project.
Bina Puri said in a statement the construction of the 30 apartments was expected to be completed in 18 months.
Currently, the group’s order book stands at RM2.39bil as it managed to secure new projects worth RM1.41bil this year. — Bernama
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Phone +49 (0)4263 301 500
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http://www.tophotelprojects.com/
Dear Sirs -
Despite of credit crunch, the hotel project development is booming worldwide. More than 4,400 new first class and luxury hotels will be opened in the next years. Details to all construction projects are available on www.tophotelprojects.com, world's leading information broker for hotel development. An annual subscription is to get up from 950 Euro! Try out now for free - order your free account! Click here: www.tophotelprojects.com/free_trial.php
Attached you receive the latest issue of our recommended newsletters HOTEL MARKET BULLETIN. In the fall 2009 edition you read about famous hotel projects in Europe and Middle East, get an overview of selected hotel construction projects and get background information from guest contributors of JLL Hotels and Feuring Group.
We hope you enjoy the publication.
For any question please contact us:
Office phone - +49 (0)4263 301 500
info@tophotelprojects.com
Best regards,
Andreas Rohde
Sales Manager
Tophotelprojects GmbH
Veerser Weg 2b
27383 Scheessel, Germany
Phone +49 (0)4263 301 500
Fax +49 (0)4263 301 555
http://www.tophotelprojects.com/
Doubt over InterOil gas dismissed
INTEROIL has brushed aside doubts over the quantity of gas reserves at its Elk/Antelope field in Gulf province.
The Sydney Morning Herald reported yesterday that the Canadian oil company was facing a wave of scepticism over its plans to export liquefied natural gas (LNG) from Papua New Guinea.
The newspaper quoted Australian industry insiders and analysts who were doubtful whether InterOil had sufficient gas reserves, claiming that the InterOil-led group had no certified reserves but it had detected gas flow rates at the Elk/Antelope field that InterOil had said were the strongest recorded in PNG.
It reported that InterOil aimed to build a second LNG plant in PNG alongside ExxonMobil’s US$12.5 billion (K36 billion) venture with Oil Search.
The analysts also said InterOil had “lofty” ambitions to build a similar sized plant to export eight million tonnes of gas a year through two production units, or trains, for just US$6 billion. The company aims to sell its first shipment by 2014.
Responding to the claims, an InterOil spokesperson told The National yesterday: “There is no wave of skepticism. The Exxon-led PNG LNG project is now a US$15 billion (K40 billion) project. InterOil does not intend to build alongside Exxon. InterOil intends to build on Government-owned land on which it has a 99-year lease alongside its 100% owned oil refinery, where it has a jetty system and harbour rights to the only deep water protected port on the coastline.
“We have certified resources that can not be called proven reserves until we reach final investment decision (FID). Industry insiders and analysts understand this, it is the same for all companies,” the spokesperson said.
The Herald had reported that InterOil, in the highest-case scenario from an independent evaluator, hoped to find reserves of 4.73 trillion cubic feet (tcf), but that this looked marginal for one train, let alone two.
The InterOil spokesperson disputed this: “Our most up-to-date resource estimate, which includes the results from Antelope-1, is 6.1tcf of gas and 100 MMbbls of condensate (or 6.7 tcf) plenty enough for one train by any standard and well on the way for a two train project.”
In response to claims that the market was edgy as the geology around InterOil’s oil and gas assets was different from the area where ExxonMobil and partner Oil Search were planning their LNG plant, the spokesperson said: “The market is not edgy at all! InterOil shares have been one of the best performing stocks on the New York Stock Exchange in 2009.
“Morgan Stanley recently recommended the shares as a buy. Our reservoir is manifold better that the higher cost and lower productivity wells being drilled in the Highlands.”
The Sydney Morning Herald reported yesterday that the Canadian oil company was facing a wave of scepticism over its plans to export liquefied natural gas (LNG) from Papua New Guinea.
The newspaper quoted Australian industry insiders and analysts who were doubtful whether InterOil had sufficient gas reserves, claiming that the InterOil-led group had no certified reserves but it had detected gas flow rates at the Elk/Antelope field that InterOil had said were the strongest recorded in PNG.
It reported that InterOil aimed to build a second LNG plant in PNG alongside ExxonMobil’s US$12.5 billion (K36 billion) venture with Oil Search.
The analysts also said InterOil had “lofty” ambitions to build a similar sized plant to export eight million tonnes of gas a year through two production units, or trains, for just US$6 billion. The company aims to sell its first shipment by 2014.
Responding to the claims, an InterOil spokesperson told The National yesterday: “There is no wave of skepticism. The Exxon-led PNG LNG project is now a US$15 billion (K40 billion) project. InterOil does not intend to build alongside Exxon. InterOil intends to build on Government-owned land on which it has a 99-year lease alongside its 100% owned oil refinery, where it has a jetty system and harbour rights to the only deep water protected port on the coastline.
“We have certified resources that can not be called proven reserves until we reach final investment decision (FID). Industry insiders and analysts understand this, it is the same for all companies,” the spokesperson said.
The Herald had reported that InterOil, in the highest-case scenario from an independent evaluator, hoped to find reserves of 4.73 trillion cubic feet (tcf), but that this looked marginal for one train, let alone two.
The InterOil spokesperson disputed this: “Our most up-to-date resource estimate, which includes the results from Antelope-1, is 6.1tcf of gas and 100 MMbbls of condensate (or 6.7 tcf) plenty enough for one train by any standard and well on the way for a two train project.”
In response to claims that the market was edgy as the geology around InterOil’s oil and gas assets was different from the area where ExxonMobil and partner Oil Search were planning their LNG plant, the spokesperson said: “The market is not edgy at all! InterOil shares have been one of the best performing stocks on the New York Stock Exchange in 2009.
“Morgan Stanley recently recommended the shares as a buy. Our reservoir is manifold better that the higher cost and lower productivity wells being drilled in the Highlands.”
Exec sees long-term supply from LNG project
EXXONMobil anticipates the PNG liquefied natural gas (LNG) project will provide a long-term reliable supply of cleaner burning natural gas to help meet growing demand in the Asia Pacific region.
As the global demand growth for LNG increases by about 4% per year through to 2030, about 70 billion cubic feet a day (bcfpd), ExxonMobil expects gas suppliers who are well-positioned like PNG to be favoured in a competitive market.
Manager business planning and analysis ExxonMobil gas and power marketing Emma Cochrane said the company expected total energy demand to increase substantially by 2030, driven by economic progress and population growth.
Meeting this demand, she said, would pose many challenges, including the need for improvements in energy efficiency and developing new supplies with the help of new technology.
“We expect gas growth to be higher than primary energy as a whole and for gas to be the fastest growing conventional fuel. Growth in gas demand will primarily be driven by growing energy requirements for power generation,” Ms Cochrane told the mining and petroleum seminar in Port Moresby last week.
Ms Cochrane, who is based at the company’s headquarters in Houston, Texas, said LNG demand was expected to see significant growth in all of the major markets, growing to newly 70 billion cubic feet a day by 2030.
“By that timeframe, significant new LNG and pipeline developments will be required to meet the projected demand increase of about 150bcfpd from today and all of the major markets, but especially Europe, will need increased imported supplies.”
“Based on our outlook, there will be ample opportunity for new gas supply projects. We expect gas suppliers who are well positioned like PNG to be favored in a competitive market,” she said.
According to Ms Cochrane, LNG had a challenging and exciting future as it continued to grow in importance in the world’s energy supply nets, and PNG met all the requirements of a major supplier.
As the global demand growth for LNG increases by about 4% per year through to 2030, about 70 billion cubic feet a day (bcfpd), ExxonMobil expects gas suppliers who are well-positioned like PNG to be favoured in a competitive market.
Manager business planning and analysis ExxonMobil gas and power marketing Emma Cochrane said the company expected total energy demand to increase substantially by 2030, driven by economic progress and population growth.
Meeting this demand, she said, would pose many challenges, including the need for improvements in energy efficiency and developing new supplies with the help of new technology.
“We expect gas growth to be higher than primary energy as a whole and for gas to be the fastest growing conventional fuel. Growth in gas demand will primarily be driven by growing energy requirements for power generation,” Ms Cochrane told the mining and petroleum seminar in Port Moresby last week.
Ms Cochrane, who is based at the company’s headquarters in Houston, Texas, said LNG demand was expected to see significant growth in all of the major markets, growing to newly 70 billion cubic feet a day by 2030.
“By that timeframe, significant new LNG and pipeline developments will be required to meet the projected demand increase of about 150bcfpd from today and all of the major markets, but especially Europe, will need increased imported supplies.”
“Based on our outlook, there will be ample opportunity for new gas supply projects. We expect gas suppliers who are well positioned like PNG to be favored in a competitive market,” she said.
According to Ms Cochrane, LNG had a challenging and exciting future as it continued to grow in importance in the world’s energy supply nets, and PNG met all the requirements of a major supplier.
Multi-billion Dollar Benefit Sharing Agreement
Papua New Guinean landowners across the sites where the ExxonMobil-led Liquefied Natural Gas project will be built have signed a crucial multi-billion dollar benefit sharing agreement.
After five weeks of intense talks with up to 1000 resource owners, relevant provincial governments and PNG's national government agreed to a 20 billion kina ($9.5 billion) deal over the 30-year life span of the LNG project.
The signing secured landowners and provincial government seven per cent equity in the multi-billion dollar project.
That figure comes from PNG government's 19.4 per cent equity in the project that ExxonMobil estimates will double the country's gross domestic product through taxes and gas sales.
Southern Highlands Governor Anderson Agiru was one of the key negotiators with PNG's cabinet ministers.
"We have cut a good deal," he told PNG's National newspaper.
"This deal now sets new parameters and new benchmarks in state and landowner relations," he said.
Part of the agreement includes the PNG government committing to infrastructure and socio-economic developments in the provinces and specific licence areas.
A highway will be built from the PNG's south to the north, parallel to the pipeline that will pump gas from the Highlands region to the coast for shipping and then processing in Port Moresby.
Upgrades to other local infrastructure such as airports and townships have been agreed to as part of the deal that needed to be brokered before the whole project could move forward.
The $US12.5 billion ($16 billion) ExxonMobil-led project plans to commence gas production by 2014.
Over the weekend there were reports that China was likely to be the first major customer for the gas with PetroChina in discussions to take 3m tons a year.
After five weeks of intense talks with up to 1000 resource owners, relevant provincial governments and PNG's national government agreed to a 20 billion kina ($9.5 billion) deal over the 30-year life span of the LNG project.
The signing secured landowners and provincial government seven per cent equity in the multi-billion dollar project.
That figure comes from PNG government's 19.4 per cent equity in the project that ExxonMobil estimates will double the country's gross domestic product through taxes and gas sales.
Southern Highlands Governor Anderson Agiru was one of the key negotiators with PNG's cabinet ministers.
"We have cut a good deal," he told PNG's National newspaper.
"This deal now sets new parameters and new benchmarks in state and landowner relations," he said.
Part of the agreement includes the PNG government committing to infrastructure and socio-economic developments in the provinces and specific licence areas.
A highway will be built from the PNG's south to the north, parallel to the pipeline that will pump gas from the Highlands region to the coast for shipping and then processing in Port Moresby.
Upgrades to other local infrastructure such as airports and townships have been agreed to as part of the deal that needed to be brokered before the whole project could move forward.
The $US12.5 billion ($16 billion) ExxonMobil-led project plans to commence gas production by 2014.
Over the weekend there were reports that China was likely to be the first major customer for the gas with PetroChina in discussions to take 3m tons a year.
ExxonMobil commits $600 million to early works at PNG LNG project
Sydney (Platts)--15Jun2009
ExxonMobil has begun preliminary construction work for its 6.3 million
mt/year LNG project in Papua New Guinea, joint-venture partner Oil Search said
Monday.
The early works program, which covers a range of infrastructure projects,
will involve an investment of around $600 million over the next 12 months, and
paves the way for the start of full construction, expected in early 2010. The
work will include the upgrade and repair of roads, construction of camps,
wharf upgrades, early site preparation in the PNG Highlands, construction of
training facilities and ordering of long lead items.
The PNG project is based on gas from the Hides, Angore, Juha, Kutubu,
Agogo, Moran and Gobe fields, which is to be piped to liquefaction facilities
near the capital Port Moresby. The front-end engineering and design phase of
the project got underway in May 2008, and the project partners are targeting a
final investment decision at the end of 2009, with first LNG in 2014.
The project is currently held by operator ExxonMobil (41.5%); Oil Search
(34%); Santos (17.7%); an affiliate of Nippon Oil (5.4%); and local companies
MRDC (1.2%) and Eda Oil (0.2%). The PNG government is expected to take up a
stake of around 19-20% in the development on financial close.
"This positive early works decision follows the recent signing of the
umbrella benefits sharing agreement and substantial progress made on LNG
marketing," Oil Search said in a statement.
ExxonMobil in April reached a deal on the key terms for a heads of
agreement with a major Asian customer, understood to be Chinese giant Sinopec,
for 2 million mt/year of LNG from the PNG project. Oil Search said a further
announcement on LNG marketing was "expected to be made soon."
The benefits sharing agreement defines how the benefits of the project
will be shared between the PNG government, provincial governments, project
area landowners and local level governments, Oil Search said. The umbrella
agreement sets the framework for a series of individual license-based
agreements, to establish the final benefits distribution.
ExxonMobil earlier this month announced the award of two contracts for
early works activities, including a major construction contract for upstream
civil infrastructure to the Clough Curtain joint venture.
The decision to proceed with early works was a "major vote of confidence
in the PNG LNG project," according to Oil Search Managing Director Peter
Botten. "It demonstrates an increased level of commitment to the project by
the participants, as milestones are progressively met," he added.
--Christine Forster, christine_forster@platts.com
ExxonMobil has begun preliminary construction work for its 6.3 million
mt/year LNG project in Papua New Guinea, joint-venture partner Oil Search said
Monday.
The early works program, which covers a range of infrastructure projects,
will involve an investment of around $600 million over the next 12 months, and
paves the way for the start of full construction, expected in early 2010. The
work will include the upgrade and repair of roads, construction of camps,
wharf upgrades, early site preparation in the PNG Highlands, construction of
training facilities and ordering of long lead items.
The PNG project is based on gas from the Hides, Angore, Juha, Kutubu,
Agogo, Moran and Gobe fields, which is to be piped to liquefaction facilities
near the capital Port Moresby. The front-end engineering and design phase of
the project got underway in May 2008, and the project partners are targeting a
final investment decision at the end of 2009, with first LNG in 2014.
The project is currently held by operator ExxonMobil (41.5%); Oil Search
(34%); Santos (17.7%); an affiliate of Nippon Oil (5.4%); and local companies
MRDC (1.2%) and Eda Oil (0.2%). The PNG government is expected to take up a
stake of around 19-20% in the development on financial close.
"This positive early works decision follows the recent signing of the
umbrella benefits sharing agreement and substantial progress made on LNG
marketing," Oil Search said in a statement.
ExxonMobil in April reached a deal on the key terms for a heads of
agreement with a major Asian customer, understood to be Chinese giant Sinopec,
for 2 million mt/year of LNG from the PNG project. Oil Search said a further
announcement on LNG marketing was "expected to be made soon."
The benefits sharing agreement defines how the benefits of the project
will be shared between the PNG government, provincial governments, project
area landowners and local level governments, Oil Search said. The umbrella
agreement sets the framework for a series of individual license-based
agreements, to establish the final benefits distribution.
ExxonMobil earlier this month announced the award of two contracts for
early works activities, including a major construction contract for upstream
civil infrastructure to the Clough Curtain joint venture.
The decision to proceed with early works was a "major vote of confidence
in the PNG LNG project," according to Oil Search Managing Director Peter
Botten. "It demonstrates an increased level of commitment to the project by
the participants, as milestones are progressively met," he added.
--Christine Forster, christine_forster@platts.com
Assessing the Engine Performance of Palm Oil Biodiesel
By Mauricio Rojas
Rapeseed and soybean oil are the most-used feedstocks for biodiesel production in the European Union and the United States, respectively. However, the use of palm oil-based biodiesel is increasing due to strong production growth in tropical countries like Malaysia, Indonesia, Thailand, Nigeria and Colombia. Palm oil is a promising feedstock for biodiesel production because of its low cost and high productivity per unit of planted area.
Palm oil biodiesel, also known as palm oil methyl ester (PME), differs from other types of biodiesel in its grade of molecule unsaturation. PME is more saturated, which means it has a lower number of double carbon bonds in its molecules. For diesel engine applications, the degree of biodiesel molecule unsaturation represents a compromise. Saturated fuels such as PME have high-ignition quality. However, they also harden at higher temperatures, making them difficult to use in cold weather.
Since biodiesel is derived from renewable sources, its production and use are being promoted worldwide as a way to reduce oil dependency and decrease greenhouse gas emissions. Due to PME’s rising importance as a biodiesel feedstock, it’s important to consider its combustion and operational performance.
Rapeseed and soybean oil are the most-used feedstocks for biodiesel production in the European Union and the United States, respectively. However, the use of palm oil-based biodiesel is increasing due to strong production growth in tropical countries like Malaysia, Indonesia, Thailand, Nigeria and Colombia. Palm oil is a promising feedstock for biodiesel production because of its low cost and high productivity per unit of planted area.
Palm oil biodiesel, also known as palm oil methyl ester (PME), differs from other types of biodiesel in its grade of molecule unsaturation. PME is more saturated, which means it has a lower number of double carbon bonds in its molecules. For diesel engine applications, the degree of biodiesel molecule unsaturation represents a compromise. Saturated fuels such as PME have high-ignition quality. However, they also harden at higher temperatures, making them difficult to use in cold weather.
Since biodiesel is derived from renewable sources, its production and use are being promoted worldwide as a way to reduce oil dependency and decrease greenhouse gas emissions. Due to PME’s rising importance as a biodiesel feedstock, it’s important to consider its combustion and operational performance.
KAML eyes US, Australia for new ventures
KINA Assets Management Ltd (KAML) has identified investment opportunities in the US and Australian markets apart from those found in the country.
Its domestic investments included the acquiring of equities listed on Australian Securities Exchange (ASX) and Port Moresby Stock Exchange (POMSoX).
KAML chairman Sir Rabbie Namaliu revealed this while announcing the start of its long-term investment strategy where KAML also acquired new assets in a range of global funds.
He said KAML continued its declared strategy of assessing a broad range of investment opportunities locally and globally;
Sir Rabbie said in the past two months, they decided to move into global funds market with some strategic acquisitions.
“Some key opportunities have been identified within the US markets, and also in Australia and in the domestic scene … and we have acted on those recommendations,” he said.
Sir Rabbie said there were signs of the start of recovery in some key economic sectors and that it was opportune for KAML to move into the equities market.
KAML had started the acquisition programme following its successful launch last July, but ceased the programme in the third quarter, diverting a large percentage of its investment funds into the more secure money market sector with a range of fixed deposits.
Its domestic investments included the acquiring of equities listed on Australian Securities Exchange (ASX) and Port Moresby Stock Exchange (POMSoX).
KAML chairman Sir Rabbie Namaliu revealed this while announcing the start of its long-term investment strategy where KAML also acquired new assets in a range of global funds.
He said KAML continued its declared strategy of assessing a broad range of investment opportunities locally and globally;
Sir Rabbie said in the past two months, they decided to move into global funds market with some strategic acquisitions.
“Some key opportunities have been identified within the US markets, and also in Australia and in the domestic scene … and we have acted on those recommendations,” he said.
Sir Rabbie said there were signs of the start of recovery in some key economic sectors and that it was opportune for KAML to move into the equities market.
KAML had started the acquisition programme following its successful launch last July, but ceased the programme in the third quarter, diverting a large percentage of its investment funds into the more secure money market sector with a range of fixed deposits.
LNG boom ‘to put stress on facilities’
By SHEILA LASIBORI
THE Port Moresby Chamber of Commerce and Industry (PoMCCI) has expressed concern that the liquefied natural gas (LNG) projects would put a lot of stress on the limited capacity of infrastructure and facilties such as airports and road network.
And catering for the inflows of of expatriate workers would surely put pressure on airport facilities and accommodations, the chamber said.
“The influx of foreign workers as a consequence of the LNG project is only going to place more demands on our infrastructure and services, specifically the international and domestic airports, which are struggling now to cope with traffic.
“How could Jackson international airport possibly handle another 7,000 expatriate workers on a fly in, fly out basis?” Ken Dunn, the outgoing president of POMCCI, asked.
Mr Dunn expressed the chamber’s concern as he announced its plan to move soon to a new 600sqm office at the “Bizcentre” at Burns Philip building in Port Moresby which is now undergoing renovation.
“Then, there is the question over the capacity of the harbour facility being able to handle the large increase in freight arriving in the country and the added burden this will place on the roads around the centre for business development (CBD)”.
Mr Dunn noted the limited infrastructure especially in Port Moresby where the National Capital District Commission (NCDC) was struggling to cope with a growing metropolis.
“Other non-governmental organisations (NGOs) had tentatively agreed to sub-lease available space in the Bizcentre which would see the establishment of a ‘one stop shop’ providing services to the business community.
“However, even with the current shortage of available commercial space, we do not anticipate any difficulty is sub-leasing the space we will not require,” he said yesterday during POMCCI’s 54th annual general meeting in Port Moresby.
Ron Seddon (Leasemaster) was elected POMCCI’s new president for the next 12 months.
THE Port Moresby Chamber of Commerce and Industry (PoMCCI) has expressed concern that the liquefied natural gas (LNG) projects would put a lot of stress on the limited capacity of infrastructure and facilties such as airports and road network.
And catering for the inflows of of expatriate workers would surely put pressure on airport facilities and accommodations, the chamber said.
“The influx of foreign workers as a consequence of the LNG project is only going to place more demands on our infrastructure and services, specifically the international and domestic airports, which are struggling now to cope with traffic.
“How could Jackson international airport possibly handle another 7,000 expatriate workers on a fly in, fly out basis?” Ken Dunn, the outgoing president of POMCCI, asked.
Mr Dunn expressed the chamber’s concern as he announced its plan to move soon to a new 600sqm office at the “Bizcentre” at Burns Philip building in Port Moresby which is now undergoing renovation.
“Then, there is the question over the capacity of the harbour facility being able to handle the large increase in freight arriving in the country and the added burden this will place on the roads around the centre for business development (CBD)”.
Mr Dunn noted the limited infrastructure especially in Port Moresby where the National Capital District Commission (NCDC) was struggling to cope with a growing metropolis.
“Other non-governmental organisations (NGOs) had tentatively agreed to sub-lease available space in the Bizcentre which would see the establishment of a ‘one stop shop’ providing services to the business community.
“However, even with the current shortage of available commercial space, we do not anticipate any difficulty is sub-leasing the space we will not require,” he said yesterday during POMCCI’s 54th annual general meeting in Port Moresby.
Ron Seddon (Leasemaster) was elected POMCCI’s new president for the next 12 months.
Landowners ‘conned’ on LNG deals
*Hides village leader claims Govt failed to get best benefits for them
THE Government has failed to get a best deal for the country and the affected landowners, Hides landowner leader Simon Ekanda said.
In a five page statement, Mr Ekanda has alleged that certain provisions of the Oil and Gas Act had been breached.
He said section 115 of the Organic Law on Provincial and LLG and section 52 of the Oil and Gas Act, which provided for consultation among parties affected in a resource development project prior to entering into an agreement, had been ignored.
“The Government had compromised with the project proponents to the prejudice of very important provisions of two very important laws,” Mr Ekanda said.
He said pursuant to Section 165 of the Oil and Gas Act, the Government was suppose to secure 22.5% State participating equity in the PNG LNG project.
“It had totally failed to negotiate with the project proponents that the LNG project is a new petroleum project and therefore it is entitled to acquire 22.5%.”
“What a pity that the Government was too soft to accept 19.4%.”
Mr Ekanda said leading up to the negotiation of the LNG Gas agreement, the project proponents had asked for amendments to specific provisions of the Oil and Gas Act to give special rights to them to begin early works well before important issues were discussed and agreed in a development forum.
“Starting early works before the signing of an important agreement during a development forum pursuant to Section 48 of the Oil and Gas Act unnecessarily put pressure on the beneficiaries (affected landowners, LLG’s, provincial government and even National Government) to support the project even the terms were to the disadvantage of the host country and its citizens.”
Mr Ekanda also said the gas agreement also provided too many incentives to the LNG project proponents.
He said another contentious issue is the social mapping and landowner identification as provided for by the Oil and Gas Act.
“Licensee must undertake full-scale social mapping and landowner identification studies prior to the granting of a petroleum development licence. He said ExxonMobil and Oil Search must admit that they had failed to conduct these studies. 30 June 2009
THE Government has failed to get a best deal for the country and the affected landowners, Hides landowner leader Simon Ekanda said.
In a five page statement, Mr Ekanda has alleged that certain provisions of the Oil and Gas Act had been breached.
He said section 115 of the Organic Law on Provincial and LLG and section 52 of the Oil and Gas Act, which provided for consultation among parties affected in a resource development project prior to entering into an agreement, had been ignored.
“The Government had compromised with the project proponents to the prejudice of very important provisions of two very important laws,” Mr Ekanda said.
He said pursuant to Section 165 of the Oil and Gas Act, the Government was suppose to secure 22.5% State participating equity in the PNG LNG project.
“It had totally failed to negotiate with the project proponents that the LNG project is a new petroleum project and therefore it is entitled to acquire 22.5%.”
“What a pity that the Government was too soft to accept 19.4%.”
Mr Ekanda said leading up to the negotiation of the LNG Gas agreement, the project proponents had asked for amendments to specific provisions of the Oil and Gas Act to give special rights to them to begin early works well before important issues were discussed and agreed in a development forum.
“Starting early works before the signing of an important agreement during a development forum pursuant to Section 48 of the Oil and Gas Act unnecessarily put pressure on the beneficiaries (affected landowners, LLG’s, provincial government and even National Government) to support the project even the terms were to the disadvantage of the host country and its citizens.”
Mr Ekanda also said the gas agreement also provided too many incentives to the LNG project proponents.
He said another contentious issue is the social mapping and landowner identification as provided for by the Oil and Gas Act.
“Licensee must undertake full-scale social mapping and landowner identification studies prior to the granting of a petroleum development licence. He said ExxonMobil and Oil Search must admit that they had failed to conduct these studies. 30 June 2009
Three China Oil Giants ' Profits Forecast to Fall 31.3%
Mon. February 16, 2009; Posted: 07:11 AM
BEIJING, Feb 16, 2009 (SinoCast Daily Business Beat via COMTEX) -- SNP | Quote | Chart | News | PowerRating -- China's three biggest oil giants are predicted to have gained profits of CNY 222.8 billion last year with a drop of 31.3 percent year on year.
The amount marked a new low in recent years due to the drastic drop of oil prices in 2008. China Petroleum & Chemical Corp. (Sinopec, SEHK: 0386 and SHSE: 600028), under the wing of China Petrochemical Corporation (Sinopec Group), one of the Big Three, predicted on January 23, 2009 that its 2008 net profits would slump more than 50 percent, told previous reports.
China National Offshore Oil Corp. (CNOOC), another one on the Big Three list, gained profits of nearly USD 10 billion in 2008, disclosed its president Fu Yucheng.
If the changing exchange rate is not taken into account, the profits jumped more than 20 percent from 2007 when its profits totaled USD 7.86 billion. CNOOC, parent of CNOOC Ltd. (NYSE: CEO; SEHK: 0883), reaped sales revenues of USD 29 billion in 2008, rising 22.4 percent year on year, according to the preliminary statistics.
In fact, the whole petrochemical industry witnessed a negative growth in December 2008, which marks that the industry has been on the decline after an about-10-year fast growth.
The Chinese government is to unveil the petrochemical industry adjustment and revitalization plan, which advises the country to separately store 3 million tons, 6 million tons, and 10 million ton of refined oil from 2009 to 2010.
Sinopec Group and China National Petroleum Corporation (CNPC), also one of the three biggest oil producers, are preparing for refined oil reserves, because the fuel prices hover around a low level.
The Chinese government will earmark CNY 100 billion for the upgrading of refined oil products and about CNY 400 billion for the construction of 20 new related projects in 2009 and 2010, said sources. The CNY 100 billion will possibly be offered by CNPC and Sinopec Group, guessed they.
This year, the country will put CNY 60 billion into the quality improvement of 60-million-ton gasoline in accordance with the National Emission Standard Phase III and Phase VI.
Next year, it will inject CNY 40 billion into the quality upgrading of 60-million-ton diesel oil to meet the III and Phase VI standards, which require low sulfur.
Sinopec Group pointed out that domestic retail oil prices would become stable, once it expanded refined oil reserves when the fuel prices stood at USD 40 per barrel.
(USD 1 = CNY 6.84)
Source: www.cnstock.com (February 16, 2009)
For full details on China Petroleum & Chemical Corporation ADS (SNP) click here. China Petroleum & Chemical Corporation ADS (SNP) has Short Term PowerRatings of 5. Details on China Petroleum & Chemical Corporation ADS (SNP) Short Term PowerRatings is available at This Link.
BEIJING, Feb 16, 2009 (SinoCast Daily Business Beat via COMTEX) -- SNP | Quote | Chart | News | PowerRating -- China's three biggest oil giants are predicted to have gained profits of CNY 222.8 billion last year with a drop of 31.3 percent year on year.
The amount marked a new low in recent years due to the drastic drop of oil prices in 2008. China Petroleum & Chemical Corp. (Sinopec, SEHK: 0386 and SHSE: 600028), under the wing of China Petrochemical Corporation (Sinopec Group), one of the Big Three, predicted on January 23, 2009 that its 2008 net profits would slump more than 50 percent, told previous reports.
China National Offshore Oil Corp. (CNOOC), another one on the Big Three list, gained profits of nearly USD 10 billion in 2008, disclosed its president Fu Yucheng.
If the changing exchange rate is not taken into account, the profits jumped more than 20 percent from 2007 when its profits totaled USD 7.86 billion. CNOOC, parent of CNOOC Ltd. (NYSE: CEO; SEHK: 0883), reaped sales revenues of USD 29 billion in 2008, rising 22.4 percent year on year, according to the preliminary statistics.
In fact, the whole petrochemical industry witnessed a negative growth in December 2008, which marks that the industry has been on the decline after an about-10-year fast growth.
The Chinese government is to unveil the petrochemical industry adjustment and revitalization plan, which advises the country to separately store 3 million tons, 6 million tons, and 10 million ton of refined oil from 2009 to 2010.
Sinopec Group and China National Petroleum Corporation (CNPC), also one of the three biggest oil producers, are preparing for refined oil reserves, because the fuel prices hover around a low level.
The Chinese government will earmark CNY 100 billion for the upgrading of refined oil products and about CNY 400 billion for the construction of 20 new related projects in 2009 and 2010, said sources. The CNY 100 billion will possibly be offered by CNPC and Sinopec Group, guessed they.
This year, the country will put CNY 60 billion into the quality improvement of 60-million-ton gasoline in accordance with the National Emission Standard Phase III and Phase VI.
Next year, it will inject CNY 40 billion into the quality upgrading of 60-million-ton diesel oil to meet the III and Phase VI standards, which require low sulfur.
Sinopec Group pointed out that domestic retail oil prices would become stable, once it expanded refined oil reserves when the fuel prices stood at USD 40 per barrel.
(USD 1 = CNY 6.84)
Source: www.cnstock.com (February 16, 2009)
For full details on China Petroleum & Chemical Corporation ADS (SNP) click here. China Petroleum & Chemical Corporation ADS (SNP) has Short Term PowerRatings of 5. Details on China Petroleum & Chemical Corporation ADS (SNP) Short Term PowerRatings is available at This Link.
Special terms eyed for marine park investors
*Talks in progress on conditions of joining in US$300m Madang facility
By SHEILA LASIBORI
PAPUA New Guinea will have to look at special conditions before it could allow its Pacific Island Countries (PICs) neighbours to bring their labour and capital to the proposed US$300 million (K803 million Pacific marine industrial zone (PMIZ) in Madang province.
This is to avoid possible hitches and to make it easier for marine park participants to remit profits back home, Minister for Commerce and Industry Gabriel Kapris said.
While Mr Kapris was not yet in a position to explain what these “special conditions” were, he told The National yesterday discussions were still continuing on the “specific arrangements” on PMIZ.
He said the special conditions being referred to would be discussed further with fellow Pacific Island leaders during the next Pacific Islands forum fisheries agency (FFA) meeting.
But what formed the basis of arrangements between PNG as host for the PMIZ and those who would be transporting their tuna catch was the Pacific Nauru agreement (PNA).
The Nauru agreement is a sub-regional accord on terms and conditions for tuna purse seine fishing licence in the region.
The parties to the Nauru agreement are Federated States of Micronesia (FSM), Kiribati, Marshall Islands, Nauru, Palau, PNG, Solomon Islands and Tuvalu.
During the groundbreaking ceremony of PMIZ two weeks ago, Mr Kapris said the project would cost over US$300 million (K803 million) to complete.
Once completed the facility would include building a wharf and jetty, a fish market, cold storage, ship repair and dry-dock facilities, public utilities, civil works, standard factory buildings and wharf houses, service areas, container depot, residential facilities, schools, supermarkets, government agencies and many other support and ancillary facilities.
He reaffirmed the support of development partners such as World Bank, Asian Development Bank, European Union, the Chinese and Japanese governments and the National Government which allocated K29 million in the budget and a further K210 million, from the Export Import Bank of China.
“I will soon be proceeding to China to finalise the drawdown of that loan so that works could start on the civil works component of the project,” he had said.
By SHEILA LASIBORI
PAPUA New Guinea will have to look at special conditions before it could allow its Pacific Island Countries (PICs) neighbours to bring their labour and capital to the proposed US$300 million (K803 million Pacific marine industrial zone (PMIZ) in Madang province.
This is to avoid possible hitches and to make it easier for marine park participants to remit profits back home, Minister for Commerce and Industry Gabriel Kapris said.
While Mr Kapris was not yet in a position to explain what these “special conditions” were, he told The National yesterday discussions were still continuing on the “specific arrangements” on PMIZ.
He said the special conditions being referred to would be discussed further with fellow Pacific Island leaders during the next Pacific Islands forum fisheries agency (FFA) meeting.
But what formed the basis of arrangements between PNG as host for the PMIZ and those who would be transporting their tuna catch was the Pacific Nauru agreement (PNA).
The Nauru agreement is a sub-regional accord on terms and conditions for tuna purse seine fishing licence in the region.
The parties to the Nauru agreement are Federated States of Micronesia (FSM), Kiribati, Marshall Islands, Nauru, Palau, PNG, Solomon Islands and Tuvalu.
During the groundbreaking ceremony of PMIZ two weeks ago, Mr Kapris said the project would cost over US$300 million (K803 million) to complete.
Once completed the facility would include building a wharf and jetty, a fish market, cold storage, ship repair and dry-dock facilities, public utilities, civil works, standard factory buildings and wharf houses, service areas, container depot, residential facilities, schools, supermarkets, government agencies and many other support and ancillary facilities.
He reaffirmed the support of development partners such as World Bank, Asian Development Bank, European Union, the Chinese and Japanese governments and the National Government which allocated K29 million in the budget and a further K210 million, from the Export Import Bank of China.
“I will soon be proceeding to China to finalise the drawdown of that loan so that works could start on the civil works component of the project,” he had said.
Oil palm growers enjoying top price
*PNG palm oil considered one of the best in market
By SHEILA LASIBORI
LOCAL oil palm growers have had a very promising year despite a drop in global prices on Papua New Guinea’s agriculture commodities that included oil palm.
Local selling price for the palm has been increasing since January and it is predicted that it would continue to do so.
One reason and probably the main one has been the awarding of “roundtable on sustainable palm oil” certificate to oil palm companies, Otto Pukam, who is the manager for National Government’s Bialla Oil Palm project in West News Britain province, said.
He said the sustainable practices exercised country-wide led to the progress on oil palm sales because the palm was accepted at the global markets as their value was backed by the accreditation.
According to Mr Pukam, who spoke to The National from Bialla’s Oil Palm Industry Corp (OPIC) office, the 2,291 growers (mainly smallholders) in Bialla earned K13.3 million in total sales from January to May-end from their 13,869.8ha which produced 82,000 tonnes of the fruit.
Vigy Ponnudurai, general manager for CTP Cargill Group’s Higaturu Oil Palms (HOP) Co in Oro province, said yesterday oil palm prices had been increasing on the global markets, so the price for the palm sold by growers has been increasing too.
HOP has built a second mill at its Sumbiripa estate which is only waiting for the turbines to be brought from Colombo before it can start processing.
But the operational Mamba mill, which used to process 600 tonnes per day, was now processing 250 tonnes because of the unavailability of the bridge across the Kumusi River following the 2007 floods, preventing growers to transport their palms to the mill, he said.
Meanwhile, the Popondetta OPIC office says it will not be allowing any new oil palm projects.
“Because it is a new development and we do not have the money for such developments,” Graydon Hanguru, OPIC’s field manager, said.
He said with the construction of the new mill, growers would be working hard to sell more of their oil palm, adding that OPIC coordinated 5,707 growers who owned blocks that supplied mostly to HOP.
According to Mr Hanguru, selling prices for the last six months were: January – K91.36 per tonne; February – K117/tonne; March – K126.85/tonne; April – K150/tonne; May – K180/tonne. Last month, it was – K199.02/tonne.
By SHEILA LASIBORI
LOCAL oil palm growers have had a very promising year despite a drop in global prices on Papua New Guinea’s agriculture commodities that included oil palm.
Local selling price for the palm has been increasing since January and it is predicted that it would continue to do so.
One reason and probably the main one has been the awarding of “roundtable on sustainable palm oil” certificate to oil palm companies, Otto Pukam, who is the manager for National Government’s Bialla Oil Palm project in West News Britain province, said.
He said the sustainable practices exercised country-wide led to the progress on oil palm sales because the palm was accepted at the global markets as their value was backed by the accreditation.
According to Mr Pukam, who spoke to The National from Bialla’s Oil Palm Industry Corp (OPIC) office, the 2,291 growers (mainly smallholders) in Bialla earned K13.3 million in total sales from January to May-end from their 13,869.8ha which produced 82,000 tonnes of the fruit.
Vigy Ponnudurai, general manager for CTP Cargill Group’s Higaturu Oil Palms (HOP) Co in Oro province, said yesterday oil palm prices had been increasing on the global markets, so the price for the palm sold by growers has been increasing too.
HOP has built a second mill at its Sumbiripa estate which is only waiting for the turbines to be brought from Colombo before it can start processing.
But the operational Mamba mill, which used to process 600 tonnes per day, was now processing 250 tonnes because of the unavailability of the bridge across the Kumusi River following the 2007 floods, preventing growers to transport their palms to the mill, he said.
Meanwhile, the Popondetta OPIC office says it will not be allowing any new oil palm projects.
“Because it is a new development and we do not have the money for such developments,” Graydon Hanguru, OPIC’s field manager, said.
He said with the construction of the new mill, growers would be working hard to sell more of their oil palm, adding that OPIC coordinated 5,707 growers who owned blocks that supplied mostly to HOP.
According to Mr Hanguru, selling prices for the last six months were: January – K91.36 per tonne; February – K117/tonne; March – K126.85/tonne; April – K150/tonne; May – K180/tonne. Last month, it was – K199.02/tonne.
Oil palm growers enjoying top price
*PNG palm oil considered one of the best in market
By SHEILA LASIBORI
LOCAL oil palm growers have had a very promising year despite a drop in global prices on Papua New Guinea’s agriculture commodities that included oil palm.
Local selling price for the palm has been increasing since January and it is predicted that it would continue to do so.
One reason and probably the main one has been the awarding of “roundtable on sustainable palm oil” certificate to oil palm companies, Otto Pukam, who is the manager for National Government’s Bialla Oil Palm project in West News Britain province, said.
He said the sustainable practices exercised country-wide led to the progress on oil palm sales because the palm was accepted at the global markets as their value was backed by the accreditation.
According to Mr Pukam, who spoke to The National from Bialla’s Oil Palm Industry Corp (OPIC) office, the 2,291 growers (mainly smallholders) in Bialla earned K13.3 million in total sales from January to May-end from their 13,869.8ha which produced 82,000 tonnes of the fruit.
Vigy Ponnudurai, general manager for CTP Cargill Group’s Higaturu Oil Palms (HOP) Co in Oro province, said yesterday oil palm prices had been increasing on the global markets, so the price for the palm sold by growers has been increasing too.
HOP has built a second mill at its Sumbiripa estate which is only waiting for the turbines to be brought from Colombo before it can start processing.
But the operational Mamba mill, which used to process 600 tonnes per day, was now processing 250 tonnes because of the unavailability of the bridge across the Kumusi River following the 2007 floods, preventing growers to transport their palms to the mill, he said.
Meanwhile, the Popondetta OPIC office says it will not be allowing any new oil palm projects.
“Because it is a new development and we do not have the money for such developments,” Graydon Hanguru, OPIC’s field manager, said.
He said with the construction of the new mill, growers would be working hard to sell more of their oil palm, adding that OPIC coordinated 5,707 growers who owned blocks that supplied mostly to HOP.
According to Mr Hanguru, selling prices for the last six months were: January – K91.36 per tonne; February – K117/tonne; March – K126.85/tonne; April – K150/tonne; May – K180/tonne. Last month, it was – K199.02/tonne.
By SHEILA LASIBORI
LOCAL oil palm growers have had a very promising year despite a drop in global prices on Papua New Guinea’s agriculture commodities that included oil palm.
Local selling price for the palm has been increasing since January and it is predicted that it would continue to do so.
One reason and probably the main one has been the awarding of “roundtable on sustainable palm oil” certificate to oil palm companies, Otto Pukam, who is the manager for National Government’s Bialla Oil Palm project in West News Britain province, said.
He said the sustainable practices exercised country-wide led to the progress on oil palm sales because the palm was accepted at the global markets as their value was backed by the accreditation.
According to Mr Pukam, who spoke to The National from Bialla’s Oil Palm Industry Corp (OPIC) office, the 2,291 growers (mainly smallholders) in Bialla earned K13.3 million in total sales from January to May-end from their 13,869.8ha which produced 82,000 tonnes of the fruit.
Vigy Ponnudurai, general manager for CTP Cargill Group’s Higaturu Oil Palms (HOP) Co in Oro province, said yesterday oil palm prices had been increasing on the global markets, so the price for the palm sold by growers has been increasing too.
HOP has built a second mill at its Sumbiripa estate which is only waiting for the turbines to be brought from Colombo before it can start processing.
But the operational Mamba mill, which used to process 600 tonnes per day, was now processing 250 tonnes because of the unavailability of the bridge across the Kumusi River following the 2007 floods, preventing growers to transport their palms to the mill, he said.
Meanwhile, the Popondetta OPIC office says it will not be allowing any new oil palm projects.
“Because it is a new development and we do not have the money for such developments,” Graydon Hanguru, OPIC’s field manager, said.
He said with the construction of the new mill, growers would be working hard to sell more of their oil palm, adding that OPIC coordinated 5,707 growers who owned blocks that supplied mostly to HOP.
According to Mr Hanguru, selling prices for the last six months were: January – K91.36 per tonne; February – K117/tonne; March – K126.85/tonne; April – K150/tonne; May – K180/tonne. Last month, it was – K199.02/tonne.
WB allots US$58.8b to battle global crisis
WASHINGTON: The World Bank said on Wednesday it had allocated a record US$58.8 billion (K157.43 billion) in the fiscal year just ended as it scrambled to help countries cope with the global economic crisis.
The commitment in the 2009 fiscal year ended June 30 marked a 54% increase over the previous year and “a record high” for the global development institution, the bank said.
“Requests for assistance from the World Bank Group rose sharply this year, and we expect this to continue well into next year, as the pace of recovery is far from certain,” World Bank president Robert Zoellick, said.
“Millions of people are still suffering, and we must continue to help countries safeguard priority expenditures, including on essential infrastructure, investment in human capital, and social safety nets, or we will further jeopardize hard-fought gains over recent years in overcoming poverty,” he said.
For this year, the bank supported 767 projects to promote economic growth, fight poverty, and assist private businesses.
It included US$20.7 billion (K55.42 billion) in infrastructure financing, a critical sector to provide the foundation for rapid recovery from the crisis and job creation, the bank said in a statement. – AFP 6 July 2009
The commitment in the 2009 fiscal year ended June 30 marked a 54% increase over the previous year and “a record high” for the global development institution, the bank said.
“Requests for assistance from the World Bank Group rose sharply this year, and we expect this to continue well into next year, as the pace of recovery is far from certain,” World Bank president Robert Zoellick, said.
“Millions of people are still suffering, and we must continue to help countries safeguard priority expenditures, including on essential infrastructure, investment in human capital, and social safety nets, or we will further jeopardize hard-fought gains over recent years in overcoming poverty,” he said.
For this year, the bank supported 767 projects to promote economic growth, fight poverty, and assist private businesses.
It included US$20.7 billion (K55.42 billion) in infrastructure financing, a critical sector to provide the foundation for rapid recovery from the crisis and job creation, the bank said in a statement. – AFP 6 July 2009
China groups may bid for Iraqi oil fields
BEIJING: China’s three largest oil companies may take part in Iraq’s second auction of oil and gas fields, as the Asian giant seeks to strengthen its foothold in the oil-rich nation, state media said yesterday.
The country’s top oil producer China National Petroleum Corp (CNPC), Asia’s largest refiner Sinopec, and China National Offshore Oil Corp, all bid last week in Iraq’s first auction of oil contracts since 2003, the China Daily said.
Only CNPC, in a tie-up with British energy giant BP, won a service contract to develop the Rumaila oil field, which was also the only contract awarded in the auction.
CNPC and Sinopec may take part in the second auction, reported to be scheduled for the end of this year, as they “cannot neglect the rich oil and gas reserves in Iraq”, the China Daily said, citing an unnamed source.
Fu Chengyu, president of China National Offshore Oil Corp, has said that the company might participate in the second round of bidding as well, the report added.
“Domestic oil companies will not miss this unprecedented opportunity,” the source said, adding the firms may again join forces with foreign companies for the second round of bidding to reduce risk.
China has been active in gaining a share in the oil market in Iraq, which has the world’s third largest proven petroleum reserves.
Service contracts offered by Baghdad are based on companies accepting a fixed fee for the oil or gas extracted rather than an equity stake. – AFP 8 July 2009
The country’s top oil producer China National Petroleum Corp (CNPC), Asia’s largest refiner Sinopec, and China National Offshore Oil Corp, all bid last week in Iraq’s first auction of oil contracts since 2003, the China Daily said.
Only CNPC, in a tie-up with British energy giant BP, won a service contract to develop the Rumaila oil field, which was also the only contract awarded in the auction.
CNPC and Sinopec may take part in the second auction, reported to be scheduled for the end of this year, as they “cannot neglect the rich oil and gas reserves in Iraq”, the China Daily said, citing an unnamed source.
Fu Chengyu, president of China National Offshore Oil Corp, has said that the company might participate in the second round of bidding as well, the report added.
“Domestic oil companies will not miss this unprecedented opportunity,” the source said, adding the firms may again join forces with foreign companies for the second round of bidding to reduce risk.
China has been active in gaining a share in the oil market in Iraq, which has the world’s third largest proven petroleum reserves.
Service contracts offered by Baghdad are based on companies accepting a fixed fee for the oil or gas extracted rather than an equity stake. – AFP 8 July 2009
PNG venue of 2010 LNG meet
PAPUA New Guinea will host the next world liquefied natural gas (LNG) summit in the middle of next year (2010), National Planning and District Development Minister Paul Tiensten said.
This would coincide with the start of the construction phase of the ExxonMobil-led LNG project, he said.
The decision for PNG to host the next LNG summit was reached during the recent next generation of LNG Asia-Pacific conference in Singapore from June 29 to July 1 this year.
During the event, Mr Tiensten also delivered the keynote address when he talked about the LNG project and how revenues from this project would be managed to deliver economic development for the country.
“Organisers of the world conference on LNG had accepted our offer for PNG to host the next conference to coincide with our PNG LNG project reaching an historic milestone as an emerging LNG player amongst the exclusive club of LNG exporters or suppliers.”
Prime Minister Sir Michael Somare is expected to address the conference. 10 July 2009
This would coincide with the start of the construction phase of the ExxonMobil-led LNG project, he said.
The decision for PNG to host the next LNG summit was reached during the recent next generation of LNG Asia-Pacific conference in Singapore from June 29 to July 1 this year.
During the event, Mr Tiensten also delivered the keynote address when he talked about the LNG project and how revenues from this project would be managed to deliver economic development for the country.
“Organisers of the world conference on LNG had accepted our offer for PNG to host the next conference to coincide with our PNG LNG project reaching an historic milestone as an emerging LNG player amongst the exclusive club of LNG exporters or suppliers.”
Prime Minister Sir Michael Somare is expected to address the conference. 10 July 2009
Machines for Sepik oil palm estate
By GABRIEL FITO
THE first shipment of machineries for the multi-million kina Turubu oil palm project in East Sepik province, reached the shores of Turubu on Monday.
The K118 million project will cover 121,000ha on the Sepik plains.
The investor is planning 55 major plantations, each having 30,000 oil palm trees, making it possibly the biggest oil palm estate in the country.
Included on the ship that anchored outside the village were 12 bulldozers, a grader and excavator, a log loader, four jinkers, a water truck and five Toyota hilux and land cruiser vehicles.
Turubu local level government president David Kausik said the arrival of the ship with heavy equipment machineries had proved that years of negotiations between the joint venture partners, the Government and the Turubu landowners was not a waste.
Speaking during the signing of the deed of release at the Turubu village to allow machineries to be off loaded at the village, Mr Kausik said “development comes with sacrifices”.
He said the people must be commended for their part in allowing development to take place on their land.
Mr Kausik thanked them for their understanding and perseverance throughout the 15 years of planning and negotiations.
“It was all paper work over the last 15 years … we had 13 public gatherings where the project was discussed with the people.
“After all these hurdles, the ship has now arrived with machineries … its action now,” Mr Kausik said.
Landowner company Limawo Holding Ltd deputy chairman Martin Shukwei urged the people to continue giving the same support to the joint venture partners as the project goes into its implementation stage.
Deputy provincial administrator corporate services Michael Sino, former provincial police boss Leo Kabilo and Chinese investor Joseph Tang of Wewak Agriculture Development Ltd also attended the ceremony.
The ceremony also saw the presentation of K30,000 to three landowner groups from the Turubu bay by Limawo Holdings and WADL as a token of appreciation for allowing the ship to berth and off load machineries. 15 July 2009
THE first shipment of machineries for the multi-million kina Turubu oil palm project in East Sepik province, reached the shores of Turubu on Monday.
The K118 million project will cover 121,000ha on the Sepik plains.
The investor is planning 55 major plantations, each having 30,000 oil palm trees, making it possibly the biggest oil palm estate in the country.
Included on the ship that anchored outside the village were 12 bulldozers, a grader and excavator, a log loader, four jinkers, a water truck and five Toyota hilux and land cruiser vehicles.
Turubu local level government president David Kausik said the arrival of the ship with heavy equipment machineries had proved that years of negotiations between the joint venture partners, the Government and the Turubu landowners was not a waste.
Speaking during the signing of the deed of release at the Turubu village to allow machineries to be off loaded at the village, Mr Kausik said “development comes with sacrifices”.
He said the people must be commended for their part in allowing development to take place on their land.
Mr Kausik thanked them for their understanding and perseverance throughout the 15 years of planning and negotiations.
“It was all paper work over the last 15 years … we had 13 public gatherings where the project was discussed with the people.
“After all these hurdles, the ship has now arrived with machineries … its action now,” Mr Kausik said.
Landowner company Limawo Holding Ltd deputy chairman Martin Shukwei urged the people to continue giving the same support to the joint venture partners as the project goes into its implementation stage.
Deputy provincial administrator corporate services Michael Sino, former provincial police boss Leo Kabilo and Chinese investor Joseph Tang of Wewak Agriculture Development Ltd also attended the ceremony.
The ceremony also saw the presentation of K30,000 to three landowner groups from the Turubu bay by Limawo Holdings and WADL as a token of appreciation for allowing the ship to berth and off load machineries. 15 July 2009
Banking sector lacks competition
*Govt wants NDB to become a commercial bank: Pruaitch
By TRAVERTZ MABONE
UNHAPPY with the current structure of the country’s financial market, the Government said it wanted to see the sector open up for more competition.
This was made known by Minister for Treasury and Finance Patrick Pruaitch at the presentation of the National Development Banks’ annual reports last Monday.
Mr Pruaitch said he was very pleased to receive the annual reports for 2002-2008 from the NDB.
He said: “It is a very significant milestone in the progress the bank has made from insolvency and the chaotic state of affairs of the bank in 2004.”
Mr Pruaitch said as minister responsible for NDB, he would be seeking support from the Government to provide NDB with capital to develop a microbank, and then up-scale to a full-fledged commercial bank.
He said the Government wanted to see the financial sector open up for more competition.
Mr Pruaitch also disclosed the Government’s commitment to funding NDB in next year’s budget as a lead agency in helping the Government empower Papua New Guineans to generate wealth along its “wealth creation pillar” set under the national strategic plan for 2010-50.
“With the emergence of new technology including branchless banking, I am confident if rightly supported, NDB can really be our bank like PNG Banking Corp used to be.”
Lauding the NDB board and management, Mr Pruaitch noted their time-consuming, skillful and arduous efforts to resurrect the bank.
Earlier, NDB said it was seeking a licence from the Government to be able to operate a microbank.
Managing director Richard Maru said under this set up, they would be able to provide savings accounts and various other banking services to ordinary Papua New Guineans. 16 July 2009
By TRAVERTZ MABONE
UNHAPPY with the current structure of the country’s financial market, the Government said it wanted to see the sector open up for more competition.
This was made known by Minister for Treasury and Finance Patrick Pruaitch at the presentation of the National Development Banks’ annual reports last Monday.
Mr Pruaitch said he was very pleased to receive the annual reports for 2002-2008 from the NDB.
He said: “It is a very significant milestone in the progress the bank has made from insolvency and the chaotic state of affairs of the bank in 2004.”
Mr Pruaitch said as minister responsible for NDB, he would be seeking support from the Government to provide NDB with capital to develop a microbank, and then up-scale to a full-fledged commercial bank.
He said the Government wanted to see the financial sector open up for more competition.
Mr Pruaitch also disclosed the Government’s commitment to funding NDB in next year’s budget as a lead agency in helping the Government empower Papua New Guineans to generate wealth along its “wealth creation pillar” set under the national strategic plan for 2010-50.
“With the emergence of new technology including branchless banking, I am confident if rightly supported, NDB can really be our bank like PNG Banking Corp used to be.”
Lauding the NDB board and management, Mr Pruaitch noted their time-consuming, skillful and arduous efforts to resurrect the bank.
Earlier, NDB said it was seeking a licence from the Government to be able to operate a microbank.
Managing director Richard Maru said under this set up, they would be able to provide savings accounts and various other banking services to ordinary Papua New Guineans. 16 July 2009
PNG, Phils ink MoU on fisheries projects
PAPUA New Guinea and the Philippines have concluded a wide-ranging fisheries agreement which included livelihood creation for ordinary Papua New Guineans and strategies to further access the European fish market.
The National Fisheries Authority (NFA) announced this yesterday when it signed a memorandum of understanding (MoU) with the bureau of fisheries and aquatic resources (BFAR) of the Philippines to carry out fisheries co-operation projects between the two countries.
However, it noted that certain laws, in relation to processing of fisheries products, made access to EU markets harder but hoped that the MoU would open up new opportunities
NFA managing director Sylvester Pokajam said at the signing in Port Moresby the MoU gave effect to the understanding reached in the Philippines last March between Fisheries Minister Ben Semri and agriculture secretary Arthur Yap.
Mr Pokajam said yesterday’s signing paved way for aquaculture development, fish-milling, sea-caging, fish terraces in the highlands, post harvest training, market access (particularly EU market) and competency-based skills training for local fishermen and general fish processing and packaging processes.
“This is a formal arrangement to recognise what we already have and what we need to do, particularly in aquaculture because it is the next important fishery project in the Philippines and we in PNG will be moving into that soon,” he said.
“The NFA and the BFAR are both EU-accredited and competent authorities which give both countries the leverage and mandate to eliminate problems and create harmonious relationship, especially with the EU market.”
BFAR director Malcolm Sarmiento Jr, signed the MoU on behalf of the Philippines.
The National Fisheries Authority (NFA) announced this yesterday when it signed a memorandum of understanding (MoU) with the bureau of fisheries and aquatic resources (BFAR) of the Philippines to carry out fisheries co-operation projects between the two countries.
However, it noted that certain laws, in relation to processing of fisheries products, made access to EU markets harder but hoped that the MoU would open up new opportunities
NFA managing director Sylvester Pokajam said at the signing in Port Moresby the MoU gave effect to the understanding reached in the Philippines last March between Fisheries Minister Ben Semri and agriculture secretary Arthur Yap.
Mr Pokajam said yesterday’s signing paved way for aquaculture development, fish-milling, sea-caging, fish terraces in the highlands, post harvest training, market access (particularly EU market) and competency-based skills training for local fishermen and general fish processing and packaging processes.
“This is a formal arrangement to recognise what we already have and what we need to do, particularly in aquaculture because it is the next important fishery project in the Philippines and we in PNG will be moving into that soon,” he said.
“The NFA and the BFAR are both EU-accredited and competent authorities which give both countries the leverage and mandate to eliminate problems and create harmonious relationship, especially with the EU market.”
BFAR director Malcolm Sarmiento Jr, signed the MoU on behalf of the Philippines.
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.
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.
Railway proposal before Parliament
By Gorethy Kenneth/pc
PARLIAMENT was given notice yesterday for the proposed introduction of railways as an alternative means of transport for Papua New Guinea.
The notice of motion came from National Capital District Governor Powes Parkop who said this new mode of transport would help with the current growing number of people in the country.
Yesterday his motion was read by the Clerk of Parliament for the Bill to be enacted.
It read: “Mr Speaker, I give notice- that I shall move that this Parliament recognises railways as an alternative mode of transport in Papua New Guinea and accordingly call upon the National Government to:
• ENDORSE a feasibility study for two pilot projects for a railway network to connect Kerema in Gulf Province with Port Moresby and Alotau in Milne Bay and from Lae in Morobe Province to Kassam Pass and Madang
• THE Engineering Department of the Papua New Guinea University of Technology be engaged to do a feasibility study on these two projects in view of the study that they have already undertaken previously into this mode of transport.
• Consider the project as a priority and provide adequate funding or the feasibility study to commence immediately
• Seek funding from international donors for technical assistance for the project and engage into dialogue with possible investors and donors to secure funding for the two pilot rail projects in the country and
• Encourage affected Provincial Governments to provide support to the two projects particularly Gulf, Milne Bay, Morobe, Madang and the National Capital District Commission to ensure that this pilot project is implemented as soon as possible. 17 July 2009
PARLIAMENT was given notice yesterday for the proposed introduction of railways as an alternative means of transport for Papua New Guinea.
The notice of motion came from National Capital District Governor Powes Parkop who said this new mode of transport would help with the current growing number of people in the country.
Yesterday his motion was read by the Clerk of Parliament for the Bill to be enacted.
It read: “Mr Speaker, I give notice- that I shall move that this Parliament recognises railways as an alternative mode of transport in Papua New Guinea and accordingly call upon the National Government to:
• ENDORSE a feasibility study for two pilot projects for a railway network to connect Kerema in Gulf Province with Port Moresby and Alotau in Milne Bay and from Lae in Morobe Province to Kassam Pass and Madang
• THE Engineering Department of the Papua New Guinea University of Technology be engaged to do a feasibility study on these two projects in view of the study that they have already undertaken previously into this mode of transport.
• Consider the project as a priority and provide adequate funding or the feasibility study to commence immediately
• Seek funding from international donors for technical assistance for the project and engage into dialogue with possible investors and donors to secure funding for the two pilot rail projects in the country and
• Encourage affected Provincial Governments to provide support to the two projects particularly Gulf, Milne Bay, Morobe, Madang and the National Capital District Commission to ensure that this pilot project is implemented as soon as possible. 17 July 2009
Nasfund: K78.2m H1 profit
THE National Superannuation Fund (Nasfund) has recorded an unaudited first-half profit before tax of K78.234 million.
And the fund has continued to maintain strong performance, according to Nasfund in its monthly newsletter.
The fund grew by K123.6 million, or 8.4%, over the first six months of this year.
It said the net asset value grew from K1,467.8 million to K1,591.5 million during the period.
Nasfund said more than 16,000 members were now receiving credit balance status through their cell phones while the number of member-employers is now 56.
Total reserves amounted to 4.12% of the net asset value of the fund, or K65 million, and by last month, 9,076 people joined Eda Supa.
According to the newsletter, the PNG economy remained healthy.
“While much reliance for solid growth rests on the liquefied natural gas (LNG) project, many analysts have been too quick to focus on this as the sole reasons for our buoyancy,” Nasfund said.
“World attention has gathered momentum on PNG as the nation increasingly is being seen as a place to do business,” it said. 20 July 2009
And the fund has continued to maintain strong performance, according to Nasfund in its monthly newsletter.
The fund grew by K123.6 million, or 8.4%, over the first six months of this year.
It said the net asset value grew from K1,467.8 million to K1,591.5 million during the period.
Nasfund said more than 16,000 members were now receiving credit balance status through their cell phones while the number of member-employers is now 56.
Total reserves amounted to 4.12% of the net asset value of the fund, or K65 million, and by last month, 9,076 people joined Eda Supa.
According to the newsletter, the PNG economy remained healthy.
“While much reliance for solid growth rests on the liquefied natural gas (LNG) project, many analysts have been too quick to focus on this as the sole reasons for our buoyancy,” Nasfund said.
“World attention has gathered momentum on PNG as the nation increasingly is being seen as a place to do business,” it said. 20 July 2009
B’ville keen on Chinese ventures
By PETERSON TSERAHA
AUTONOMOUS Bougainville Government (ABG) President James Tanis has supported a call for Chinese investment in the region.
Mr Tanis said that former Bougainville Governor John Momis’s call for Bougainville to consider China as an investment partner made a lot of business sense.
Mr Tanis said this when he welcomed Mr Momis home for a visit after four years as Papua New Guinea’s ambassador to the People’s Republic of China,
Mr Momis, known as the “father of the PNG Constitution”, is the third Bougainvillean to serve in PNG’s overseas missions since independence. The first was Sir Alexis Sarei who served as ambassador to the United States in New York followed by the late Peter Tsiamalili, who served in Fiji and Brussels.
Mr Tanis said that many countries were looking towards China for investment opportunities and PNG should do likewise.
He said that he was also interested in engaging China’s assistance in the agriculture sector.
Mr Tanis said however that, his government needed a clearly defined foreign investment policy that would act as a guide in line with the Bougainville peace agreement and the National Government understanding of the process of drawing down of powers to Bougainville.
He said the Bougainville executive council of which he is chairman, met on Friday to consider matters relating to the region’s economic and foreign investment policy.
The council also discussed funding of a business seminar for national and foreign participants.
Mr Tanis said the seminar was being organised by the division of commerce and industry and he hoped that resolutions from the meeting would form the basis of the ABG’s economic and investment policy.
AUTONOMOUS Bougainville Government (ABG) President James Tanis has supported a call for Chinese investment in the region.
Mr Tanis said that former Bougainville Governor John Momis’s call for Bougainville to consider China as an investment partner made a lot of business sense.
Mr Tanis said this when he welcomed Mr Momis home for a visit after four years as Papua New Guinea’s ambassador to the People’s Republic of China,
Mr Momis, known as the “father of the PNG Constitution”, is the third Bougainvillean to serve in PNG’s overseas missions since independence. The first was Sir Alexis Sarei who served as ambassador to the United States in New York followed by the late Peter Tsiamalili, who served in Fiji and Brussels.
Mr Tanis said that many countries were looking towards China for investment opportunities and PNG should do likewise.
He said that he was also interested in engaging China’s assistance in the agriculture sector.
Mr Tanis said however that, his government needed a clearly defined foreign investment policy that would act as a guide in line with the Bougainville peace agreement and the National Government understanding of the process of drawing down of powers to Bougainville.
He said the Bougainville executive council of which he is chairman, met on Friday to consider matters relating to the region’s economic and foreign investment policy.
The council also discussed funding of a business seminar for national and foreign participants.
Mr Tanis said the seminar was being organised by the division of commerce and industry and he hoped that resolutions from the meeting would form the basis of the ABG’s economic and investment policy.
Landowners to push for security and catering contracts with ExxonMobil
By SHEILA LASIBORI
INCORPORATED land groups in Southern Highlands province have vowed to push for security and catering contracts in the upcoming liquefied natural gas (LNG) project.
They claimed recently they have been providing security for the last 15 years at project sites and have been trained in catering so they are prepared to provide these services and give jobs to the locals, Tony Kila, a land group leader from Moran, said.
He also called on project developer ExxonMobil to reveal the gas project’s national content plan (NCP), especially right down to the respective project sites.
“When will they put this plan in Hides and here (Kutubu) so we can see?” he asked during the inauguration of the Trans Wonderland Ltd (TWL), a transport company owned by landowners which won a three-year contract from Oil Search Ltd – the second major partner in the LNG project.
Another leader, Lamsen Mapiria from Hides, also called on project developers and investors to travel to the project sites and deal with the landowners.
“They do not have to hang around in Port Moresby’s hotels entertaining individual landowner companies.
“They must look at the people, the project areas and visit the site because whatever the revenue that they generate from the projects will benefit the landowners and safeguard the projects … if they do not do that, then the project’s security is at risk,” Mr Mapiria said.
However, Esso Highlands Ltd, a subsidiary of ExxonMobil and operator of the project, said: “The national content plan of the project has been provided to the Government and business opportunities have been discussed with landowners in project areas.
“In fact, we have already reached an agreement with one group to create an umbrella landowner company and are working with others at this time,” Stuart Symons, a spokesman for Esso, said in response to the claims.
Mr Symons said apart from several meetings with Government officials on the plan, more talks with landowners on the issue would continue through road shows where community affairs village liaison officers would lead.
“These communication exercises would take place in the villages and not in Port Moresby,” Mr Symons said.
Samuel Koyama, manager for upstream field community affairs at Kutubu, had said the plan had three parts: 1) the supply development which covered business development; 2) the workforce development which looked at how nationals could be employed on the project including jobs on contract; and 3) the strategic community investment.
INCORPORATED land groups in Southern Highlands province have vowed to push for security and catering contracts in the upcoming liquefied natural gas (LNG) project.
They claimed recently they have been providing security for the last 15 years at project sites and have been trained in catering so they are prepared to provide these services and give jobs to the locals, Tony Kila, a land group leader from Moran, said.
He also called on project developer ExxonMobil to reveal the gas project’s national content plan (NCP), especially right down to the respective project sites.
“When will they put this plan in Hides and here (Kutubu) so we can see?” he asked during the inauguration of the Trans Wonderland Ltd (TWL), a transport company owned by landowners which won a three-year contract from Oil Search Ltd – the second major partner in the LNG project.
Another leader, Lamsen Mapiria from Hides, also called on project developers and investors to travel to the project sites and deal with the landowners.
“They do not have to hang around in Port Moresby’s hotels entertaining individual landowner companies.
“They must look at the people, the project areas and visit the site because whatever the revenue that they generate from the projects will benefit the landowners and safeguard the projects … if they do not do that, then the project’s security is at risk,” Mr Mapiria said.
However, Esso Highlands Ltd, a subsidiary of ExxonMobil and operator of the project, said: “The national content plan of the project has been provided to the Government and business opportunities have been discussed with landowners in project areas.
“In fact, we have already reached an agreement with one group to create an umbrella landowner company and are working with others at this time,” Stuart Symons, a spokesman for Esso, said in response to the claims.
Mr Symons said apart from several meetings with Government officials on the plan, more talks with landowners on the issue would continue through road shows where community affairs village liaison officers would lead.
“These communication exercises would take place in the villages and not in Port Moresby,” Mr Symons said.
Samuel Koyama, manager for upstream field community affairs at Kutubu, had said the plan had three parts: 1) the supply development which covered business development; 2) the workforce development which looked at how nationals could be employed on the project including jobs on contract; and 3) the strategic community investment.
Landowners to push for security and catering contracts with ExxonMobil
By SHEILA LASIBORI
INCORPORATED land groups in Southern Highlands province have vowed to push for security and catering contracts in the upcoming liquefied natural gas (LNG) project.
They claimed recently they have been providing security for the last 15 years at project sites and have been trained in catering so they are prepared to provide these services and give jobs to the locals, Tony Kila, a land group leader from Moran, said.
He also called on project developer ExxonMobil to reveal the gas project’s national content plan (NCP), especially right down to the respective project sites.
“When will they put this plan in Hides and here (Kutubu) so we can see?” he asked during the inauguration of the Trans Wonderland Ltd (TWL), a transport company owned by landowners which won a three-year contract from Oil Search Ltd – the second major partner in the LNG project.
Another leader, Lamsen Mapiria from Hides, also called on project developers and investors to travel to the project sites and deal with the landowners.
“They do not have to hang around in Port Moresby’s hotels entertaining individual landowner companies.
“They must look at the people, the project areas and visit the site because whatever the revenue that they generate from the projects will benefit the landowners and safeguard the projects … if they do not do that, then the project’s security is at risk,” Mr Mapiria said.
However, Esso Highlands Ltd, a subsidiary of ExxonMobil and operator of the project, said: “The national content plan of the project has been provided to the Government and business opportunities have been discussed with landowners in project areas.
“In fact, we have already reached an agreement with one group to create an umbrella landowner company and are working with others at this time,” Stuart Symons, a spokesman for Esso, said in response to the claims.
Mr Symons said apart from several meetings with Government officials on the plan, more talks with landowners on the issue would continue through road shows where community affairs village liaison officers would lead.
“These communication exercises would take place in the villages and not in Port Moresby,” Mr Symons said.
Samuel Koyama, manager for upstream field community affairs at Kutubu, had said the plan had three parts: 1) the supply development which covered business development; 2) the workforce development which looked at how nationals could be employed on the project including jobs on contract; and 3) the strategic community investment.
INCORPORATED land groups in Southern Highlands province have vowed to push for security and catering contracts in the upcoming liquefied natural gas (LNG) project.
They claimed recently they have been providing security for the last 15 years at project sites and have been trained in catering so they are prepared to provide these services and give jobs to the locals, Tony Kila, a land group leader from Moran, said.
He also called on project developer ExxonMobil to reveal the gas project’s national content plan (NCP), especially right down to the respective project sites.
“When will they put this plan in Hides and here (Kutubu) so we can see?” he asked during the inauguration of the Trans Wonderland Ltd (TWL), a transport company owned by landowners which won a three-year contract from Oil Search Ltd – the second major partner in the LNG project.
Another leader, Lamsen Mapiria from Hides, also called on project developers and investors to travel to the project sites and deal with the landowners.
“They do not have to hang around in Port Moresby’s hotels entertaining individual landowner companies.
“They must look at the people, the project areas and visit the site because whatever the revenue that they generate from the projects will benefit the landowners and safeguard the projects … if they do not do that, then the project’s security is at risk,” Mr Mapiria said.
However, Esso Highlands Ltd, a subsidiary of ExxonMobil and operator of the project, said: “The national content plan of the project has been provided to the Government and business opportunities have been discussed with landowners in project areas.
“In fact, we have already reached an agreement with one group to create an umbrella landowner company and are working with others at this time,” Stuart Symons, a spokesman for Esso, said in response to the claims.
Mr Symons said apart from several meetings with Government officials on the plan, more talks with landowners on the issue would continue through road shows where community affairs village liaison officers would lead.
“These communication exercises would take place in the villages and not in Port Moresby,” Mr Symons said.
Samuel Koyama, manager for upstream field community affairs at Kutubu, had said the plan had three parts: 1) the supply development which covered business development; 2) the workforce development which looked at how nationals could be employed on the project including jobs on contract; and 3) the strategic community investment.
Second LNG project soon, says Minister
By ROBERT PALME
THE Government is expected to sign another major LNG project in the Gulf Province in about three weeks.
Petroleum and Energy Minister William Duma told a small crowd this at the Tega primary school on Saturday.
Mr Duma later told the Post-Courier that this project was big enough to justify one LNG project.
The project, which is around the size of the Southern Highlands project, is being developed by the InterOil.
Meanwhile, he told the crowd that the current laws were working in our favour as no Papua New Guinean had the capacity to explore the resources.
The Minister said it cost K10 million to dig one well and that did not mean that the resource, be it oil, gas or any other that there would be findings of resources.
Mr Duma said with the current findings, it was bringing in much needed finance and providing jobs for hundreds or thousands.
However, when Papua New Guinean companies were able to finance such explorations, Papua New Guineans would able to find and develop resources.
He said this adding that the laws gave the company that found the resource 100 ownership and the Government would buy only 25 per cent into the discovery.
Mr Duma said $US14 billion would be spent on the LNG project in the Southern Highlands and the country would benefit immensely.
He said this when challenging Western Highlanders to provide the environment conducive for people from other parts from the region, especially the Southern Highlanders and Engans to spend their money in Mount Hagen. 21 July 2009
THE Government is expected to sign another major LNG project in the Gulf Province in about three weeks.
Petroleum and Energy Minister William Duma told a small crowd this at the Tega primary school on Saturday.
Mr Duma later told the Post-Courier that this project was big enough to justify one LNG project.
The project, which is around the size of the Southern Highlands project, is being developed by the InterOil.
Meanwhile, he told the crowd that the current laws were working in our favour as no Papua New Guinean had the capacity to explore the resources.
The Minister said it cost K10 million to dig one well and that did not mean that the resource, be it oil, gas or any other that there would be findings of resources.
Mr Duma said with the current findings, it was bringing in much needed finance and providing jobs for hundreds or thousands.
However, when Papua New Guinean companies were able to finance such explorations, Papua New Guineans would able to find and develop resources.
He said this adding that the laws gave the company that found the resource 100 ownership and the Government would buy only 25 per cent into the discovery.
Mr Duma said $US14 billion would be spent on the LNG project in the Southern Highlands and the country would benefit immensely.
He said this when challenging Western Highlanders to provide the environment conducive for people from other parts from the region, especially the Southern Highlanders and Engans to spend their money in Mount Hagen. 21 July 2009
Hydro power, glass factory set for Oro
By SIMON ERORO
A GLASS factory is being proposed in the Oro Province after the Divune hydro electric scheme is completed and is fully operational.
A visit last week by the Czech ambassador to Papua New Guinea Dr Jan Fury and consul general Robert Wong to the proposed project sites in Waju cemented the understanding between the Czech Republic and Oro Province.
Dr Fury said the Czech Republic was well known throughout the world for its skills in designs and constructions in technologies, hydro power technologies (huge plants and also small scale hydro projects suitable for rural areas.
Dr Fury said his country was also known for its technology and equipment for glass factories, food production technologies and equipment and solidarity on these projects should ensure early success.
He said the relationship between the Czech Republic and the Oro Provincial Government must be maintained and enhanced, especially the interest shown by the province in inviting the Czech Republic to develop the two proposed projects.
“In this way, the two projects, the Divune hydro scheme and the proposed glass factory can materialise,” Dr Fury said.
The Vice-Minister for Public Service and Member for Sohe Anthony Nene said the Divune hydro project was a viable business venture that would meet its own operational costs.
Mr Nene said the glass factory project was dependent on the hydro power project.
“It must first be constructed and start supplying the rapidly growing permanent market in the National Capital District of power and water before the second project starts,” he said.
Mr Nene said the project would need several governments to interact to develop a realistic ap-proach.
“The hydro project is self sustaining and the borrowings can be repaid by the permanent income to be received for electricity and water, both are renewable, not just by name, by the users and residents in NCD and the rural people in Central Province, even Milne Bay and Lae,” Mr Nene said. He added that the expansion of commerce and business in the province had been restricted by the cost of electricity.
The proposed hydro project would boost economic development and also provide employment opportunities, he said.
A GLASS factory is being proposed in the Oro Province after the Divune hydro electric scheme is completed and is fully operational.
A visit last week by the Czech ambassador to Papua New Guinea Dr Jan Fury and consul general Robert Wong to the proposed project sites in Waju cemented the understanding between the Czech Republic and Oro Province.
Dr Fury said the Czech Republic was well known throughout the world for its skills in designs and constructions in technologies, hydro power technologies (huge plants and also small scale hydro projects suitable for rural areas.
Dr Fury said his country was also known for its technology and equipment for glass factories, food production technologies and equipment and solidarity on these projects should ensure early success.
He said the relationship between the Czech Republic and the Oro Provincial Government must be maintained and enhanced, especially the interest shown by the province in inviting the Czech Republic to develop the two proposed projects.
“In this way, the two projects, the Divune hydro scheme and the proposed glass factory can materialise,” Dr Fury said.
The Vice-Minister for Public Service and Member for Sohe Anthony Nene said the Divune hydro project was a viable business venture that would meet its own operational costs.
Mr Nene said the glass factory project was dependent on the hydro power project.
“It must first be constructed and start supplying the rapidly growing permanent market in the National Capital District of power and water before the second project starts,” he said.
Mr Nene said the project would need several governments to interact to develop a realistic ap-proach.
“The hydro project is self sustaining and the borrowings can be repaid by the permanent income to be received for electricity and water, both are renewable, not just by name, by the users and residents in NCD and the rural people in Central Province, even Milne Bay and Lae,” Mr Nene said. He added that the expansion of commerce and business in the province had been restricted by the cost of electricity.
The proposed hydro project would boost economic development and also provide employment opportunities, he said.
Tuvalu vows to be energy renewable by 2020
THE tiny island nation of Tuvalu, already under threat from rising seas caused by global warming, has vowed to do its part for climate change by fuelling its economy entirely from renewable sources by 2020.
The South Pacific nation of 12,000 people is part of a movement of countries and cities committed to going climate neutral. Since February 2008, 10 nations including New Zealand, Pakistan, Iceland and Costa Rica have vowed to reduce their emissions of greenhouse gases as part of a goal of reaching zero emissions in the next decade.
None of these commitments alone is expected to make a significant difference in the fight to cut heat-trapping gases. But the United Nations and many environmentalists say the moves can inspire bigger emitters like the United States and China to take bolder steps to limit their carbon footprints.
“In a sense, they are paving the way for medium and larger economies which have to move if we are going combat climate change,” said Nick Nuttal, spokesman for the United Nations Environment Program. It sponsors the Climate Neutral Network, a group of 100 governments, non-government groups and companies looking to cut their greenhouse gas emissions.
Tuvalu hopes to replace the fossil fuels that it imports by ship with solar energy and wind power, a project that it expects will cost $20 million. The country, which is just 26 square kilometres in size with most of its land less than a metre above sea level, releases almost no greenhouse gases.
So far, Tuvalu has installed a 40 kilowatt solar energy system with the help of Japan’s Kansai Electric Power Co. and Tokyo Electric Power Company. 22 July 2009
The South Pacific nation of 12,000 people is part of a movement of countries and cities committed to going climate neutral. Since February 2008, 10 nations including New Zealand, Pakistan, Iceland and Costa Rica have vowed to reduce their emissions of greenhouse gases as part of a goal of reaching zero emissions in the next decade.
None of these commitments alone is expected to make a significant difference in the fight to cut heat-trapping gases. But the United Nations and many environmentalists say the moves can inspire bigger emitters like the United States and China to take bolder steps to limit their carbon footprints.
“In a sense, they are paving the way for medium and larger economies which have to move if we are going combat climate change,” said Nick Nuttal, spokesman for the United Nations Environment Program. It sponsors the Climate Neutral Network, a group of 100 governments, non-government groups and companies looking to cut their greenhouse gas emissions.
Tuvalu hopes to replace the fossil fuels that it imports by ship with solar energy and wind power, a project that it expects will cost $20 million. The country, which is just 26 square kilometres in size with most of its land less than a metre above sea level, releases almost no greenhouse gases.
So far, Tuvalu has installed a 40 kilowatt solar energy system with the help of Japan’s Kansai Electric Power Co. and Tokyo Electric Power Company. 22 July 2009
OSL’s US$483.2m buffer cash for H1 cash
OIL Search Ltd now sits on an estimated buffer cash of US$483.2 million (K1,019.4 million) for the first half of this year ending last month.
This is US$402.1 million (K848.3 million) for the June quarter and US$481.1 million (K1,015 million) from the March quarter, an estimated 16% drop in the cash position.
Although the first half performance was scheduled for release to the markets next month, Oil Search managing director Peter Botten briefly outlined that key cash outflows for second quarter included US$51.8 million (K109.3 million) spent on ExxonMobil-led PNG liquefied natural gas (LNG) project’s front-end engineering and design (FEED), US$28.8 million (K60.8 million) on other exploration activities and US$52.1 million (K109.1 million) on development work.
He said also said due to the introduction of an underwritten dividend reinvestment plan (DRP), there was no outflow of cash relating to the payment of the 2008 final dividend of US$0.04 per share during the quarter.
As per second quarter results, Mr Botten, said: “Oil market conditions improved significantly during the second quarter of this year, with a strong rally in oil prices.
“The average oil price realised was US$55.57 (K117.24) per barrel, compared to US$45.83 (K96.69) per barrel in the previous quarter.
“This year’s second quarter production was 1.91 million barrels of oil equivalent net to Oil Search, up slightly from the previous quarter.
“Strong production performance was achieved in the Kutubu field, underpinned by good rates from the new Usano development wells.”
While giving a sneak preview of Oil Search’s performance in the first half of this year, Mr Botten said there were a several items that were expected to impact the first half profit.
“Oil inventory at the end of last month totalled 420,000 barrels,” he said .
25 July 2009
This is US$402.1 million (K848.3 million) for the June quarter and US$481.1 million (K1,015 million) from the March quarter, an estimated 16% drop in the cash position.
Although the first half performance was scheduled for release to the markets next month, Oil Search managing director Peter Botten briefly outlined that key cash outflows for second quarter included US$51.8 million (K109.3 million) spent on ExxonMobil-led PNG liquefied natural gas (LNG) project’s front-end engineering and design (FEED), US$28.8 million (K60.8 million) on other exploration activities and US$52.1 million (K109.1 million) on development work.
He said also said due to the introduction of an underwritten dividend reinvestment plan (DRP), there was no outflow of cash relating to the payment of the 2008 final dividend of US$0.04 per share during the quarter.
As per second quarter results, Mr Botten, said: “Oil market conditions improved significantly during the second quarter of this year, with a strong rally in oil prices.
“The average oil price realised was US$55.57 (K117.24) per barrel, compared to US$45.83 (K96.69) per barrel in the previous quarter.
“This year’s second quarter production was 1.91 million barrels of oil equivalent net to Oil Search, up slightly from the previous quarter.
“Strong production performance was achieved in the Kutubu field, underpinned by good rates from the new Usano development wells.”
While giving a sneak preview of Oil Search’s performance in the first half of this year, Mr Botten said there were a several items that were expected to impact the first half profit.
“Oil inventory at the end of last month totalled 420,000 barrels,” he said .
25 July 2009
BSP retail banking makes ‘zero’ profit
By MOHAMMAD BASHIR,5 August 2009
BANK South Pacific’s retail banking operations currently make “zero’ profit, managing director Ian Clyne revealed yesterday.
He said only six of the bank’s 35 branches were profitable.
Mr Clyne, who took over as chief executive of PNG’s largest commercial bank late last year, was responding to public criticism of “new” bank fees.
He said BSP had not undertaken any comprehensive fee review and increase for more than two years, including the majority of its service fees, despite a significant increase in operational and security costs over this period.
The current fee structure was similar to the other two commercial banks, Westpac Bank and ANZ Banking Group.
“BSP’s Retail Banking operations make basically zero profit,” Mr Clyne said.
“The costs of maintaining 35 branches around PNG, and servicing over 500,000 retail customers, many of whom keep only small balances, are extremely expensive.
“Only six out of 35 branches actually make a profit.”
He said that despite this, BSP continued to maintain these branches and was rolling out new ATMs, SMS services, and EFTPOS machines in retail stores, “all aimed at trying to make banking easier and more assessable to as many Papua New Guineans as possible”.
“The actual cost of using ATM’s or EFTPOS to withdraw cash is actually very low – 20 or 50 toea. People simply need to have a Kundu card to access their accounts and do not need to go into BSP branches to do most of their banking requirements,” Mr Clyne said.
“If you go into a branch and have teller services, it is much more costly to BSP and therefore a higher fee is charged.
“How many businesses do you know are willing to maintain loss making services? And even expand these services?
Mr Clyne added that the cost of transporting money around PNG was very high and with security risks increasing, the cost of armed escorts and the risks to bank staff were increasing.
“Security issues can potentially seriously impact whether a branch remains open or not. Communities that do not have banking services unfortunately suffer,” he said.
Mr Clyne said BSP had a three to five year strategy to double the number of retail customers to one million.
He said the cost of building and outfitting a branch was about K2 million, which many of the towns and regions “simply could not financially support or justify this type of investment”.
“BSP believes that by increasing the number of ATMs (150 plus), EFTPOS machines (2000 plus) and SMS Banking services, supported by a better agency network, more people will eventually get access to banking services,” Mr Clyne said.
“On the other hand no one can expect banking or any other service for free. The fee must reflect the true costs of providing these services.”
BANK South Pacific’s retail banking operations currently make “zero’ profit, managing director Ian Clyne revealed yesterday.
He said only six of the bank’s 35 branches were profitable.
Mr Clyne, who took over as chief executive of PNG’s largest commercial bank late last year, was responding to public criticism of “new” bank fees.
He said BSP had not undertaken any comprehensive fee review and increase for more than two years, including the majority of its service fees, despite a significant increase in operational and security costs over this period.
The current fee structure was similar to the other two commercial banks, Westpac Bank and ANZ Banking Group.
“BSP’s Retail Banking operations make basically zero profit,” Mr Clyne said.
“The costs of maintaining 35 branches around PNG, and servicing over 500,000 retail customers, many of whom keep only small balances, are extremely expensive.
“Only six out of 35 branches actually make a profit.”
He said that despite this, BSP continued to maintain these branches and was rolling out new ATMs, SMS services, and EFTPOS machines in retail stores, “all aimed at trying to make banking easier and more assessable to as many Papua New Guineans as possible”.
“The actual cost of using ATM’s or EFTPOS to withdraw cash is actually very low – 20 or 50 toea. People simply need to have a Kundu card to access their accounts and do not need to go into BSP branches to do most of their banking requirements,” Mr Clyne said.
“If you go into a branch and have teller services, it is much more costly to BSP and therefore a higher fee is charged.
“How many businesses do you know are willing to maintain loss making services? And even expand these services?
Mr Clyne added that the cost of transporting money around PNG was very high and with security risks increasing, the cost of armed escorts and the risks to bank staff were increasing.
“Security issues can potentially seriously impact whether a branch remains open or not. Communities that do not have banking services unfortunately suffer,” he said.
Mr Clyne said BSP had a three to five year strategy to double the number of retail customers to one million.
He said the cost of building and outfitting a branch was about K2 million, which many of the towns and regions “simply could not financially support or justify this type of investment”.
“BSP believes that by increasing the number of ATMs (150 plus), EFTPOS machines (2000 plus) and SMS Banking services, supported by a better agency network, more people will eventually get access to banking services,” Mr Clyne said.
“On the other hand no one can expect banking or any other service for free. The fee must reflect the true costs of providing these services.”
M’sian companies eye LNG projects in PNG
KUCHING: Two Malaysian companies eyeing liquefied natural gas (LNG) projects in Papua New Guinea (PNG) may soon be enlisted to take up the projects in PNG.AmResearch Sdn Bhd (AmResearch) in a research report yesterday cited that Wah Seong Corporation Bhd (Wah Seong) and Bredero Shaw Malaysia Sdn Bhd (Bredero Shaw) are currently the two pre-qualified bidders who are keen on projects in PNG.
It noted that there was a possibility that the pipe-coating contract amounting to over US$200 million could be divided among the two contenders.
It observed that KNM Group Bhd may also be looking to supply process equipment worth a few hundred million in US$ to the LNG facility.
PNG’s Department of Environment and Conservation has given the nod for the implementation of the LNG project. Operators such as ExxonMobil Corporation (ExxonMobil) confirmed that the country’s most comprehensive environment assessment was undertaken by environment experts with years of experience working in PNG with information about current oil fields.
The research house added that with participating interests in the PNG projects are ExxonMobil, through various affiliates, including Esso Highlands Ltd as operator at 41.5 per cent, Oil Search Ltd (34 per cent), South Australia Northern Territory Oil Search Ltd (Santos) (17.7 per cent), Nippon Oil Ltd (5.4 per cent), Minerals Resources Development Company (1.2 per cent) and Eda Oil Ltd (0.2 per cent).
It said these participating interests will change when the PNG state nominees join as equity participants. Meanwhile, the PNG LNG project which is expected to cost US$15 billion for the first phase by 2015, is an integrated development that include gas production and processing facilities, onshore and offshore pipelines and LNG plant facilities.
The project was proposed to commercialise undeveloped petroleum resources in the Hides, Angore and Juha fields and associated gas resources in the currently operating oil fields of Kutubu, Agogo, Gobe and Moran in the Southern Highlands and Western provinces of PNG.
AmResearch also noted that gas will be conditioned for transportation by a 440-mile pipeline to an LNG facility with a daily capacity of 960 million cubic feet-20km northwest of Port Moresby on the coast of the Gulf of Papua.
It said at the plant, the gas will be liquefied and the annual LNG capacity of 6.3 million tonnes will be loaded onto ocean going tankers and shipped to gas markets overseas.
It added that the preliminary schedule for the project indicated a final investment decision in late 2009 with a target of the first LNG cargo shipment in 2013 to 2014. It observed that once fully constructed, the project will have a lifetime or production phase of 30 years.
The research house pointed out that besides PNG, there are other huge LNG projects in Western Australia for instance in the Gorgon Browse and Ichthys. It observed that in PNG, only Wah Seong and Bredero Shaw have been short-listed for the Gorgon project.
Overall, the value of the pipe-coating contracts including the Gorgon and PNG projects could be worth up to an estimated US$1 billion.
AmResearch continued to be optimistic on the oil and gas sector given the declining situation of global oil reserves which is expected to lead to another shortage over the long term. Coupled with most international oil corporations who have reaffirmed their long-term capital expenditure programme, the research house maintained its favourable recommendation on the sector.
Its top picks included Kencana Petroleum Bhd and SapuraCrest Petroleum Bhd.
The research house also favoured Boustead Heavy Industries Corporation Bhd, Coastal Contracts Bhd, Alam Maritim Resources Bhd, Tanjung Offshore Bhd, KNM Group Bhd, Dialog Bhd and Wah Seong Corporation Bhd.
It maintained a neutral position on Petronas Gas Bhd, Scomi Group Bhd and Sealink International Bhd.
It noted that there was a possibility that the pipe-coating contract amounting to over US$200 million could be divided among the two contenders.
It observed that KNM Group Bhd may also be looking to supply process equipment worth a few hundred million in US$ to the LNG facility.
PNG’s Department of Environment and Conservation has given the nod for the implementation of the LNG project. Operators such as ExxonMobil Corporation (ExxonMobil) confirmed that the country’s most comprehensive environment assessment was undertaken by environment experts with years of experience working in PNG with information about current oil fields.
The research house added that with participating interests in the PNG projects are ExxonMobil, through various affiliates, including Esso Highlands Ltd as operator at 41.5 per cent, Oil Search Ltd (34 per cent), South Australia Northern Territory Oil Search Ltd (Santos) (17.7 per cent), Nippon Oil Ltd (5.4 per cent), Minerals Resources Development Company (1.2 per cent) and Eda Oil Ltd (0.2 per cent).
It said these participating interests will change when the PNG state nominees join as equity participants. Meanwhile, the PNG LNG project which is expected to cost US$15 billion for the first phase by 2015, is an integrated development that include gas production and processing facilities, onshore and offshore pipelines and LNG plant facilities.
The project was proposed to commercialise undeveloped petroleum resources in the Hides, Angore and Juha fields and associated gas resources in the currently operating oil fields of Kutubu, Agogo, Gobe and Moran in the Southern Highlands and Western provinces of PNG.
AmResearch also noted that gas will be conditioned for transportation by a 440-mile pipeline to an LNG facility with a daily capacity of 960 million cubic feet-20km northwest of Port Moresby on the coast of the Gulf of Papua.
It said at the plant, the gas will be liquefied and the annual LNG capacity of 6.3 million tonnes will be loaded onto ocean going tankers and shipped to gas markets overseas.
It added that the preliminary schedule for the project indicated a final investment decision in late 2009 with a target of the first LNG cargo shipment in 2013 to 2014. It observed that once fully constructed, the project will have a lifetime or production phase of 30 years.
The research house pointed out that besides PNG, there are other huge LNG projects in Western Australia for instance in the Gorgon Browse and Ichthys. It observed that in PNG, only Wah Seong and Bredero Shaw have been short-listed for the Gorgon project.
Overall, the value of the pipe-coating contracts including the Gorgon and PNG projects could be worth up to an estimated US$1 billion.
AmResearch continued to be optimistic on the oil and gas sector given the declining situation of global oil reserves which is expected to lead to another shortage over the long term. Coupled with most international oil corporations who have reaffirmed their long-term capital expenditure programme, the research house maintained its favourable recommendation on the sector.
Its top picks included Kencana Petroleum Bhd and SapuraCrest Petroleum Bhd.
The research house also favoured Boustead Heavy Industries Corporation Bhd, Coastal Contracts Bhd, Alam Maritim Resources Bhd, Tanjung Offshore Bhd, KNM Group Bhd, Dialog Bhd and Wah Seong Corporation Bhd.
It maintained a neutral position on Petronas Gas Bhd, Scomi Group Bhd and Sealink International Bhd.
Oil Search MD awarded CBE
OIL Search managing director Peter Botten has been awarded Commander of the Order of the British Empire (CBE) in the 2008 Queen’s Birthday Honours List for services to commerce and the mining and petroleum industry in Papua New Guinea.
Congratulating Mr Botten on his award, Oil Search’s executive general manager for PNG and external affairs Gerea Aopi said Mr Botten had been involved in the PNG petroleum industry since 1992 and had been managing director of Oil Search since 1993.
“On behalf of the management and staff of Oil Search Limited, I congratulate Mr Botten on this award, in recognition of his services to the mining and petroleum industry, both as managing director of Oil Search Limited and as president of the PNG Chamber of Mines and Petroleum,’’ Mr Aopi said.
Mr Aopi said during that time, Oil Search had grown from a market capitalisation of less than A$300 million (K773 million) to where it is presently valued at almost A$7 billion (K18 billion) and is listed in the top 50 companies on the Australian Stock Exchange.
He said this growth had been largely driven by investment in the oil and gas industry in PNG, where the company now operates all producing oil and gas fields and is a major partner with ExxonMobil in the PNG liquefied natural gas (LNG) project.
“I am deeply honoured to be recognised in this way,’’ Mr Botten said.
“This award reflects a commitment by all people at Oil Search to develop the oil and gas business in Papua New Guinea and contribute to the growth of the nation in a socially responsible way.’’
Congratulating Mr Botten on his award, Oil Search’s executive general manager for PNG and external affairs Gerea Aopi said Mr Botten had been involved in the PNG petroleum industry since 1992 and had been managing director of Oil Search since 1993.
“On behalf of the management and staff of Oil Search Limited, I congratulate Mr Botten on this award, in recognition of his services to the mining and petroleum industry, both as managing director of Oil Search Limited and as president of the PNG Chamber of Mines and Petroleum,’’ Mr Aopi said.
Mr Aopi said during that time, Oil Search had grown from a market capitalisation of less than A$300 million (K773 million) to where it is presently valued at almost A$7 billion (K18 billion) and is listed in the top 50 companies on the Australian Stock Exchange.
He said this growth had been largely driven by investment in the oil and gas industry in PNG, where the company now operates all producing oil and gas fields and is a major partner with ExxonMobil in the PNG liquefied natural gas (LNG) project.
“I am deeply honoured to be recognised in this way,’’ Mr Botten said.
“This award reflects a commitment by all people at Oil Search to develop the oil and gas business in Papua New Guinea and contribute to the growth of the nation in a socially responsible way.’’
Kina Securities surges to all-time high
KINA Securities Index surged as better performances were recorded for Bank South Pacific, Oil Search and Ramu in yesterday’s trading, reaching an all-time high of 7,189.95 points on the Port Moresby Stock Exchange (POMSoX).
The index surged passed the 7,000 points mark on Monday, and gained further territory in yesterday’s trade to settle at 7,189.95 points.
Kina Finance said with only six months into the year and the Kina Securities Index (KSi) has surged into the 7,000 points mark, surpassing trend predictions made at the start of the year.
At the close of trade yesterday, KSi recorded an all time high of 7,189.95 points on POMSoX, driven by the share price movement of Bank South Pacific, Oil Search and Ramu Sugar.
BSP gained K0.02 to close at K1.15, Oil Search (OSH) gained K0.01 to close at K14.41 and, Ramu Sugar (RMU) gained K0.38 to close at K6.50.
New Britain Palm Oil (NBO) gained K2.90 to close at K29.00 on Monday, however, its performance yesterday was dismal, recording no trades.
The KSi yesterday recorded an increase of 27.02% or 1,529.43 points since trading started this year at 5660.52 on Jan 1.
The market capitalisation has also increased by 24.48% from over K36 billion to over K44.8 billion.
For four consecutive years now, the local bourse has delivered double digit returns, placing the Port Moresby Stock Exchange amongst the best performing markets in the world.
“With our buoyant economy, particularly spurred by the resources and construction industry, the KSi performance is a reflection of the confidence and growth in the locally listed stocks,” chief executive officer of Kina Securities Limited Syd Yates said.
He said he was particularly pleased to see that more and more Papua New Guineans were looking at additional ways of investing their money, and venturing into shares and investment properties apart from their superannuation investment.
“The recent initial public offering of both Airlines PNG and Kina Asset Management Limited has seen many new clients trying their hands at shares investment for the first time,” Mr Yates said.
Since BSP’s 10-for-one share split on June 3, its share price has increased by 12% with a market capitalisation of K5.103 billion.
Since NBO’s listing on the London Stock Exchange late last year, the share price has gained strength, closing at K29.00, which is an increase of over 262% to give the company a market capitalisation of K3.480 billion.
Since Oil Search signed and executed a gas agreement with the PNG Government last month to enter the next LNG phase (front end engineering and design), the share price has gained momentum each day.
Compared to the same period last year when OSH was trading at K8.03, OSH has gone up by K6.38 or close to 80% to give the company a market capitalisation of K17.18 billion.
Ramu Sugar Limited’s share price closed yesterday at K6.50 which is an increase of over 100% above the K3.24 price, which it was trading at 12 months ago.
The market capitalisation today for Ramu stands at K144 million.
The index surged passed the 7,000 points mark on Monday, and gained further territory in yesterday’s trade to settle at 7,189.95 points.
Kina Finance said with only six months into the year and the Kina Securities Index (KSi) has surged into the 7,000 points mark, surpassing trend predictions made at the start of the year.
At the close of trade yesterday, KSi recorded an all time high of 7,189.95 points on POMSoX, driven by the share price movement of Bank South Pacific, Oil Search and Ramu Sugar.
BSP gained K0.02 to close at K1.15, Oil Search (OSH) gained K0.01 to close at K14.41 and, Ramu Sugar (RMU) gained K0.38 to close at K6.50.
New Britain Palm Oil (NBO) gained K2.90 to close at K29.00 on Monday, however, its performance yesterday was dismal, recording no trades.
The KSi yesterday recorded an increase of 27.02% or 1,529.43 points since trading started this year at 5660.52 on Jan 1.
The market capitalisation has also increased by 24.48% from over K36 billion to over K44.8 billion.
For four consecutive years now, the local bourse has delivered double digit returns, placing the Port Moresby Stock Exchange amongst the best performing markets in the world.
“With our buoyant economy, particularly spurred by the resources and construction industry, the KSi performance is a reflection of the confidence and growth in the locally listed stocks,” chief executive officer of Kina Securities Limited Syd Yates said.
He said he was particularly pleased to see that more and more Papua New Guineans were looking at additional ways of investing their money, and venturing into shares and investment properties apart from their superannuation investment.
“The recent initial public offering of both Airlines PNG and Kina Asset Management Limited has seen many new clients trying their hands at shares investment for the first time,” Mr Yates said.
Since BSP’s 10-for-one share split on June 3, its share price has increased by 12% with a market capitalisation of K5.103 billion.
Since NBO’s listing on the London Stock Exchange late last year, the share price has gained strength, closing at K29.00, which is an increase of over 262% to give the company a market capitalisation of K3.480 billion.
Since Oil Search signed and executed a gas agreement with the PNG Government last month to enter the next LNG phase (front end engineering and design), the share price has gained momentum each day.
Compared to the same period last year when OSH was trading at K8.03, OSH has gone up by K6.38 or close to 80% to give the company a market capitalisation of K17.18 billion.
Ramu Sugar Limited’s share price closed yesterday at K6.50 which is an increase of over 100% above the K3.24 price, which it was trading at 12 months ago.
The market capitalisation today for Ramu stands at K144 million.
PM commends RH for K1 billion Vision City project
June 18, 2008
PRIME Minister Sir Michael Somare has commended the Rimbunan Hijau (PNG) Group for its loyalty and continued investment in the country.
He said the group had remained steadfast through both good times and bad, while some companies folded up and left.
“They remained so despite negative criticisms from various parties, and is reaping the rewards,” he said when launching the group’s K1 billion Vision City project at Waigani yesterday.
He thanked the group for having the vision for such a grand project that would, he said, not only add to its assets but would also be a big boost to the country’s economy.
He said he was pleased that RH had been branching out from its traditional logging business, and going into transport, media, retail and now commercial property.
Sir Michael gave an assurance that the Government would continue to work closely with the private sector to help develop the country and improve the people’s standard of living and quality of life.
He said that of late, there had been several other significant investments in the country.
“And just recently, we witnessed the signing of the LNG agreement between PNG and Exxon Mobil worth over US$10 billion.
“My government has also invested millions in the Lae port project.
“Only a stable government with prudent financial management could ensure a good environment for businesses,” he said.
In his speech, RH Group chairman Tan Sri Datuk Tiong Hew King said PNG’s economy had improved greatly in the past two years, partly due to the Prime Minister’s leadership and government policies.
He said he had great confidence in the country and people and Vision City was proof of this.
“It is a long-term investment and I am confident the project will bring growth and prosperity to Port Moresby and the country,” he said.
Tan Sri Tiong said the project would take between seven and 10 years to complete and its construction would create about 1,800 jobs.
“When completed, the project would also create thousands of jobs and the retail operations in the Mega Mall alone would generate K200 million of economic activity a year.”
He said RH was approaching its 20th anniversary in PNG, dispelling claims that it would only be in the country for the short-term.
“The past 20 years have proved them wrong. The next 10 years and more we will continue to prove them wrong,” he said.
Vision City is located opposite the Sir John Guise Indoor Complex and adjacent to the City Hall and Waigani Office Complex.
It will have a three-storey Mega Mall housing a hypermarket, 50 retail outlets and restaurants, a hotel with more than 290 rooms and 120 serviced apartments, a convention centre that can accommodate 2,000 people, and a 10-storey block offering 60,000 sq metres of office space.
The hotel is expected to be managed by an international chain.
Guests at the launch were impressed by the magnitude of the project and were unanimous that it would be a great boost to the country.
PRIME Minister Sir Michael Somare has commended the Rimbunan Hijau (PNG) Group for its loyalty and continued investment in the country.
He said the group had remained steadfast through both good times and bad, while some companies folded up and left.
“They remained so despite negative criticisms from various parties, and is reaping the rewards,” he said when launching the group’s K1 billion Vision City project at Waigani yesterday.
He thanked the group for having the vision for such a grand project that would, he said, not only add to its assets but would also be a big boost to the country’s economy.
He said he was pleased that RH had been branching out from its traditional logging business, and going into transport, media, retail and now commercial property.
Sir Michael gave an assurance that the Government would continue to work closely with the private sector to help develop the country and improve the people’s standard of living and quality of life.
He said that of late, there had been several other significant investments in the country.
“And just recently, we witnessed the signing of the LNG agreement between PNG and Exxon Mobil worth over US$10 billion.
“My government has also invested millions in the Lae port project.
“Only a stable government with prudent financial management could ensure a good environment for businesses,” he said.
In his speech, RH Group chairman Tan Sri Datuk Tiong Hew King said PNG’s economy had improved greatly in the past two years, partly due to the Prime Minister’s leadership and government policies.
He said he had great confidence in the country and people and Vision City was proof of this.
“It is a long-term investment and I am confident the project will bring growth and prosperity to Port Moresby and the country,” he said.
Tan Sri Tiong said the project would take between seven and 10 years to complete and its construction would create about 1,800 jobs.
“When completed, the project would also create thousands of jobs and the retail operations in the Mega Mall alone would generate K200 million of economic activity a year.”
He said RH was approaching its 20th anniversary in PNG, dispelling claims that it would only be in the country for the short-term.
“The past 20 years have proved them wrong. The next 10 years and more we will continue to prove them wrong,” he said.
Vision City is located opposite the Sir John Guise Indoor Complex and adjacent to the City Hall and Waigani Office Complex.
It will have a three-storey Mega Mall housing a hypermarket, 50 retail outlets and restaurants, a hotel with more than 290 rooms and 120 serviced apartments, a convention centre that can accommodate 2,000 people, and a 10-storey block offering 60,000 sq metres of office space.
The hotel is expected to be managed by an international chain.
Guests at the launch were impressed by the magnitude of the project and were unanimous that it would be a great boost to the country.
LNG venture can support third output unit: UBS （June 18, 2009）
SYDNEY: ExxonMobil Corp’s A$12.5 billion (K34.2 billion) liquefied natural gas (LNG) venture in PNG has enough resources to support a third production unit that could come on stream by 2017, UBS AG said.
Spending on the initial phase of the project would make it cheaper to build an additional production unit, which could be completed for about A$3.5 billion (K9.6 billion), UBS analysts said in a note.
The venture has “defined resources that are highly supportive” of a third train, or unit, UBS said.
Exxon and its partners had given the go-ahead to build the project before the year-end, Oil Search Ltd, the second-biggest stakeholder in the venture, said.
PNG LNG is among more than 10 proposed projects in Australia and PNG seeking to tap a forecast increase in demand in North Asia for cleaner-burning fuels.
The venture plans a two-production-unit gas liquefaction plant near Port Moresby, with gas sourced from PNG’s highlands.
The project would have a capacity to produce 6.3 million metric tonnes of LNG a year.
The third train, with a capacity of 3.15mt a year, could come on stream by around 2017, assuming a final investment decision was made about a year after the project start-up, UBS analysts led by Melbourne-based Gordon Ramsay said in a June 10 note to clients.
Resources would need to be converted to reserves to support the additional train, UBS said. – Bloomberg
Spending on the initial phase of the project would make it cheaper to build an additional production unit, which could be completed for about A$3.5 billion (K9.6 billion), UBS analysts said in a note.
The venture has “defined resources that are highly supportive” of a third train, or unit, UBS said.
Exxon and its partners had given the go-ahead to build the project before the year-end, Oil Search Ltd, the second-biggest stakeholder in the venture, said.
PNG LNG is among more than 10 proposed projects in Australia and PNG seeking to tap a forecast increase in demand in North Asia for cleaner-burning fuels.
The venture plans a two-production-unit gas liquefaction plant near Port Moresby, with gas sourced from PNG’s highlands.
The project would have a capacity to produce 6.3 million metric tonnes of LNG a year.
The third train, with a capacity of 3.15mt a year, could come on stream by around 2017, assuming a final investment decision was made about a year after the project start-up, UBS analysts led by Melbourne-based Gordon Ramsay said in a June 10 note to clients.
Resources would need to be converted to reserves to support the additional train, UBS said. – Bloomberg
InterOil to boost PNG investment
INTEROIL Corp plans to increase capital investment in Papua New Guinea following the closure of the recent US$70 million (K188 million) direct stock offering.
“We believe we are now in the best financial position in our history … the company is on track to achieve a robust and vibrant future.
“We intend to take advantage created by the current global downturn in industry activity to accelerate our upstream (exploration) activities,” Bill Jasper, InterOil president, said when he announced the capital investment plan.
He said InterOil was currently inspecting a number of drilling rigs with the aim of purchasing an additional rig for use in its Gulf province exploration programme (Elk/Antelope 1).
Mr Jasper said the company also planned to acquire additional seismic data to delineate the Elk/Antelope structure and to prioritise a number of adjacent prospects.
“This increased activity should accelerate our growth plans and position us to develop and derive greater value from our asset base,” he said.
Gas from the Elk/Antelope fields is expected to feed the proposed InterOil-led liquefied natural gas project of which InterOil is a foundation member.
The project is expected to boost job generation, government revenues and balance of payments position.
“We believe we are now in the best financial position in our history … the company is on track to achieve a robust and vibrant future.
“We intend to take advantage created by the current global downturn in industry activity to accelerate our upstream (exploration) activities,” Bill Jasper, InterOil president, said when he announced the capital investment plan.
He said InterOil was currently inspecting a number of drilling rigs with the aim of purchasing an additional rig for use in its Gulf province exploration programme (Elk/Antelope 1).
Mr Jasper said the company also planned to acquire additional seismic data to delineate the Elk/Antelope structure and to prioritise a number of adjacent prospects.
“This increased activity should accelerate our growth plans and position us to develop and derive greater value from our asset base,” he said.
Gas from the Elk/Antelope fields is expected to feed the proposed InterOil-led liquefied natural gas project of which InterOil is a foundation member.
The project is expected to boost job generation, government revenues and balance of payments position.
BSP targets Colonial Fiji [Monday, June 29, 2009]
*Leading bank wants to boost lending once ExxonMobil-led LNG project takes off
By SHEILA LASIBORI
BANK South Pacific (BSP) is working to increase its capital to about K1 billion by next year, Ian Clyne, BSP’s chief executive officer, said.
“So that we can be a more active participant in the ExxonMobil-led liquefied natural gas (LNG) project in terms of lending ... we have increased concentration limits in terms of exposure to specific industry sectors and major clients,” he added.
The bank is also looking to raise K100 million from its “tier 2 notes” offer, he said.
He explained that due to compliance and regulatory issues for several institutional investors, BSP was still trying to finalise the issue.
He said BSP’s capital raising drive would also support its ongoing Pacific strategy should an interesting investment materialise.
“BSP is already a very well capitalised bank,” he said following reports of BSP in talks with the National Colonial Bank of Fiji to purchase its Fiji operations.
He said BSP’s capital raising strategy was linked to the medium term objects of the bank. He said Colonial Fiji was always viewed as an entity BSP was very interested in acquiring, as was the National Bank of Vanuatu and a privately-owned bank of Samoa.
“BSP will continually look for high value acquisition opportunities, but our focus for the next six to 12 months will be on improving service quality in PNG, and if we proceed to acquire Colonial Fiji, will integrate Colonial into the BSP family,” Mr Clyne said.
Colonial National Bank has a 20% market share, 17 branches and 31 automatic teller machines (ATM).
But while BSP looked to expand in the region, Mr Clyne said PNG would always be the centre of its banking activities and where it focused majority of its activities.
By SHEILA LASIBORI
BANK South Pacific (BSP) is working to increase its capital to about K1 billion by next year, Ian Clyne, BSP’s chief executive officer, said.
“So that we can be a more active participant in the ExxonMobil-led liquefied natural gas (LNG) project in terms of lending ... we have increased concentration limits in terms of exposure to specific industry sectors and major clients,” he added.
The bank is also looking to raise K100 million from its “tier 2 notes” offer, he said.
He explained that due to compliance and regulatory issues for several institutional investors, BSP was still trying to finalise the issue.
He said BSP’s capital raising drive would also support its ongoing Pacific strategy should an interesting investment materialise.
“BSP is already a very well capitalised bank,” he said following reports of BSP in talks with the National Colonial Bank of Fiji to purchase its Fiji operations.
He said BSP’s capital raising strategy was linked to the medium term objects of the bank. He said Colonial Fiji was always viewed as an entity BSP was very interested in acquiring, as was the National Bank of Vanuatu and a privately-owned bank of Samoa.
“BSP will continually look for high value acquisition opportunities, but our focus for the next six to 12 months will be on improving service quality in PNG, and if we proceed to acquire Colonial Fiji, will integrate Colonial into the BSP family,” Mr Clyne said.
Colonial National Bank has a 20% market share, 17 branches and 31 automatic teller machines (ATM).
But while BSP looked to expand in the region, Mr Clyne said PNG would always be the centre of its banking activities and where it focused majority of its activities.
Investment firm eyes new assets
INVESTMENT management company Kina Asset Management Limited (KAML) said on Friday it had resumed its long term investment strategy and acquired new global funds assets.
KAML said it had also increased its domestic investments by acquiring equities on the Australian Stock Exchange (ASX) and the Port Moresby Stock Exchange (POMSoX), chairman Sir Rabbie Namaliu said in a statement.
Sir Rabbie said the company’s investment manager had initiated a reduction to the current exposure of fixed deposits, which had been in place since the third quarter of last year.
He said KAML had continued its declared strategy of assessing the broad range of investment opportunities both locally and offshore and had decided to move into the global funds market with some strategic acquisitions. Sir Rabbie said some key opportunities had been identified within the United States, Australia and PNG markets.
“There are signs of the commencement of recovery in some key economic sectors and that it is opportune for KAML to move into the equities market,” he said. “KAML had commenced its program of acquisitions soon after its successful launch in July last year, but ceased the program in the third quarter, diverting a large percentage of its investment funds into the more secure money market sector with a range of fixed deposits.
“This strategy has proved to be wise and whilst in our first six months the fund operated at a slight loss, we remain poised with solid reserves to re-enter the broader marketplace which is in line with our commitment to shareholders.
“There are some signs that in several key sectors the global economic downturn has slowed and the world economy appears to be showing some improvements and is slowly returning to positive growth. “As an investment management group, we are making a considered move to be more active in the market and we will continue to look for further opportunities to increase the portfolio.”
Sir Rabbie added that the PNG economy had felt the strain of the global crisis and shares in Bank South Pacific and Credit Corporation had been particularly affected, which reflected the international trends impacting on KAML’s portfolio.
“However there is clear evidence that the major projects currently in the pipeline for the country were being actively pursued and the forecasts for the economy were very encouraging,” he said.
“The fact that the early works for the PNG LNG project have been forecast to commence shortly is an important milestone for the future.”
Sir Rabbie said KAML had reported positive growth in its investment portfolio from December 2008 and during the first quarter of 2009.
He said the company was working hard to ensure that shareholders were kept up to date with the progress of their investments.
He said a new comprehensive website would be launched shortly, which would enable shareholders to have detailed information about the companies and organisations in which their funds were invested, and allow investors to link directly to shareholdings within
the KAML share registry.
Sir Rabbie said the company’s first annual general meeting would be held on July 29.
BSP targets Colonial Fiji [Monday, June 29, 2009]
*Leading bank wants to boost lending once ExxonMobil-led LNG project takes off
By SHEILA LASIBORI
BANK South Pacific (BSP) is working to increase its capital to about K1 billion by next year, Ian Clyne, BSP’s chief executive officer, said.
“So that we can be a more active participant in the ExxonMobil-led liquefied natural gas (LNG) project in terms of lending ... we have increased concentration limits in terms of exposure to specific industry sectors and major clients,” he added.
The bank is also looking to raise K100 million from its “tier 2 notes” offer, he said.
He explained that due to compliance and regulatory issues for several institutional investors, BSP was still trying to finalise the issue.
He said BSP’s capital raising drive would also support its ongoing Pacific strategy should an interesting investment materialise.
“BSP is already a very well capitalised bank,” he said following reports of BSP in talks with the National Colonial Bank of Fiji to purchase its Fiji operations.
He said BSP’s capital raising strategy was linked to the medium term objects of the bank. He said Colonial Fiji was always viewed as an entity BSP was very interested in acquiring, as was the National Bank of Vanuatu and a privately-owned bank of Samoa.
“BSP will continually look for high value acquisition opportunities, but our focus for the next six to 12 months will be on improving service quality in PNG, and if we proceed to acquire Colonial Fiji, will integrate Colonial into the BSP family,” Mr Clyne said.
Colonial National Bank has a 20% market share, 17 branches and 31 automatic teller machines (ATM).
But while BSP looked to expand in the region, Mr Clyne said PNG would always be the centre of its banking activities and where it focused majority of its activities.
InterOil to boost PNG investment
INTEROIL Corp plans to increase capital investment in Papua New Guinea following the closure of the recent US$70 million (K188 million) direct stock offering.
“We believe we are now in the best financial position in our history … the company is on track to achieve a robust and vibrant future.
“We intend to take advantage created by the current global downturn in industry activity to accelerate our upstream (exploration) activities,” Bill Jasper, InterOil president, said when he announced the capital investment plan.
He said InterOil was currently inspecting a number of drilling rigs with the aim of purchasing an additional rig for use in its Gulf province exploration programme (Elk/Antelope 1).
Mr Jasper said the company also planned to acquire additional seismic data to delineate the Elk/Antelope structure and to prioritise a number of adjacent prospects.
“This increased activity should accelerate our growth plans and position us to develop and derive greater value from our asset base,” he said.
Gas from the Elk/Antelope fields is expected to feed the proposed InterOil-led liquefied natural gas project of which InterOil is a foundation member.
The project is expected to boost job generation, government revenues and balance of payments position.
THE Airlines PNG special fare to many domestic destinations are so successful that they have been booked out from Mt Hagen through Goroka to Lae for a full three weeks in advance. It just shows what innovative selling can do.
***
And then there is the mad, mad sale by MAF for its Mt Hagen to Goroka flights. For a limited period only, the third level airline, dubbed the “bushmen’s bus”, is selling tickets for just K50. With bus fare between the two ports at K20, this price is a steal.
***
One wonders what kind of telephony and telecommunications services Papua New Guineans would be enjoying today if there had never been any competition. Why is the Government so slow on introducing competition in other vital service areas such as air transportation, supply of electricity and port services?
***
Here is a message from a friend of PNG in the US. “I have been here for 15 years now, teaching in a high school. Prior to that, I was teaching at Dregerhafen High School in Finchhafen for nine years, then to Bugandi and Lae High before coming to the US. I have sponsored two students from Bumayong High School (which is my former school), one from Gordon High School and one from a community school in Hohola in the last five to seven years. My biggest desire is for these students, if they reading this article, to please get in touch with me as I love to know how they are doing. My email is aralnen@hotmail.com
June 18, 2009
LNG venture can support third output unit: UBS
SYDNEY: ExxonMobil Corp’s A$12.5 billion (K34.2 billion) liquefied natural gas (LNG) venture in PNG has enough resources to support a third production unit that could come on stream by 2017, UBS AG said.
Spending on the initial phase of the project would make it cheaper to build an additional production unit, which could be completed for about A$3.5 billion (K9.6 billion), UBS analysts said in a note.
The venture has “defined resources that are highly supportive” of a third train, or unit, UBS said.
Exxon and its partners had given the go-ahead to build the project before the year-end, Oil Search Ltd, the second-biggest stakeholder in the venture, said.
PNG LNG is among more than 10 proposed projects in Australia and PNG seeking to tap a forecast increase in demand in North Asia for cleaner-burning fuels.
The venture plans a two-production-unit gas liquefaction plant near Port Moresby, with gas sourced from PNG’s highlands.
The project would have a capacity to produce 6.3 million metric tonnes of LNG a year.
The third train, with a capacity of 3.15mt a year, could come on stream by around 2017, assuming a final investment decision was made about a year after the project start-up, UBS analysts led by Melbourne-based Gordon Ramsay said in a June 10 note to clients.
Resources would need to be converted to reserves to support the additional train, UBS said. – Bloomberg
June 18, 2008
PM commends RH for K1 billion Vision City project
PRIME Minister Sir Michael Somare has commended the Rimbunan Hijau (PNG) Group for its loyalty and continued investment in the country.
He said the group had remained steadfast through both good times and bad, while some companies folded up and left.
“They remained so despite negative criticisms from various parties, and is reaping the rewards,” he said when launching the group’s K1 billion Vision City project at Waigani yesterday.
He thanked the group for having the vision for such a grand project that would, he said, not only add to its assets but would also be a big boost to the country’s economy.
He said he was pleased that RH had been branching out from its traditional logging business, and going into transport, media, retail and now commercial property.
Sir Michael gave an assurance that the Government would continue to work closely with the private sector to help develop the country and improve the people’s standard of living and quality of life.
He said that of late, there had been several other significant investments in the country.
“And just recently, we witnessed the signing of the LNG agreement between PNG and Exxon Mobil worth over US$10 billion.
“My government has also invested millions in the Lae port project.
“Only a stable government with prudent financial management could ensure a good environment for businesses,” he said.
In his speech, RH Group chairman Tan Sri Datuk Tiong Hew King said PNG’s economy had improved greatly in the past two years, partly due to the Prime Minister’s leadership and government policies.
He said he had great confidence in the country and people and Vision City was proof of this.
“It is a long-term investment and I am confident the project will bring growth and prosperity to Port Moresby and the country,” he said.
Tan Sri Tiong said the project would take between seven and 10 years to complete and its construction would create about 1,800 jobs.
“When completed, the project would also create thousands of jobs and the retail operations in the Mega Mall alone would generate K200 million of economic activity a year.”
He said RH was approaching its 20th anniversary in PNG, dispelling claims that it would only be in the country for the short-term.
“The past 20 years have proved them wrong. The next 10 years and more we will continue to prove them wrong,” he said.
Vision City is located opposite the Sir John Guise Indoor Complex and adjacent to the City Hall and Waigani Office Complex.
It will have a three-storey Mega Mall housing a hypermarket, 50 retail outlets and restaurants, a hotel with more than 290 rooms and 120 serviced apartments, a convention centre that can accommodate 2,000 people, and a 10-storey block offering 60,000 sq metres of office space.
The hotel is expected to be managed by an international chain.
Guests at the launch were impressed by the magnitude of the project and were unanimous that it would be a great boost to the country.
Kina Securities surges to all-time high
KINA Securities Index surged as better performances were recorded for Bank South Pacific, Oil Search and Ramu in yesterday’s trading, reaching an all-time high of 7,189.95 points on the Port Moresby Stock Exchange (POMSoX).
The index surged passed the 7,000 points mark on Monday, and gained further territory in yesterday’s trade to settle at 7,189.95 points.
Kina Finance said with only six months into the year and the Kina Securities Index (KSi) has surged into the 7,000 points mark, surpassing trend predictions made at the start of the year.
At the close of trade yesterday, KSi recorded an all time high of 7,189.95 points on POMSoX, driven by the share price movement of Bank South Pacific, Oil Search and Ramu Sugar.
BSP gained K0.02 to close at K1.15, Oil Search (OSH) gained K0.01 to close at K14.41 and, Ramu Sugar (RMU) gained K0.38 to close at K6.50.
New Britain Palm Oil (NBO) gained K2.90 to close at K29.00 on Monday, however, its performance yesterday was dismal, recording no trades.
The KSi yesterday recorded an increase of 27.02% or 1,529.43 points since trading started this year at 5660.52 on Jan 1.
The market capitalisation has also increased by 24.48% from over K36 billion to over K44.8 billion.
For four consecutive years now, the local bourse has delivered double digit returns, placing the Port Moresby Stock Exchange amongst the best performing markets in the world.
“With our buoyant economy, particularly spurred by the resources and construction industry, the KSi performance is a reflection of the confidence and growth in the locally listed stocks,” chief executive officer of Kina Securities Limited Syd Yates said.
He said he was particularly pleased to see that more and more Papua New Guineans were looking at additional ways of investing their money, and venturing into shares and investment properties apart from their superannuation investment.
“The recent initial public offering of both Airlines PNG and Kina Asset Management Limited has seen many new clients trying their hands at shares investment for the first time,” Mr Yates said.
Since BSP’s 10-for-one share split on June 3, its share price has increased by 12% with a market capitalisation of K5.103 billion.
Since NBO’s listing on the London Stock Exchange late last year, the share price has gained strength, closing at K29.00, which is an increase of over 262% to give the company a market capitalisation of K3.480 billion.
Since Oil Search signed and executed a gas agreement with the PNG Government last month to enter the next LNG phase (front end engineering and design), the share price has gained momentum each day.
Compared to the same period last year when OSH was trading at K8.03, OSH has gone up by K6.38 or close to 80% to give the company a market capitalisation of K17.18 billion.
Ramu Sugar Limited’s share price closed yesterday at K6.50 which is an increase of over 100% above the K3.24 price, which it was trading at 12 months ago.
The market capitalisation today for Ramu stands at K144 million.
Oil Search MD awarded CBE
OIL Search managing director Peter Botten has been awarded Commander of the Order of the British Empire (CBE) in the 2008 Queen’s Birthday Honours List for services to commerce and the mining and petroleum industry in Papua New Guinea.
Congratulating Mr Botten on his award, Oil Search’s executive general manager for PNG and external affairs Gerea Aopi said Mr Botten had been involved in the PNG petroleum industry since 1992 and had been managing director of Oil Search since 1993.
“On behalf of the management and staff of Oil Search Limited, I congratulate Mr Botten on this award, in recognition of his services to the mining and petroleum industry, both as managing director of Oil Search Limited and as president of the PNG Chamber of Mines and Petroleum,’’ Mr Aopi said.
Mr Aopi said during that time, Oil Search had grown from a market capitalisation of less than A$300 million (K773 million) to where it is presently valued at almost A$7 billion (K18 billion) and is listed in the top 50 companies on the Australian Stock Exchange.
He said this growth had been largely driven by investment in the oil and gas industry in PNG, where the company now operates all producing oil and gas fields and is a major partner with ExxonMobil in the PNG liquefied natural gas (LNG) project.
“I am deeply honoured to be recognised in this way,’’ Mr Botten said.
“This award reflects a commitment by all people at Oil Search to develop the oil and gas business in Papua New Guinea and contribute to the growth of the nation in a socially responsible way.’’
PETALING JAYA: Malaysian tycoon Tan Sri Datuk Tiong Hiew King is among the four prominent figures in Papua New Guinea to have been knighted Monday in this year’s Queen’s birthday honours.
PNG Opposition leader, Sir Mekere Morauta was bestowed with the highest award and was named a Knight Commander of the Order of St Michael and St George (KCMG).
Tiong was knighted a Knight Commander of the Most Excellent order of the British Emprie (KBE) together with PNG Deputy Prime Minister Dr Puka Temu, and PNG Central Bank governor Wilson Kamit.
The three new knights will now be addressed by their first names as Sir Puka, Sir Hiew King and Sir Wilson.
The new knights were among more than 90 people recognised for their services to the country in this year’s Queen’s Birthday Honours and Awards.
Sir Puka was recognised for his services to public administration, politics and community; Sir Hiew King, chairman of the Rimbunan Hijau group, was recognised for services to commerce, community and charitable organisations. He is also the chairman of Pacific Star Limited, which publishes The National.
Sir Wilson was recognised for services to the Bank of Papua New Guinea.
The next highest award of Companion of the Order of St Michael and St George (CMG) was bestowed on Reverend Bishop Ambrose Kiapseni for services to the Catholic Church as bishop of Kavieng.
Attorney-General and Justice Minister Dr Allan Marat received an Order of British Empire (civil division) CBE for services to law, National Government and the East New Britain community. (MySinchew)
MySinchew 2009.06.16
KAML said it had also increased its domestic investments by acquiring equities on the Australian Stock Exchange (ASX) and the Port Moresby Stock Exchange (POMSoX), chairman Sir Rabbie Namaliu said in a statement.
Sir Rabbie said the company’s investment manager had initiated a reduction to the current exposure of fixed deposits, which had been in place since the third quarter of last year.
He said KAML had continued its declared strategy of assessing the broad range of investment opportunities both locally and offshore and had decided to move into the global funds market with some strategic acquisitions. Sir Rabbie said some key opportunities had been identified within the United States, Australia and PNG markets.
“There are signs of the commencement of recovery in some key economic sectors and that it is opportune for KAML to move into the equities market,” he said. “KAML had commenced its program of acquisitions soon after its successful launch in July last year, but ceased the program in the third quarter, diverting a large percentage of its investment funds into the more secure money market sector with a range of fixed deposits.
“This strategy has proved to be wise and whilst in our first six months the fund operated at a slight loss, we remain poised with solid reserves to re-enter the broader marketplace which is in line with our commitment to shareholders.
“There are some signs that in several key sectors the global economic downturn has slowed and the world economy appears to be showing some improvements and is slowly returning to positive growth. “As an investment management group, we are making a considered move to be more active in the market and we will continue to look for further opportunities to increase the portfolio.”
Sir Rabbie added that the PNG economy had felt the strain of the global crisis and shares in Bank South Pacific and Credit Corporation had been particularly affected, which reflected the international trends impacting on KAML’s portfolio.
“However there is clear evidence that the major projects currently in the pipeline for the country were being actively pursued and the forecasts for the economy were very encouraging,” he said.
“The fact that the early works for the PNG LNG project have been forecast to commence shortly is an important milestone for the future.”
Sir Rabbie said KAML had reported positive growth in its investment portfolio from December 2008 and during the first quarter of 2009.
He said the company was working hard to ensure that shareholders were kept up to date with the progress of their investments.
He said a new comprehensive website would be launched shortly, which would enable shareholders to have detailed information about the companies and organisations in which their funds were invested, and allow investors to link directly to shareholdings within
the KAML share registry.
Sir Rabbie said the company’s first annual general meeting would be held on July 29.
BSP targets Colonial Fiji [Monday, June 29, 2009]
*Leading bank wants to boost lending once ExxonMobil-led LNG project takes off
By SHEILA LASIBORI
BANK South Pacific (BSP) is working to increase its capital to about K1 billion by next year, Ian Clyne, BSP’s chief executive officer, said.
“So that we can be a more active participant in the ExxonMobil-led liquefied natural gas (LNG) project in terms of lending ... we have increased concentration limits in terms of exposure to specific industry sectors and major clients,” he added.
The bank is also looking to raise K100 million from its “tier 2 notes” offer, he said.
He explained that due to compliance and regulatory issues for several institutional investors, BSP was still trying to finalise the issue.
He said BSP’s capital raising drive would also support its ongoing Pacific strategy should an interesting investment materialise.
“BSP is already a very well capitalised bank,” he said following reports of BSP in talks with the National Colonial Bank of Fiji to purchase its Fiji operations.
He said BSP’s capital raising strategy was linked to the medium term objects of the bank. He said Colonial Fiji was always viewed as an entity BSP was very interested in acquiring, as was the National Bank of Vanuatu and a privately-owned bank of Samoa.
“BSP will continually look for high value acquisition opportunities, but our focus for the next six to 12 months will be on improving service quality in PNG, and if we proceed to acquire Colonial Fiji, will integrate Colonial into the BSP family,” Mr Clyne said.
Colonial National Bank has a 20% market share, 17 branches and 31 automatic teller machines (ATM).
But while BSP looked to expand in the region, Mr Clyne said PNG would always be the centre of its banking activities and where it focused majority of its activities.
InterOil to boost PNG investment
INTEROIL Corp plans to increase capital investment in Papua New Guinea following the closure of the recent US$70 million (K188 million) direct stock offering.
“We believe we are now in the best financial position in our history … the company is on track to achieve a robust and vibrant future.
“We intend to take advantage created by the current global downturn in industry activity to accelerate our upstream (exploration) activities,” Bill Jasper, InterOil president, said when he announced the capital investment plan.
He said InterOil was currently inspecting a number of drilling rigs with the aim of purchasing an additional rig for use in its Gulf province exploration programme (Elk/Antelope 1).
Mr Jasper said the company also planned to acquire additional seismic data to delineate the Elk/Antelope structure and to prioritise a number of adjacent prospects.
“This increased activity should accelerate our growth plans and position us to develop and derive greater value from our asset base,” he said.
Gas from the Elk/Antelope fields is expected to feed the proposed InterOil-led liquefied natural gas project of which InterOil is a foundation member.
The project is expected to boost job generation, government revenues and balance of payments position.
THE Airlines PNG special fare to many domestic destinations are so successful that they have been booked out from Mt Hagen through Goroka to Lae for a full three weeks in advance. It just shows what innovative selling can do.
***
And then there is the mad, mad sale by MAF for its Mt Hagen to Goroka flights. For a limited period only, the third level airline, dubbed the “bushmen’s bus”, is selling tickets for just K50. With bus fare between the two ports at K20, this price is a steal.
***
One wonders what kind of telephony and telecommunications services Papua New Guineans would be enjoying today if there had never been any competition. Why is the Government so slow on introducing competition in other vital service areas such as air transportation, supply of electricity and port services?
***
Here is a message from a friend of PNG in the US. “I have been here for 15 years now, teaching in a high school. Prior to that, I was teaching at Dregerhafen High School in Finchhafen for nine years, then to Bugandi and Lae High before coming to the US. I have sponsored two students from Bumayong High School (which is my former school), one from Gordon High School and one from a community school in Hohola in the last five to seven years. My biggest desire is for these students, if they reading this article, to please get in touch with me as I love to know how they are doing. My email is aralnen@hotmail.com
June 18, 2009
LNG venture can support third output unit: UBS
SYDNEY: ExxonMobil Corp’s A$12.5 billion (K34.2 billion) liquefied natural gas (LNG) venture in PNG has enough resources to support a third production unit that could come on stream by 2017, UBS AG said.
Spending on the initial phase of the project would make it cheaper to build an additional production unit, which could be completed for about A$3.5 billion (K9.6 billion), UBS analysts said in a note.
The venture has “defined resources that are highly supportive” of a third train, or unit, UBS said.
Exxon and its partners had given the go-ahead to build the project before the year-end, Oil Search Ltd, the second-biggest stakeholder in the venture, said.
PNG LNG is among more than 10 proposed projects in Australia and PNG seeking to tap a forecast increase in demand in North Asia for cleaner-burning fuels.
The venture plans a two-production-unit gas liquefaction plant near Port Moresby, with gas sourced from PNG’s highlands.
The project would have a capacity to produce 6.3 million metric tonnes of LNG a year.
The third train, with a capacity of 3.15mt a year, could come on stream by around 2017, assuming a final investment decision was made about a year after the project start-up, UBS analysts led by Melbourne-based Gordon Ramsay said in a June 10 note to clients.
Resources would need to be converted to reserves to support the additional train, UBS said. – Bloomberg
June 18, 2008
PM commends RH for K1 billion Vision City project
PRIME Minister Sir Michael Somare has commended the Rimbunan Hijau (PNG) Group for its loyalty and continued investment in the country.
He said the group had remained steadfast through both good times and bad, while some companies folded up and left.
“They remained so despite negative criticisms from various parties, and is reaping the rewards,” he said when launching the group’s K1 billion Vision City project at Waigani yesterday.
He thanked the group for having the vision for such a grand project that would, he said, not only add to its assets but would also be a big boost to the country’s economy.
He said he was pleased that RH had been branching out from its traditional logging business, and going into transport, media, retail and now commercial property.
Sir Michael gave an assurance that the Government would continue to work closely with the private sector to help develop the country and improve the people’s standard of living and quality of life.
He said that of late, there had been several other significant investments in the country.
“And just recently, we witnessed the signing of the LNG agreement between PNG and Exxon Mobil worth over US$10 billion.
“My government has also invested millions in the Lae port project.
“Only a stable government with prudent financial management could ensure a good environment for businesses,” he said.
In his speech, RH Group chairman Tan Sri Datuk Tiong Hew King said PNG’s economy had improved greatly in the past two years, partly due to the Prime Minister’s leadership and government policies.
He said he had great confidence in the country and people and Vision City was proof of this.
“It is a long-term investment and I am confident the project will bring growth and prosperity to Port Moresby and the country,” he said.
Tan Sri Tiong said the project would take between seven and 10 years to complete and its construction would create about 1,800 jobs.
“When completed, the project would also create thousands of jobs and the retail operations in the Mega Mall alone would generate K200 million of economic activity a year.”
He said RH was approaching its 20th anniversary in PNG, dispelling claims that it would only be in the country for the short-term.
“The past 20 years have proved them wrong. The next 10 years and more we will continue to prove them wrong,” he said.
Vision City is located opposite the Sir John Guise Indoor Complex and adjacent to the City Hall and Waigani Office Complex.
It will have a three-storey Mega Mall housing a hypermarket, 50 retail outlets and restaurants, a hotel with more than 290 rooms and 120 serviced apartments, a convention centre that can accommodate 2,000 people, and a 10-storey block offering 60,000 sq metres of office space.
The hotel is expected to be managed by an international chain.
Guests at the launch were impressed by the magnitude of the project and were unanimous that it would be a great boost to the country.
Kina Securities surges to all-time high
KINA Securities Index surged as better performances were recorded for Bank South Pacific, Oil Search and Ramu in yesterday’s trading, reaching an all-time high of 7,189.95 points on the Port Moresby Stock Exchange (POMSoX).
The index surged passed the 7,000 points mark on Monday, and gained further territory in yesterday’s trade to settle at 7,189.95 points.
Kina Finance said with only six months into the year and the Kina Securities Index (KSi) has surged into the 7,000 points mark, surpassing trend predictions made at the start of the year.
At the close of trade yesterday, KSi recorded an all time high of 7,189.95 points on POMSoX, driven by the share price movement of Bank South Pacific, Oil Search and Ramu Sugar.
BSP gained K0.02 to close at K1.15, Oil Search (OSH) gained K0.01 to close at K14.41 and, Ramu Sugar (RMU) gained K0.38 to close at K6.50.
New Britain Palm Oil (NBO) gained K2.90 to close at K29.00 on Monday, however, its performance yesterday was dismal, recording no trades.
The KSi yesterday recorded an increase of 27.02% or 1,529.43 points since trading started this year at 5660.52 on Jan 1.
The market capitalisation has also increased by 24.48% from over K36 billion to over K44.8 billion.
For four consecutive years now, the local bourse has delivered double digit returns, placing the Port Moresby Stock Exchange amongst the best performing markets in the world.
“With our buoyant economy, particularly spurred by the resources and construction industry, the KSi performance is a reflection of the confidence and growth in the locally listed stocks,” chief executive officer of Kina Securities Limited Syd Yates said.
He said he was particularly pleased to see that more and more Papua New Guineans were looking at additional ways of investing their money, and venturing into shares and investment properties apart from their superannuation investment.
“The recent initial public offering of both Airlines PNG and Kina Asset Management Limited has seen many new clients trying their hands at shares investment for the first time,” Mr Yates said.
Since BSP’s 10-for-one share split on June 3, its share price has increased by 12% with a market capitalisation of K5.103 billion.
Since NBO’s listing on the London Stock Exchange late last year, the share price has gained strength, closing at K29.00, which is an increase of over 262% to give the company a market capitalisation of K3.480 billion.
Since Oil Search signed and executed a gas agreement with the PNG Government last month to enter the next LNG phase (front end engineering and design), the share price has gained momentum each day.
Compared to the same period last year when OSH was trading at K8.03, OSH has gone up by K6.38 or close to 80% to give the company a market capitalisation of K17.18 billion.
Ramu Sugar Limited’s share price closed yesterday at K6.50 which is an increase of over 100% above the K3.24 price, which it was trading at 12 months ago.
The market capitalisation today for Ramu stands at K144 million.
Oil Search MD awarded CBE
OIL Search managing director Peter Botten has been awarded Commander of the Order of the British Empire (CBE) in the 2008 Queen’s Birthday Honours List for services to commerce and the mining and petroleum industry in Papua New Guinea.
Congratulating Mr Botten on his award, Oil Search’s executive general manager for PNG and external affairs Gerea Aopi said Mr Botten had been involved in the PNG petroleum industry since 1992 and had been managing director of Oil Search since 1993.
“On behalf of the management and staff of Oil Search Limited, I congratulate Mr Botten on this award, in recognition of his services to the mining and petroleum industry, both as managing director of Oil Search Limited and as president of the PNG Chamber of Mines and Petroleum,’’ Mr Aopi said.
Mr Aopi said during that time, Oil Search had grown from a market capitalisation of less than A$300 million (K773 million) to where it is presently valued at almost A$7 billion (K18 billion) and is listed in the top 50 companies on the Australian Stock Exchange.
He said this growth had been largely driven by investment in the oil and gas industry in PNG, where the company now operates all producing oil and gas fields and is a major partner with ExxonMobil in the PNG liquefied natural gas (LNG) project.
“I am deeply honoured to be recognised in this way,’’ Mr Botten said.
“This award reflects a commitment by all people at Oil Search to develop the oil and gas business in Papua New Guinea and contribute to the growth of the nation in a socially responsible way.’’
PETALING JAYA: Malaysian tycoon Tan Sri Datuk Tiong Hiew King is among the four prominent figures in Papua New Guinea to have been knighted Monday in this year’s Queen’s birthday honours.
PNG Opposition leader, Sir Mekere Morauta was bestowed with the highest award and was named a Knight Commander of the Order of St Michael and St George (KCMG).
Tiong was knighted a Knight Commander of the Most Excellent order of the British Emprie (KBE) together with PNG Deputy Prime Minister Dr Puka Temu, and PNG Central Bank governor Wilson Kamit.
The three new knights will now be addressed by their first names as Sir Puka, Sir Hiew King and Sir Wilson.
The new knights were among more than 90 people recognised for their services to the country in this year’s Queen’s Birthday Honours and Awards.
Sir Puka was recognised for his services to public administration, politics and community; Sir Hiew King, chairman of the Rimbunan Hijau group, was recognised for services to commerce, community and charitable organisations. He is also the chairman of Pacific Star Limited, which publishes The National.
Sir Wilson was recognised for services to the Bank of Papua New Guinea.
The next highest award of Companion of the Order of St Michael and St George (CMG) was bestowed on Reverend Bishop Ambrose Kiapseni for services to the Catholic Church as bishop of Kavieng.
Attorney-General and Justice Minister Dr Allan Marat received an Order of British Empire (civil division) CBE for services to law, National Government and the East New Britain community. (MySinchew)
MySinchew 2009.06.16
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