By GEEJAY MILLI
THE much-coveted award from the Intercontinental Hotels Group for this year went to Crowne Plaza Port Moresby’s general manager Tim Pollock.The awards event was hosted in Singapore last week.The award has been considered an achievement not only for the Crowne Plaza but also for Papua New Guinea because the recognition covers countries in the Asia-Australasia region.Other participating nations included countries in Asia, the Pacific and Australia and New Zealand.The award had drawn attention to the vast potential that PNG has as a country in what it has to offer.The general manager’s award of the year looks at categories of financial management of the hotel, guest experience, how well the hotel does as a responsible business and community relations.Pollock received a surprise welcome back from the hotel personnel who expressed pride over his feat.“I am very honoured to have won the award I am privileged to be the GM of this hotel but I am just part of the achievement,” Pollock said.“It is the people who are a big part of this, and I would encourage the staff to keep up the great effort,” he continued.Pollock, who previously lived in PNG, is in his third year as Crowne Plaza general manager.
Sunday, June 13, 2010
Home models prove a big hit
By KESSIE TADAP
THE PNG Forest Products’ recently-launched housing models of Niu Homes (NH) have drawn wide interest from prospective homebuyers nationwide.The series of home design-models were advertised in the newspapers.Marketing manager Fred Alblanaida, when contacted by The National yesterday, said due to the large number enquiries from the public, the company would not be able to reply to individual queries.However, Alblanaida said the company was drafting a standard reply which would be distributed through public channels.This way, the company hopes to answer public queries to their new range of home models.Although the company is not new to building and providing pre-fabricated homes for the PNG homebuyers, Alblanaida said the NH range was the company’s new model type of houses which had been specifically designed to give the people quality and affordable housing, which was “perfect for modern tropical lifestyle”.Asked about the target market, he said: “The company’s new home models are catered for people who could afford to buy them.”“From executive to village design settings, the buildings are 100% PNG made,” Alblanaida said.The buildings are termite-resistant as all timber components have been treated to meet Autralian standards, using 100 % sustainable and renewable pine wood.
THE PNG Forest Products’ recently-launched housing models of Niu Homes (NH) have drawn wide interest from prospective homebuyers nationwide.The series of home design-models were advertised in the newspapers.Marketing manager Fred Alblanaida, when contacted by The National yesterday, said due to the large number enquiries from the public, the company would not be able to reply to individual queries.However, Alblanaida said the company was drafting a standard reply which would be distributed through public channels.This way, the company hopes to answer public queries to their new range of home models.Although the company is not new to building and providing pre-fabricated homes for the PNG homebuyers, Alblanaida said the NH range was the company’s new model type of houses which had been specifically designed to give the people quality and affordable housing, which was “perfect for modern tropical lifestyle”.Asked about the target market, he said: “The company’s new home models are catered for people who could afford to buy them.”“From executive to village design settings, the buildings are 100% PNG made,” Alblanaida said.The buildings are termite-resistant as all timber components have been treated to meet Autralian standards, using 100 % sustainable and renewable pine wood.
Kikori landmen bond to pursue LNG projects
MORE than 30 Kikori pipeline landowners have come together to form the only two umbrella companies that would do business with the liquefied natural gas (LNG) project developers and owners.After long years of infighting and business conflict, the 30 landowners have united to form the Kikori Oil Investment and Greenfield Resources Investment as their duly- recognised umbrella companies.In a press conference, the landowners said their coming together had met the developer and the government’s requirements, aimed at speeding up the distribution of spin-off benefits from the gas project.The landowners said their companies were the only recognised companies as far as their people were concerned, adding that individual landowner company business proposals would be withdrawn.Kikori oil pipeline landowner association chairman Bomsy Boviro said they had taken a strong resolve to come together as one and that it was about time the state release their business grants while the developer should now give them projects.Greefield Investments managing director Timothy Irinaya said the issue as to which landowner group should be the main landowner company had been resolved and that they were ready to liaise with the company and the developer for whatever benefits they could get.He reiterated that the government should release the business development grants so the companies could start their business activities.West Kikori LLG president Wilson Baidu said the government would recognise no other groups but the two newly-formed companies.He thanked the parties for coming together for the sake of the people.
6,000 jobs at new tuna plant in Lae
THERE will be at least 6,000 jobs on offer to Papua New Guineans in Morobe province, thanks to the US$80 million (K226.6 million) integrated fish processing plant to be set up here. First phase will cost US$30 million (K85 million) which has a processing capacity of 130mt per day.The national government through the National Fisheries Authority (NFA), together with Morobe provincial government, signed the project agreement with Asia’s Majestic Seafoods Ltd.The 350mt per day tuna processing plant is to be constructed within the Malahang Industrial Centre in Lae.Majestic Seafoods Ltd is a company put up by three major companies composed of Frabelle Fishing Corp (Philippines) operating in PNG as Frabelle (PNG) Ltd; Philippine-based Century Canning Corp; and Thailand-based Thai Union Corp, a subsidiary of Thai Union Frozen Products PCL (TUF).According to company representatives Chris Po, president of Pacific Century Group; Narin Niruttinanon, deputy general manager Thai Union; and Frabelle president Engr Augusto Natividad, they would be bringing into the country and especially in Lae the technical know-how.And in return, they asked for support from the people especially those that will be employed, and the provincial and national governments.But the main ingredient that won the big names in Asia’s fishing industry over to PNG was the raw material tuna in PNG waters, which is part of the Western Central Pacific Ocean (WCPO).Natividad said PNG was rich in tuna and through NFA it had a well-managed fishery in the world.“We will be fishing within that allowable quarter to make sure that fishery will remain sustainable … it is the kind of resource that you can pass on for as long as we fish within that limit,” Natividad, who is also the director for Majestic Seafoods Ltd, said.He also stressed the importance of the cost of production at the plant.“That while we have the raw material here, we still have to compete with all other canneries all over the world. The market is the world.”Natividad said the competition would come from tuna producing countries which included Thailand, Philippines, Ecuador, and Spain among others.“So to make sure that we will have a cost that will be competitive, we need the support of everyone, especially the people who will work with us once the factory is in place.“We have to work together to make this cost competitive,” he said.Natividad commended NFA for having a very good food safety chain in place that was according to world standards, including the European Union (EU).NFA managing director Sylvester Pokajam said the project was a foreign direct investment.He said with Thai Union coming to PNG, a lot of things would change for the better since it (Thai Union) had changed Bangkok to be tuna centre in the world.Niruttinanon said: “While we see the potential for PNG to become next tuna centre in the world, it must be stressed that the key success factor is actually the PNG people.”
Kapris: Policy of govt to see how best to process natural resources
COMMERCE and Industry minister Gabriel Kapris says the policy of the national government is to see how best they can do downstream processing of PNG’s natural resources.And these natural resources includes fish where the government tries its best to find foreign investors who are willing to invest in the country and at the same time agree to carry out downstream processing.“That is promoting government’s policy on downstream processing and creating jobs.“Business is something that is not planted in PNG,” he said during the signing of the project agreement for PNG’s biggest fish project to be staged in Lae, Morobe province.“Spin off business is my concern … I would like you to give specific attention to Papua New Guineas … to see that people on the ground benefit from this project,” he told the gathering including representatives of the three companies heading the US$80 million project (K226 million).Majestic Seafoods Ltd will be the company to develop the project.It was established by Frabelle Fishing Corp. (Philippines) operating in PNG as Frabelle (PNG) Ltd, Philippine-based Century Canning Corp and Thailand-based Thai Union Corp., a subsidiary of Thai Union Frozen Products PCL (TUF).
Sunday, May 30, 2010
EU MPs positive on oil palm
KUALA LUMPUR: The European Union (EU) members of parliament (MPs) are impressed with the oil palm industry’s contribution towards creating wealth and economic growth for Malaysia.
Danish MP Dan Jorgensen, who is vice-chairman of the Environment Committee and member of the Group of Progressive Alliance of Socialists and Democrats in the European Parliament said: “As a whole, I think, it has helped take people out of poverty, which is a very positive thing.”
“The challenge now is the sustainability of the commodity. Even though progress has been made, there is still possibility of becoming better in this area,” he said after a stakeholder roundtable discussion on issues related to biodiversity and the sustainability of Malaysian palm oil here last Friday.
Jorgensen was on a week-long visit to Malaysia together with two other EU MPs – Martin J. Callanan (Committee on the Environment, Public Health and Food Safety) and Ole K. Christensen (Member of the ACP-EU Committee).
Jorgensen said the next decade would continue to see an increase in the focus on sustainability as a competition criteria on the global stage, whether for fuel, food or other commodities.
Some EU MPs on a visit to Malaysia say the sector has helped take people out of poverty
“From the sustainability point of view, palm oil has great potential compared with other oils,” he added.
Many have voiced concern over the new sustainability criteria in the EU Renewable Energy Directive, due to come into force from Dec 5, and its impact on palm oil-exporting countries like Malaysia.
On that matter, Jorgensen expressed the willingness of MPs to assist Malaysia in ensuring there was no discrimination against the country’s palm oil export to the region.
“First, we do not want any discrimination at all of the palm oil sector. We have promised our friends in the industry here to help them in discussions that we have in the EU on different criterias.
“If there has been any discrimination, we will do everthing possible to change it.
“Second, we are at the same time very committed to the sustainability criteria,” he said.
The sustainability criteria is related to two issues – the lifecycle greenhouse gas emissions of biofuels and the land used to produce the biofuels.
Christensen noted that in western Europe, there was perception that palm oil is a bad thing because rainforests are being destroyed to make way for plantations.
“That’s what many people believe. So, we are gratified to get assurances here that Malaysia has strict laws to ensure no more forests are destroyed,” he said.
He also said it was a challenge to get this point of view across to the Western audience. — Bernama
Danish MP Dan Jorgensen, who is vice-chairman of the Environment Committee and member of the Group of Progressive Alliance of Socialists and Democrats in the European Parliament said: “As a whole, I think, it has helped take people out of poverty, which is a very positive thing.”
“The challenge now is the sustainability of the commodity. Even though progress has been made, there is still possibility of becoming better in this area,” he said after a stakeholder roundtable discussion on issues related to biodiversity and the sustainability of Malaysian palm oil here last Friday.
Jorgensen was on a week-long visit to Malaysia together with two other EU MPs – Martin J. Callanan (Committee on the Environment, Public Health and Food Safety) and Ole K. Christensen (Member of the ACP-EU Committee).
Jorgensen said the next decade would continue to see an increase in the focus on sustainability as a competition criteria on the global stage, whether for fuel, food or other commodities.
Some EU MPs on a visit to Malaysia say the sector has helped take people out of poverty
“From the sustainability point of view, palm oil has great potential compared with other oils,” he added.
Many have voiced concern over the new sustainability criteria in the EU Renewable Energy Directive, due to come into force from Dec 5, and its impact on palm oil-exporting countries like Malaysia.
On that matter, Jorgensen expressed the willingness of MPs to assist Malaysia in ensuring there was no discrimination against the country’s palm oil export to the region.
“First, we do not want any discrimination at all of the palm oil sector. We have promised our friends in the industry here to help them in discussions that we have in the EU on different criterias.
“If there has been any discrimination, we will do everthing possible to change it.
“Second, we are at the same time very committed to the sustainability criteria,” he said.
The sustainability criteria is related to two issues – the lifecycle greenhouse gas emissions of biofuels and the land used to produce the biofuels.
Christensen noted that in western Europe, there was perception that palm oil is a bad thing because rainforests are being destroyed to make way for plantations.
“That’s what many people believe. So, we are gratified to get assurances here that Malaysia has strict laws to ensure no more forests are destroyed,” he said.
He also said it was a challenge to get this point of view across to the Western audience. — Bernama
Shortage of oil palm seedlings
By JACK WONG jackwong@thestar.com.my
Demand set to rise as Sarawak steps up development of oil palm plantations
KUCHING: Sarawak, which is facing a shortage of oil palm seedlings, is expected to see rising demand as the state has yet to develop a quarter of its target of one million hectares of oil palm plantations, said State Assistant Minister in the Chief Minister’s Department Naroden Majais.
He told an oil palm seedling entrepreneurship course here recently that Sarawak needed 16.4 million seedlings last year but the supply only amounted to 10 million.
Juara Beetuah Sdn Bhd managing director Michael James attributed the shortage in Sarawak, especially over the past two years, mainly to exports of oil palm seedlings to Kalimantan, Indonesia.
He said such sales had however abated as the Indonesian plantations, most of which were owned by Malaysian firms, had started their own nurseries.
Juara Beetuah, a major seedling producer and the only company in Sarawak awarded the competency certificate by Malaysian Palm Oil Board (MPOB), owns nurseries in Lundu (Kuching Division), Bintulu and Lawas in northern Sarawak.
Some EU MPs on a visit to Malaysia say the sector has helped take people out of poverty
James said his company produced up to 100,000 seedlings a year, which were mainly supplied to MPOB. The latter then distributes them to smallholders.
Juara Beetuah’s other customers are government agencies like Sarawak Land Consolidation and Rehabilitation Authority and Felda, which are involved in plantation projects.
“We produce based on advance contracts. On top of that, we produce another 10% for the market,” he told StarBiz.
Juara Beetuah uses high-yield clones that are able to produce between 28 and 33 tonnes of fresh fruit bunches per hectare a year.
However, James said the output would depend on several factors such as soil conditions and plantation management methods.
The company sells seedlings for RM8 to RM12 each, depending on transportation costs.
Demand set to rise as Sarawak steps up development of oil palm plantations
KUCHING: Sarawak, which is facing a shortage of oil palm seedlings, is expected to see rising demand as the state has yet to develop a quarter of its target of one million hectares of oil palm plantations, said State Assistant Minister in the Chief Minister’s Department Naroden Majais.
He told an oil palm seedling entrepreneurship course here recently that Sarawak needed 16.4 million seedlings last year but the supply only amounted to 10 million.
Juara Beetuah Sdn Bhd managing director Michael James attributed the shortage in Sarawak, especially over the past two years, mainly to exports of oil palm seedlings to Kalimantan, Indonesia.
He said such sales had however abated as the Indonesian plantations, most of which were owned by Malaysian firms, had started their own nurseries.
Juara Beetuah, a major seedling producer and the only company in Sarawak awarded the competency certificate by Malaysian Palm Oil Board (MPOB), owns nurseries in Lundu (Kuching Division), Bintulu and Lawas in northern Sarawak.
Some EU MPs on a visit to Malaysia say the sector has helped take people out of poverty
James said his company produced up to 100,000 seedlings a year, which were mainly supplied to MPOB. The latter then distributes them to smallholders.
Juara Beetuah’s other customers are government agencies like Sarawak Land Consolidation and Rehabilitation Authority and Felda, which are involved in plantation projects.
“We produce based on advance contracts. On top of that, we produce another 10% for the market,” he told StarBiz.
Juara Beetuah uses high-yield clones that are able to produce between 28 and 33 tonnes of fresh fruit bunches per hectare a year.
However, James said the output would depend on several factors such as soil conditions and plantation management methods.
The company sells seedlings for RM8 to RM12 each, depending on transportation costs.
Popoitai: Liquidity from gas project a problem
Source:
By SHEILA LASIBORI
THE PNG liquefied natural gas (LNG) project will continue to inject liquidity into the banking system over the construction phase.And the presence of increased liquidity is a major concern for the Bank of PNG (BPNG) that must act to diffuse it, according to Deputy BPNG Governor Benny Popoitai.BPNG uses the treasury bills (TB) to reduce or remove liquidity in the banking system.Popoitai said a wealth fund was appropriate to assist in keeping the liquidity level within the banking system at a lower rate.“Our current liquidity situation to date is that we have gone well over K700 billion in liquid assets in the banking system.“Our exchange settlement accounts has also gone over K500 million.“The basic indicator of the liquidity situation of the banks is that when the exchange settlement accounts of the banks with Central Bank increases, it indicates that they increased with liquidity.“That is a situation that we have to give a serious thought in dealing with the liquidity level,” Popoitai said yesterday in Port Moresby during the international and domestic stakeholders’ workshop on the possibility of setting up a wealth fund.“Much of that liquidity is injected from the construction of the LNG project as well as drawdown of the trust accounts from the BPNG,” he added.
By SHEILA LASIBORI
THE PNG liquefied natural gas (LNG) project will continue to inject liquidity into the banking system over the construction phase.And the presence of increased liquidity is a major concern for the Bank of PNG (BPNG) that must act to diffuse it, according to Deputy BPNG Governor Benny Popoitai.BPNG uses the treasury bills (TB) to reduce or remove liquidity in the banking system.Popoitai said a wealth fund was appropriate to assist in keeping the liquidity level within the banking system at a lower rate.“Our current liquidity situation to date is that we have gone well over K700 billion in liquid assets in the banking system.“Our exchange settlement accounts has also gone over K500 million.“The basic indicator of the liquidity situation of the banks is that when the exchange settlement accounts of the banks with Central Bank increases, it indicates that they increased with liquidity.“That is a situation that we have to give a serious thought in dealing with the liquidity level,” Popoitai said yesterday in Port Moresby during the international and domestic stakeholders’ workshop on the possibility of setting up a wealth fund.“Much of that liquidity is injected from the construction of the LNG project as well as drawdown of the trust accounts from the BPNG,” he added.
New push to conserve tuna stocks
Source:
By SHEILA LASIBORI
EIGHT Pacific Island countries, including PNG, are enforcing five new measures to conserve tuna in the Western Central Pacific Ocean (WCPO).The five new measures are:1) Reducing US treaty effort;2) Closing the rest of the high seas between 10 nautical miles and 20 nautical miles south to purse seine fishing;3) Extending the fish aggregating devise (FAD) closer to five or six months;4) Extending FAD closure on foreign fishing vessels only (or maybe a complete ban on use of beacons by foreign vessels; and5) Extending the FAD closure for purse seine fleets of commission (Western Central Pacific Fisheries Commission) member countries whose long line fleets take more than 4,000 tonnes annually in the high seas.National Fisheries Authority managing director Sylvester Pokajam made the disclosure while commenting on the status of tuna stock in the WCPO.The eight countries are: Palau, Federated States of Micronesia (FSM), PNG, Solomon Islands, Nauru, Kiribati, Tuvalu and the Marshall Islands.The countries drew up the additional measures prior to the fisheries ministers meeting in April this year during the Pacific Fisheries Agency (PFA) officials and ministers meeting in Solomon Islands.
By SHEILA LASIBORI
EIGHT Pacific Island countries, including PNG, are enforcing five new measures to conserve tuna in the Western Central Pacific Ocean (WCPO).The five new measures are:1) Reducing US treaty effort;2) Closing the rest of the high seas between 10 nautical miles and 20 nautical miles south to purse seine fishing;3) Extending the fish aggregating devise (FAD) closer to five or six months;4) Extending FAD closure on foreign fishing vessels only (or maybe a complete ban on use of beacons by foreign vessels; and5) Extending the FAD closure for purse seine fleets of commission (Western Central Pacific Fisheries Commission) member countries whose long line fleets take more than 4,000 tonnes annually in the high seas.National Fisheries Authority managing director Sylvester Pokajam made the disclosure while commenting on the status of tuna stock in the WCPO.The eight countries are: Palau, Federated States of Micronesia (FSM), PNG, Solomon Islands, Nauru, Kiribati, Tuvalu and the Marshall Islands.The countries drew up the additional measures prior to the fisheries ministers meeting in April this year during the Pacific Fisheries Agency (PFA) officials and ministers meeting in Solomon Islands.
Tuesday, May 25, 2010
Private sector urged to invest
THE private sector has been encouraged to consider investing in agriculture and manufacturing sectors to take advantage of the opportunities provided by the PNG liquefied natural gas (LNG) project which is essential for broad-based employment and income-earning opportunities.But the government must fully play its part by ensuring that roads, airstrips, ports, education and training utilities are operational and other investment conditions in place including a level playing field for competition, addressing law and order and corruption issues which hinder progress, according to the Business Council of PNG (BCPNG).“A stable exchange rate and low interest rates are needed for continued investment and a well managed and transparent sovereign wealth fund would be needed to restrain inflation and excessive currency appreciation, thus enabling other key industries such as agriculture, tourism and manufacturing to become viable once LNG revenue starts flowing,” Gerea Aopi, vice-president for BCPNG said.This was part of his closing remarks at the closing of the 26th Australia PNG business forum and trade expo in Townville, Australia this week.Aopi said the funding for the LNG project was secured in a tough financial market, and signalled the market and investor confidence in the project partners, led by ExxonMobil.“It also is a vote of confidence in PNG as an investment destination.
NBPO posts US$4.3mil profit drop
By YEHIURA HRIEHWAZI in Brisbane
NEW Britain Palm Oil (NBPO) recorded a drop in profit of US$4.3 million (K12.11 million) in the first quarter of this year, forced mainly by bad weather affecting fruits, road conditions and haulage.The company also announced that it will start operating its Liverpool refinery in England “within next month” and its chief finance director of 18 years David Dann will also leave the company in August.The announcements were made in Singapore as NBPO unveiled a profit of US$23.3 million (K3 million) for the three months to March 31, down from US$27.6 million (K78 million) in the same period last year. Sales climbed to US$82.1 million (K231 million) from US$73.8 million (K207 million).While the average price per tonne of crude palm oil climbed to US$767 (K2,154) from US$747 (K2,098), production fell to 86,025 from 87,690 tonnes.NBPO said Dann was “leaving the company to pursue other interests” and will work until Aug 31 to help smooth the handover. During the handover period his duties will be taken over by chief financial officer Amir Mohareb.Mohareb, who previously worked closely with Dann, is promoted to the top finance role and is expected to take up all of Dann’s operational duties following a three-month handover.Mohareb, who will “not immediately” join the board, currently works out of the PNG office and will transfer to the main office in Singapore following the promotion.Its production at the Liverpool plant will start processing crude oil delivered from its PNG plantations. “Progress at our UK palm oil refinery in Liverpool has been good and the plant is due to commence operations within the next month,” the company said.The group has already negotiated a series of multi-million pound supply deals with clients such as United Biscuits and cereals maker Jordans.Regular shipments from plantations in PNG will supply the Liverpool plant.
NEW Britain Palm Oil (NBPO) recorded a drop in profit of US$4.3 million (K12.11 million) in the first quarter of this year, forced mainly by bad weather affecting fruits, road conditions and haulage.The company also announced that it will start operating its Liverpool refinery in England “within next month” and its chief finance director of 18 years David Dann will also leave the company in August.The announcements were made in Singapore as NBPO unveiled a profit of US$23.3 million (K3 million) for the three months to March 31, down from US$27.6 million (K78 million) in the same period last year. Sales climbed to US$82.1 million (K231 million) from US$73.8 million (K207 million).While the average price per tonne of crude palm oil climbed to US$767 (K2,154) from US$747 (K2,098), production fell to 86,025 from 87,690 tonnes.NBPO said Dann was “leaving the company to pursue other interests” and will work until Aug 31 to help smooth the handover. During the handover period his duties will be taken over by chief financial officer Amir Mohareb.Mohareb, who previously worked closely with Dann, is promoted to the top finance role and is expected to take up all of Dann’s operational duties following a three-month handover.Mohareb, who will “not immediately” join the board, currently works out of the PNG office and will transfer to the main office in Singapore following the promotion.Its production at the Liverpool plant will start processing crude oil delivered from its PNG plantations. “Progress at our UK palm oil refinery in Liverpool has been good and the plant is due to commence operations within the next month,” the company said.The group has already negotiated a series of multi-million pound supply deals with clients such as United Biscuits and cereals maker Jordans.Regular shipments from plantations in PNG will supply the Liverpool plant.
Thursday, May 20, 2010
EON Cap's board to present proposal to shareholders
KUALA LUMPUR: EON Capital's board of directors will present a proposal by Hong Leong Bank to acquire the former's assets and liabilities with RM5.06 billion cash or RM7.30 per share in an EGM soon.
MIMB Investment Bank said in an announcement Friday on behalf of the board that a resolution would be tabled at the EGM on the proposal as well as the proposed distribution of the cash proceeds arising from the disposal to the shareholders.
The investment bank said this was being done after taking into consideration Credit Suisse Securities (M) Sdn Bhd's opinion that the offer was not fair from a financial perspective.
Credit Suisse was appointed as the independent adviser for the deal.
MIMB also said EON Capital's board member Ng Wing Fai's views would also be included in a circular to shareholders for the upcoming EGM. Ng, whose Primus Pacific Partners (HK) Ltd held a 20.2% stake in EON Capital, has expressed disagreement with the board over the offer.
MIMB said after taking into consideration Credit Suisse's opinion, the advice of the international adviser Goldman Sachs and all relevant aspects of the offer, the board has resolved that the proposed disposal was in the best interest of the bank.
MIMB said should the acquisition be passed, the cash distribution would be through a special dividend estimated to be about RM3.30 billion based on EON Capital's audited financial statements as at December 31, 2009 and, a capital reduction exercise amounting to RM1.76 billion.
MIMB Investment Bank said in an announcement Friday on behalf of the board that a resolution would be tabled at the EGM on the proposal as well as the proposed distribution of the cash proceeds arising from the disposal to the shareholders.
The investment bank said this was being done after taking into consideration Credit Suisse Securities (M) Sdn Bhd's opinion that the offer was not fair from a financial perspective.
Credit Suisse was appointed as the independent adviser for the deal.
MIMB also said EON Capital's board member Ng Wing Fai's views would also be included in a circular to shareholders for the upcoming EGM. Ng, whose Primus Pacific Partners (HK) Ltd held a 20.2% stake in EON Capital, has expressed disagreement with the board over the offer.
MIMB said after taking into consideration Credit Suisse's opinion, the advice of the international adviser Goldman Sachs and all relevant aspects of the offer, the board has resolved that the proposed disposal was in the best interest of the bank.
MIMB said should the acquisition be passed, the cash distribution would be through a special dividend estimated to be about RM3.30 billion based on EON Capital's audited financial statements as at December 31, 2009 and, a capital reduction exercise amounting to RM1.76 billion.
Tengdui appointed to Petromin board
PAPUA New Guinean accountant Richard Tengdui has been appointed to the board of Petromin PNG Holdings Ltd.He has been appointed a non-executive director for a three -year term that took effect last May 5.Tengdui was nominated for appointment by Petromin board chairman Brown Bai, based on his performance as independent external member nominated by Certified Practicing Accountants of PNG to the Petromin audit and compliance board sub-committee. In welcoming Tengdui to the board, Bai said Tengdui’s wealth of experience in accounting, auditing and taxation would greatly enhance the boards ability to make balanced investment and management decisions.Tengdui’s appointment was made early this month by Petromin trustee shareholder Prime Minister Michael Somare.
NGE allots A$47m for drilling
AUSTRALIA’s New Guinea Energy (NGE) Ltd and Canada’s Talisman Niugini Ltd will now commit more than A$47 million (K118 million) to its drilling and seismic testing activities in Western province. The testing and drilling activities are on four petroleum prospecting licence (PPL) areas PPL266 and 267 – 100% NGE owned; and 268 and 269 - in shared ownership with Talisman (50-85% NGE and 15-50% Talisman).Michael Arnett, executive chairman of NGE, said last Friday a first well was in sight and that they were now mobilising the drilling programme on PPL 267- Panakawa.He said this during the sixth annual general meeting (AGM) in Port Moresby last Friday.NGE now has A$25 million (K63 million) available, of which about 40% will go to the testing and drilling of four PPL areas (together with Talisman) and also to fund other immediate activities. Last month, NGE executed a drilling contract with Australian Drilling Services Ltd to secure their Kremco ‘K 650” rig (Rig 6) for the drilling program on Panakawa prospect.Arnett said subject to timely completion of obligations by third parties, the obtaining of necessary PNG government approvals and other technical and environmental issues were expected early to middle of next month.
Shell: Bullish LNG growth
PERTH: Worldwide demand for liquefied natural gas (LNG) will almost double to between 350 million tonnes per annum (mtpa) and 400 mtpa by 2020 compared with about 200 mpta currently, global energy giant Royal Dutch Shell says.Queensland’s booming coal seam gas-to-LNG sector was entering a new phase of growth and investment, and would play a major role in meeting rising demand for the fuel, Shell senior executive Anne Pickard said.Pickard, who is executive vice-president of Shell Upstream International’s Australian arm, said the energy giant remained hopeful that it would complete its proposed multi-billion-dollar joint takeover of Brisbane-based CSG producer Arrow Energy that was being undertaken with PetroChina Ltd.She also said Australia represented the key plank in Shell’s push to boost its LNG output.“Globally, we aim to add around 15mtpa of LNG capacity by 2020, and much of that effort and investment will be focused in Australia, making us one of the biggest investors in the country,” Pickard told the Australian Petroleum Production & exploration Association Ltd conference in Brisbane yesterday.“If the (Arrow) transaction is completed, we will be in a position, through Arrow, to establish an integrated CSG-LNG operation.“It will bring together Arrow’s expertise as a leading coal seam gas operator, Shell’s LNG know-how, and PetroChina’s access to the Chinese energy market.“We are excited about this project (Arrow’s Curtis Island LNG project at Gladstone) and hope the joint acquisition is successful.” – AAP
Tuesday, May 11, 2010
WNB oil palm growers badly hurt by rains
THE oil palm sector in West New Britain province has been hard hit by continuous rains since last October.Destructions have been caused to road and bridge infrastructure which affected small oil palm growers within the Bialla district.Small growers were unable to sell fresh fruit bunch (FFB) and were deprived of income to pay for various needs including school fees.Between January and March this year, some growers especially from Silali, Tiauru and some parts of central Nakanai areas lost their palm produce as road networks were destroyed, thus preventing the delivery of FFB to the Hargy mill in Bialla.Temporary civil works carried out on roads recently was a relief to the affected growers as fruit trucks had gradually accessed the growers’ harvests for the month of April.Small oil palm growers were relieved of their anxieties when FFB delivery trucks picked up their produce which enabled them to earn hard cash.
Sunday, May 9, 2010
PNGWIB welcomes Chinese investors
Source:
By PATRICK TALU
SMALL to medium scale business entrepreneurs in Papua New Guinea have invited and welcomed Chinese entrepreneurs to invest in PNG.President of PNG Women in Business (PNGWIB) Janet Sape welcomed delegates of various small to medium scale entrepreneurs led by Shanghai Federation of Industry and Commerce (SFIC), who are in the country looking for business opportunities.Sape said PNG was a place of opportunities and they would find it suitable and conducive for investment.She said such investments in partnership with local entrepreneurs would enhance stronger business cooperation between Shanghai and PNG encouraging growth and sustainability of local business.Sape said she would be taking four delegates from PNGWIB to attend the Shanghai Expo 2010 and seek more opportunities for women.A local business-woman, who is involved in catering services, said it had been very difficult doing business in PNG, especially when seeking loans at the commercial banks.“If the Chinese are interested in PNG, it will give us the opportunity to go into partnership,” the women, who wished to remain unidentified, told The National yesterday. Many small business owners turned out in numbers and met with the delegates and exchanged information at a seminar yesterday at Airways Hotel.The aim of the seminar was to enhance the understanding and cooperation with different PNG chambers and relevant organisations in their endeavour to promote the external cooperation for Shanghai Small to Medium Entrepreneurs.The companies’ interests include scrap tyre and waste rubber processing line, investigation of the urban infrastructure market, real estate and construction and technology.While most of the visiting delegates are here to discuss potential joint venture deals in their specialised business activities, others are here to seek trade and investment opportunities.
By PATRICK TALU
SMALL to medium scale business entrepreneurs in Papua New Guinea have invited and welcomed Chinese entrepreneurs to invest in PNG.President of PNG Women in Business (PNGWIB) Janet Sape welcomed delegates of various small to medium scale entrepreneurs led by Shanghai Federation of Industry and Commerce (SFIC), who are in the country looking for business opportunities.Sape said PNG was a place of opportunities and they would find it suitable and conducive for investment.She said such investments in partnership with local entrepreneurs would enhance stronger business cooperation between Shanghai and PNG encouraging growth and sustainability of local business.Sape said she would be taking four delegates from PNGWIB to attend the Shanghai Expo 2010 and seek more opportunities for women.A local business-woman, who is involved in catering services, said it had been very difficult doing business in PNG, especially when seeking loans at the commercial banks.“If the Chinese are interested in PNG, it will give us the opportunity to go into partnership,” the women, who wished to remain unidentified, told The National yesterday. Many small business owners turned out in numbers and met with the delegates and exchanged information at a seminar yesterday at Airways Hotel.The aim of the seminar was to enhance the understanding and cooperation with different PNG chambers and relevant organisations in their endeavour to promote the external cooperation for Shanghai Small to Medium Entrepreneurs.The companies’ interests include scrap tyre and waste rubber processing line, investigation of the urban infrastructure market, real estate and construction and technology.While most of the visiting delegates are here to discuss potential joint venture deals in their specialised business activities, others are here to seek trade and investment opportunities.
Aussies move in to secure space in LNG
WHILE Papua New Guineans are complaining about their inability to win contracts from the PNG liquified natural gas (LNG) project, north Queensland businesses are moving into high gears organising themselves to get a slice of the action.President of Port Moresby Chamber of Commence (CC) David Conn was in Cairns last week to brief businesses there on how to get involved in the PNG activities while the Townsville CC organised a breakfast meeting with the Australia PNG Business council to discuss business opportunities in PNG.Conn attended a meeting in Cairns on April 21, where about 170 businesses were represented. The theme of the forum was; “Partnering with PNG” by people wanting to export their services and expertise to the gas resources development projects.The “Partnering with PNG” forum, co-hosted by Advance Cairns and the Cairns CC, will feature a panel session and key guest presenters offering extensive and current business experience working with, and in PNG.Conn provided a “warts and all” advice on what it takes to be involved in the PNG market, while Carl Valentine, a Port Moresby partner with PricewaterhouseCoopers with significant experience in the PNG market, gave attendees information on technicalities of doing business with PNG.
Indon ‘money guru’ to head World Bank
WORLD Bank (WB) president Robert B. Zoellick has announced the appointment of Sri Mulyani Indrawati as managing director of the World Bank Group.As Indonesia’s minister for finance since 2005, Indrawati has guided economic policy for one of the largest countries in Southeast Asia, and one of the biggest states in the world, navigating successfully in the midst of the global economic crisis, implementing key reforms, and earning the respect of her peers across the world.“I am delighted to announce the appointment of Sri Mulyani Indrawati. She has been an outstanding Finance minister with in-depth knowledge of both development issues and the role of the World Bank Group,” Zoellick said .“As a member of the senior team, she will play a key role in helping to lead the bank as we move to strengthen client support, implement our reform programmes, and anticipate future challenges.”Prior to her position as finance minister, Indrawati served as state minister and chair of the Indonesian national development planning agency.Between 2008 and 2009, she served as coordinating minister of economic affairs.From 2002 to 2004, she was an executive director on the board of the International Monetary Fund.She has been on the faculty of the University of Indonesia and was a visiting professor at the Andrew Young School of Public Policy at Georgia State University.Accepting the appointment Indrawati said: “It is a great honour for me and also for my country to have this opportunity to contribute to the very important mission of the bank in changing the world.”
Landowner company into joint venture
Source:
By PATRICK TALU
LOCAL landowner company (lanco) Massco PNG Limited (MPNGL), South Korean-based firm, CoDA PNG Ltd, and associates company Seohee Construction Ltd (CPNGL), have entered into a joint venture agreement to participate as major contractors in the PNG LNG project.The MoU was signed by MPNGL executive chairman Jerome Kairi, CPNGL chief executive Joshua Chi and Kim Young-kim of Seohee Ltd in Port Moresby yesterday, witnessed by board of directors of MPNGL and CPNGL representatives.CPNGL and Seohee are amongst the top three planning and design architecture and property development company in the South Korea with branches in the Britain and the United States.MPNGL is the umbrella lanco of the Gobe Field Engineering (GFE), from Gobe main PDL 4 in Southern Highlands province.During the signing of the joint venture agreement between the three companies, Kairi said: “The occasion signifying our desires, hopes and aspirations to meaningfully participate directly in the engineering procurement contractors (EPC) construction and not as subcontractors to EPC.“It also voices out our capacity and capabilities to meet the projects contracts schedule,” Kairi said.He added that the joint venture company was for the purpose of long term sustainability and maximising benefits and capacity building for lancos.Kairi said the joint venture was not duplicating the GFE functions but a commercial venture with GFE’s blessing.“We want to prove that we can be competitive with major contractors.”During an interview with Chi as to what specific project CPNGL was looking at the LNG project, he said: “As a specialist planning design and architecture, we are looking at all aspect so long as our services are required by EPC.“We are also looking at project managements and property development.”The signing had paved the way for equipment mobilisations from South Korea into the project construction sites before June in order to kick start the project.
By PATRICK TALU
LOCAL landowner company (lanco) Massco PNG Limited (MPNGL), South Korean-based firm, CoDA PNG Ltd, and associates company Seohee Construction Ltd (CPNGL), have entered into a joint venture agreement to participate as major contractors in the PNG LNG project.The MoU was signed by MPNGL executive chairman Jerome Kairi, CPNGL chief executive Joshua Chi and Kim Young-kim of Seohee Ltd in Port Moresby yesterday, witnessed by board of directors of MPNGL and CPNGL representatives.CPNGL and Seohee are amongst the top three planning and design architecture and property development company in the South Korea with branches in the Britain and the United States.MPNGL is the umbrella lanco of the Gobe Field Engineering (GFE), from Gobe main PDL 4 in Southern Highlands province.During the signing of the joint venture agreement between the three companies, Kairi said: “The occasion signifying our desires, hopes and aspirations to meaningfully participate directly in the engineering procurement contractors (EPC) construction and not as subcontractors to EPC.“It also voices out our capacity and capabilities to meet the projects contracts schedule,” Kairi said.He added that the joint venture company was for the purpose of long term sustainability and maximising benefits and capacity building for lancos.Kairi said the joint venture was not duplicating the GFE functions but a commercial venture with GFE’s blessing.“We want to prove that we can be competitive with major contractors.”During an interview with Chi as to what specific project CPNGL was looking at the LNG project, he said: “As a specialist planning design and architecture, we are looking at all aspect so long as our services are required by EPC.“We are also looking at project managements and property development.”The signing had paved the way for equipment mobilisations from South Korea into the project construction sites before June in order to kick start the project.
Saudi company wins contract
SAUDI Arabia-based Red Sea Housing Services (RSH), the world’s leading provider of remote site housing, has been awarded US$127.9 million ( K352 million) contract by Chiyoda-JC Joint Venture (CJCV), to build housing facility for LNG project.The contract is specifically to build liquefaction and storage facilities and other housing facilities at Portion 152 near Papa and Lealea areas in Central province.ExxonMobil has awarded the engineering contract to CJCV, a company specialised in multi-disciplinary and construction of major housing facilities to cater for Esso Highlands housing facilities.CJCV then sub-contracted RSH to build the do the work.In a statement released by RSH, construction is expected to be completed next November and will accommodate the LNG project workforce.Chairman of RSH Dr Majid Al Kassabi said: “We are pleased to have this opportunity to build a high-quality housing facility for the PNG gas project.“This reflects our reputed expertise and commitment to provide the best and durable housing solutions for ExxonMobil Corporation”.Don Summer, managing director of ASH, said awarding the new contract to RSH was based on the company’s reputation and craftsmanship spread out in different countries of the world including Africa.Meanwhile, a local contractor who did not want to be named said it was a slap in the face for local contractor like him.“It undermines the capabilities of local business,” he said.
Tuesday, May 4, 2010
NBPOL completes CTP PNG take-over
THE New Britain Palm Oil Limited (NBPOL), a large scale integrated industrial producer of sustainable palm oil, has completed its acquisition of the 80% of shares in CTP (PNG) Limited, according to a statement in its website.Two months ago, the company announced the proposed acquisition of CTP PNG for a considered price of US$175 million (about K482 million) payable in cash, plus an additional consideration in relation to stocks and capital expenditure.NBPOL said the completion of the CTP PNG acquisition was conditional upon entering into a US$200 million (about K550 million) 12-month facility with Standard Chartered Bank and the ANZ Banking Group Ltd and approval by ordinary resolution of the company’s shareholders being obtained at the general meeting on April 15.NBPOL said these had been satisfied and the acquisition was now complete.The acquisition includes the addition of more than 25,000ha of established and producing oil palm plantations, and five mills to the company which increases NBPOL’s established plantation area by almost 50% and is comprised of estates close to its current centre of operations.NBPOL chairman Antonio Monteiro De Castro said: “The board was delighted to have completed this transformational acquisition, which is strategically and geographically an excellent fit.“The directors of NBPOL believe that the acquisition not only represents compelling value but also has the potential to be earnings enhancing for the company.“NBPOL will benefit from greatly increased production, economies of scale, operational efficiencies, and a larger potential source of fully segregated, palm oil, available direct from plantation to consumer,” he said.
Lae’s Voco Point opens new hardware
By GABRIEL LAHOC
THE Voco Point seafront in Lae, Morobe is experiencing a renaissance of business activities with the recently constructed Voco Point Hardware (VPH) officially opened last Saturday at a ceremony witnessed by members of the public, clients and customers.Operating as a subsidiary of Mukito Suppliers Ltd, VPH is a 100% nationally-owned hardware shop specialising in general, industrial, electrical and agricultural supplies.From humble beginnings in Goroka, VPH brings competition to other hardware suppliers in Lae, with a strong faith to provide the best service and prices to customers.The hardware shop may be small compared to other established hardware shops, however, the management is of the firm view that it is a very big achievement in terms of ownership and investment by any Papua New Guineans.“It’s a big achievement for all small nationally-owned businesses, as most times, these businesses have been overlooked by bigger foreign businesses,” proprietor Allan Mandi said.He started his business in 2004, from a start-up capital of K900, which he received as finish pay from another hardware shop.VPH is located at the junction of Frigate Street and Seagull Street, opposite Trends Beauty Saloon and The Nationals Lae bureau office, and has current staff strength of 20 working under manager Charlie Lapila.VPH promises very-competitive prices and services, which includes special deliveries, with major clients from the rural districts services in Eastern Highlands such as Department of Agriculture and Livestock and the University of Goroka.
THE Voco Point seafront in Lae, Morobe is experiencing a renaissance of business activities with the recently constructed Voco Point Hardware (VPH) officially opened last Saturday at a ceremony witnessed by members of the public, clients and customers.Operating as a subsidiary of Mukito Suppliers Ltd, VPH is a 100% nationally-owned hardware shop specialising in general, industrial, electrical and agricultural supplies.From humble beginnings in Goroka, VPH brings competition to other hardware suppliers in Lae, with a strong faith to provide the best service and prices to customers.The hardware shop may be small compared to other established hardware shops, however, the management is of the firm view that it is a very big achievement in terms of ownership and investment by any Papua New Guineans.“It’s a big achievement for all small nationally-owned businesses, as most times, these businesses have been overlooked by bigger foreign businesses,” proprietor Allan Mandi said.He started his business in 2004, from a start-up capital of K900, which he received as finish pay from another hardware shop.VPH is located at the junction of Frigate Street and Seagull Street, opposite Trends Beauty Saloon and The Nationals Lae bureau office, and has current staff strength of 20 working under manager Charlie Lapila.VPH promises very-competitive prices and services, which includes special deliveries, with major clients from the rural districts services in Eastern Highlands such as Department of Agriculture and Livestock and the University of Goroka.
Sunday, May 2, 2010
EC to prepare businesses for opportunities in LNG
By SHEILA LASIBORI
PORT Moresby-based Enterprise Centre (EC) has been contracted to prepare PNG businesses for business opportunities in the PNG liquefied natural gas (LNG) project. The EC within the PNG Institute of Banking and Business Management (PNGIBBM) at the ToRobert business training centre at Konedobu is under a five-year contract with project operator Esso Highlands Ltd to prepare the vying business organisations to meet global business standards.And EC will not be awarding contracts for the PNG LNG project but assist businesses prepare themselves for opportunities in the project, PNGIBBM executive director Ray Clark said.The contract agreement was signed between the parties on Jan 19 this year, Mr Clark said.“Our job is to prepare businesses in the best way we can. We do not decide on the selection of businesses.“We facilitate communication between domestic businesses, suppliers, contractors and subcontractors.“In effect, we are a country notice board,” Mr Clark said, after several questions on EC’s business database it created recently to assist business orgnisations that needed its help to meet business requirements.He said EC was maintaining a PNG Supplier Database.Mr Clark also said to date, there was no business development centre in the country to assist businesses to be viable to reach greater heights in their operations.
PORT Moresby-based Enterprise Centre (EC) has been contracted to prepare PNG businesses for business opportunities in the PNG liquefied natural gas (LNG) project. The EC within the PNG Institute of Banking and Business Management (PNGIBBM) at the ToRobert business training centre at Konedobu is under a five-year contract with project operator Esso Highlands Ltd to prepare the vying business organisations to meet global business standards.And EC will not be awarding contracts for the PNG LNG project but assist businesses prepare themselves for opportunities in the project, PNGIBBM executive director Ray Clark said.The contract agreement was signed between the parties on Jan 19 this year, Mr Clark said.“Our job is to prepare businesses in the best way we can. We do not decide on the selection of businesses.“We facilitate communication between domestic businesses, suppliers, contractors and subcontractors.“In effect, we are a country notice board,” Mr Clark said, after several questions on EC’s business database it created recently to assist business orgnisations that needed its help to meet business requirements.He said EC was maintaining a PNG Supplier Database.Mr Clark also said to date, there was no business development centre in the country to assist businesses to be viable to reach greater heights in their operations.
Oil Search to prove contractible reserves
THE two largely independent core gas development streams for Oil Search Ltd is the dedicated fields for the PNG liquefied natural gas (LNG) project and other fields and exploration.According to Oil Search (OSL) managing director Peter Botten, the objective is to prove up enough proven contractible reserves to underwrite trains three and four in the gas project.For the PNG LNG dedicated fields in the material core reserves, there is already proven (1P) 300 million barrels of oil equivalent (mmboe) – all sold. Then the proven and probable (2P) 500mmboe (OSL share).“Focus on moving 2P into 1P contractible category through field development optimisation and further appraisal.”Then in the other fields and exploration, existing proven and portable resources (2C) of 281mmboe (OSL share) yet to be commercialised.There are programmes to appraise these discoveries and explore for new gas underway, while developing material portfolio ex PNG LNG.
Local companies fear missing out on LNG project
By PATRICK TALU
LOCAL businesses and landowner companies (lancos) are concerned they are most likely to miss out on opportunities to participate in the PNG liquefied natural gas (LNG) as sub-contractors.Several landowner companies and local business representatives said the stringent criteria used by the engineering procurement construction (ECP) contractors for various phases of the LNG projects would put them on the losing end.The representatives raised their concerns during a workshop conducted by LNG Enterprise Centre to facilitate communication between national suppliers, contractors and subcontractors for the Esso Highlands operated LNG project in Port Moresby.Philo Lala, a representative from a landowner company along pipeline areas from Kairuku where the proposed LNG pipeline would run said: “Stringent criteria that the ECP contractors have will make us losers because we do not have the financial capacity especially for lancos as required.”Among those criteria, financial and capacity and track record of successful management and locally registered companies are the main factors that would determine the awarding of contracts.Ms Lala said: “Some of the lancos have been just registered in order to participate in the LNG project and how does ECP expected us to have the full financial capacity?“We have financial arrangements with lenders in place as well as partnership with existing businesses hoping that we would be awarded sub-contracts.She stressed that if such criteria were used, she feared they might be overlooked for contracts they should be have qualified for.
LOCAL businesses and landowner companies (lancos) are concerned they are most likely to miss out on opportunities to participate in the PNG liquefied natural gas (LNG) as sub-contractors.Several landowner companies and local business representatives said the stringent criteria used by the engineering procurement construction (ECP) contractors for various phases of the LNG projects would put them on the losing end.The representatives raised their concerns during a workshop conducted by LNG Enterprise Centre to facilitate communication between national suppliers, contractors and subcontractors for the Esso Highlands operated LNG project in Port Moresby.Philo Lala, a representative from a landowner company along pipeline areas from Kairuku where the proposed LNG pipeline would run said: “Stringent criteria that the ECP contractors have will make us losers because we do not have the financial capacity especially for lancos as required.”Among those criteria, financial and capacity and track record of successful management and locally registered companies are the main factors that would determine the awarding of contracts.Ms Lala said: “Some of the lancos have been just registered in order to participate in the LNG project and how does ECP expected us to have the full financial capacity?“We have financial arrangements with lenders in place as well as partnership with existing businesses hoping that we would be awarded sub-contracts.She stressed that if such criteria were used, she feared they might be overlooked for contracts they should be have qualified for.
Tuesday, April 27, 2010
OSL posts 5% gain
OIL Search Limited (OSL), PNG’s oil and gas producer yesterday posted a 5% gain in first-quarter output, while its sales revenue more than doubled on the back of higher oil and gas prices.The Australian-listed firm yesterday said output for the March quarter was two million barrels of oil equivalent (boe), compared with 1.90 million boe a year ago, thanks to new production wells drilled at mature oil fields.Revenue for the quarter jumped to A$133.8 million (about K366 million) from A$68.6 million (K187 million) last year.OSL said as with all other major Australian oil and gas firms, the company was realigning its business to focus on the burgeoning liquefied natural gas (LNG) sector.OSL, a partner with ExxonMobil Corp in the PNG LNG export project that was sanctioned last year, said the project has started to mobilise key engineers and contractors into the country and has begun early construction activities at the plant site.The A$15 billion (K41 billion) LNG project will produce 6.6 million tonnes per year of LNG via two production trains when it comes online in 2014.The firm did not give an update to its 2010 production guidance, which it has earlier estimated to fall 10% from last to be between 7.2-7.4 million boe.Most investors are looking beyond OSL’s short term performance figures and focusing on progress at the PNG LNG project, which is OSL’s first foray into the business.
20 foreign firms vie for LNG sub-contracts
AT LEAST 20 international companies are already vying to be subcontractors in the plant construction of the PNG liquefied natural gas (LNG) project.Although this information has not gone down well with PNG companies and those based in the country, major contractor Chiyoda-JGC Joint Venture (CJJV) says they have to adhere to the timeline pertaining to the construction phase of the project.Chiyoda’s external affairs director Takumi Hoshino said they were yet to award contracts to some of the international companies that had started talks with them and no company had been awarded contract to date.“We have to construct accomodation very fast to cater for mobilisation and to cater for 8,000 to 9,000 workers,” he said in relation to the camp facility proposed for Portion 152 on the outskirts of nation’s capital.“The subcontractors (have) informed that they will bring into PNG pre-fabricated goods for construction,” Takumi said, much to the disappointment of the representatives of PNG companies that attended the four-day workshop between local businesses and engineering, procurement and construction (EPC) contractors last week.This was at the Enterprise Centre of the Institute of Banking and Business Management (IBBM) at Konedobu, Port Moresby.Some of the attendees were particularly concerned that the subcontract business opportunities during the construction phase may be given to international companies.“What opportunity have you given to PNG companies to participate in the LNG project?” one attendee asked.In response, Mr Takumi said as main contractor CJJV (EPC3) was ready to maximise in giving opportunities to companies to be subcontractors.“There has to be quality control and experience. Then they will require a lot of work to do here so they will subcontract here (PNG),” he said of the vying international subcontractors.A response which got a participant to challenge ExxonMobil to put in place a monitoring system to make sure such contracting of PNG companies by international subcontractors did take place.“I do not think you can do everything because you have no experience … you never constructed a LNG plant before,” Mr Takumi told the gathering.The plant construction is scheduled to start in August/September following the site preparation set to start in June and the LNG training facility at Port Moresby Technical College will take care of training for local workers.He said the engineering and procurement (EP) work was currently being done by about 100 engineers in Yokohama.Mr Takumi also revealed that landowner company (lanco) Laba Holdings Ltd would engage in labour recruitment of most of the 2,000-2,500 local workers for the construction. It is also contracted to provide security.And CJJV will recruit 200-300 local staff for its 600 total staff ceiling for its main to be established at portion 152.“We have to engage with a local company. All recruitment will be done by the representative lanco,” he said adding CJJV had consulted Department of Labour and has a manager in charge of recruitment.Other opportunities available to lancos are: camp maintenance, camp catering, and transportation of workers from camps to job sites.
Local companies fear missing out on LNG project
By PATRICK TALU
LOCAL businesses and landowner companies (lancos) are concerned they are most likely to miss out on opportunities to participate in the PNG liquefied natural gas (LNG) as sub-contractors.Several landowner companies and local business representatives said the stringent criteria used by the engineering procurement construction (ECP) contractors for various phases of the LNG projects would put them on the losing end.The representatives raised their concerns during a workshop conducted by LNG Enterprise Centre to facilitate communication between national suppliers, contractors and subcontractors for the Esso Highlands operated LNG project in Port Moresby.Philo Lala, a representative from a landowner company along pipeline areas from Kairuku where the proposed LNG pipeline would run said: “Stringent criteria that the ECP contractors have will make us losers because we do not have the financial capacity especially for lancos as required.”Among those criteria, financial and capacity and track record of successful management and locally registered companies are the main factors that would determine the awarding of contracts.Ms Lala said: “Some of the lancos have been just registered in order to participate in the LNG project and how does ECP expected us to have the full financial capacity?“We have financial arrangements with lenders in place as well as partnership with existing businesses hoping that we would be awarded sub-contracts.She stressed that if such criteria were used, she feared they might be overlooked for contracts they should be have qualified for.
LOCAL businesses and landowner companies (lancos) are concerned they are most likely to miss out on opportunities to participate in the PNG liquefied natural gas (LNG) as sub-contractors.Several landowner companies and local business representatives said the stringent criteria used by the engineering procurement construction (ECP) contractors for various phases of the LNG projects would put them on the losing end.The representatives raised their concerns during a workshop conducted by LNG Enterprise Centre to facilitate communication between national suppliers, contractors and subcontractors for the Esso Highlands operated LNG project in Port Moresby.Philo Lala, a representative from a landowner company along pipeline areas from Kairuku where the proposed LNG pipeline would run said: “Stringent criteria that the ECP contractors have will make us losers because we do not have the financial capacity especially for lancos as required.”Among those criteria, financial and capacity and track record of successful management and locally registered companies are the main factors that would determine the awarding of contracts.Ms Lala said: “Some of the lancos have been just registered in order to participate in the LNG project and how does ECP expected us to have the full financial capacity?“We have financial arrangements with lenders in place as well as partnership with existing businesses hoping that we would be awarded sub-contracts.She stressed that if such criteria were used, she feared they might be overlooked for contracts they should be have qualified for.
Monday, April 26, 2010
Economy good: WB
WORLD Bank (WB) has delivered another positive outlook for PNG, highlighting the nation’s economic performance throughout the past two years and projecting a strong picture for its future prospects.The details and other information were delivered in the bank’s latest edition of its East Asia and Pacific Update, a six-monthly report into the region’s economic and social health.Despite operating against the external pressures resulting from the worst global recession in more than half a century, WB noted that PNG had recorded sound economic growth of 4.5% last year, compared to 6.7% in 2008.The WB reported that this strong performance was attributed in part to prudent fiscal policies and Government stimulus spending using payments from mineral resources saved over the commodity boom years.In moving forward, the bank has forecast strong opportunities for continued growth in future years particularly as developments of the groundbreaking liquefied natural gas (LNG) project continues to move ahead successfully.The historic project has the capacity to generate thousands of employment opportunities, inject billions of kina back into the local economy and stimulate significant follow on economic growth and development across PNG, and the wider Pacific region, throughout its 30-year lifespan.“Estimates suggest that the project will yield a 50 million barrels oil equivalent of natural gas and lead to US$3 billion (K8.2 billion) in average annual export receipts starting in 2013-14.By one consortium partner’s estimates, the project could turn PNG into the second largest LNG producer in Southeast Asia, after Malaysia and past Indonesia, by 2017.“Growth is projected to rebound strongly this year, as the construction of the LNG facility begins and the project directly and indirectly stimulates domestic demand.“Real GDP growth could increase by 0.8 percentage points a year during the construction phase alone and then perhaps by 15-25% per year during the 30-year life of the pro ject, doubling the country’s GDP in three to five years after the project becomes operational,” the Bank said.The LNG project and a number of other initiatives continue to instil renewed confidence amongst investors and consumers.
Sunday, April 25, 2010
BPNG to monitor economic activity in line with LNG project
THE Central Bank will be closely monitoring the increased economic activities in line with the start of the construction phase of the PNG LNG project.Central Bank governor Loi Bakani in the economic bulleting, for the December quarter last year, said this would be in line with the bank’s projection of inflation at 8% for this year.In the bulleting released on Tuesday, Mr Bakani said: “The upside risks to inflation could come from a weaker kina, increased economic activity and, thus, increased domestic demandpressures associated with the commencement of construction for the LNG project; high imported inflation, increased wage pressures, and excessive Government spending.“The Central Bank will closely monitor these developments and adjust its monetary policy stance wherenecessary to contain inflation,” he said.According to the bulleting an easing in the annual headline inflation from 10.2% in March quarter to 5.3% in the September quarter last year prompted BPNG to ease its monetary policy for December.The policy signaling interest rate, the kina facility rate (KFR) was reduced by 1.0% to 7.0%.Since then, KFR has been kept unchanged to this month in view of inflationary pressures.
Tuesday, April 20, 2010
Petromin,MISC join forces
MALAYSIA International Shipping Corporation (MISC) Berhad, one of the world’s renowned liquefied natural gas (LNG) transporters has entered into a joint venture (JV) agreement with Petromin PNG Shipping Limited a wholly-owned subsidiary of Petromin PNG Holdings Limited.MISC is a subsidy of Petronas, the Malaysian government owned oil and gas company.Petromin was created to hold the State’s oil, gas and mineral assets and is entrusted to maximise indigenous ownership and revenue gains in the mineral and petroleum sectors of Papua New Guinea.MISC in a statement on its website said it was selected by Petromin as its JV partner after going through a competitive bidding process where one other international LNG shipping company also participated.The purpose of the agreement is to incorporate a joint venture company (JVC) to provide LNG transportation solutions for LNG projects in PNG and to secure shipping contracts to support other general shipping requirements in the country.The agreement was signed last week at the Malaysian Petroleum Club in Kuala Lumpur by MISC’s Amir Hamzah Azizan, president and chief executive officer, while Joshua Kalinoe, Petromin managing director, signed for the PNG Government’s mineral and oil company.The ceremony was witnessed by Petromin chairman Brown Bai.The JVC, Western Pacific Shipping Ltd, which is to be incorporated in Bermuda Islands, will be 60% owned by MISC, with Petromin PNG Shipping Limited holding the remaining 40%.The JV establishment is also aimed at contributing to the export and import activities of PNG by providing world-class shipping capabilities, which eventually will be owned by Papua New Guineans, and modelled along MISC’s 40 years of extensive shipping experience.As one of the leading players in LNG shipping, with a total of 29 wholly owned and operated LNG carriers, this joint venture signals MISC’s entry into PNG’s oil and gas transportation industry. Through the joint venture, MISC will not only be expanding its energy related transportation business but will also contribute to Papua New Guinea’s capacity building requirements in the shipping business.The joint venture will also enhance the growth prospects of both companies in the LNG industry, especially in the Asia Pacific region. With the development of two and possibly three LNG projects, the Papua New Guinea LNG industry is estimated to grow to 14.6 million tonnes per annum by 2015.
Companies urged to improve to meet LNG requirements
By SHEILA LASIBORI
PAPUA New Guinea companies need to step up their standards to the business requirements associated with the PNG liquefied natural gas (LNG) project.This was because most PNG companies, especially landowner (lanco) companies, lack most or some of the eight basic requirements of a viable business entity, Maudi Banks-Bennett, the manager for the Enterprise Centre at the Institute of Banking and Business Management (IBBM), said.According to Ms Banks-Bennett the Port Moresby-based IBBM will assist project developer ExxonMobil and project operator Esso Highlands Ltd assess the viability of business organisations as they vie to sell their goods and services in the PNG LNG project through spin-off business activities.She was particularly concerned that some of the landowner companies that had sought information and assistance from IBBM lacked some or most of the standard required criteria.The eight points are: organisation and governance; business management; finance; personnel; safety, health and environment; quality; equipment; and citizenship and reputation. “If you want to succeed in business, this is the way for you. Papua New Guineans have to step up to the mark and perform,” she said, adding the normal process was that companies that approached the centre were included on a database and assessed along the criteria also upon consultation with the contractors and subcontractors.“We assess them for corporate governance, finance, human resource, planning and management, quality control, occupational health and safety,” she said shortly after her presentation on the role of IBBM in the LNG project through its association with project developers and contracted companies.She also outlined the business qualities that business entities should possess in order to be viable.This was during the workshop between local businesses and engineering, procurement and construction (EPC) contractors which started yesterday and will end on Friday.More than 100 participants from organisations ranging from engineering and construction companies, information technology, electrical companies, travel agents, wholesalers and distributors of heavy machinery and equipment aimed for such intense projects among others, and people claiming to represent lancos along the impacted areas especially in the Southern Highlands province.Ms Banks-Bennett said the workshop was for the centre to disseminate information on how the PNG-based companies could prepare themselves to meet all the necessary criteria to be able to venture in the project.
PAPUA New Guinea companies need to step up their standards to the business requirements associated with the PNG liquefied natural gas (LNG) project.This was because most PNG companies, especially landowner (lanco) companies, lack most or some of the eight basic requirements of a viable business entity, Maudi Banks-Bennett, the manager for the Enterprise Centre at the Institute of Banking and Business Management (IBBM), said.According to Ms Banks-Bennett the Port Moresby-based IBBM will assist project developer ExxonMobil and project operator Esso Highlands Ltd assess the viability of business organisations as they vie to sell their goods and services in the PNG LNG project through spin-off business activities.She was particularly concerned that some of the landowner companies that had sought information and assistance from IBBM lacked some or most of the standard required criteria.The eight points are: organisation and governance; business management; finance; personnel; safety, health and environment; quality; equipment; and citizenship and reputation. “If you want to succeed in business, this is the way for you. Papua New Guineans have to step up to the mark and perform,” she said, adding the normal process was that companies that approached the centre were included on a database and assessed along the criteria also upon consultation with the contractors and subcontractors.“We assess them for corporate governance, finance, human resource, planning and management, quality control, occupational health and safety,” she said shortly after her presentation on the role of IBBM in the LNG project through its association with project developers and contracted companies.She also outlined the business qualities that business entities should possess in order to be viable.This was during the workshop between local businesses and engineering, procurement and construction (EPC) contractors which started yesterday and will end on Friday.More than 100 participants from organisations ranging from engineering and construction companies, information technology, electrical companies, travel agents, wholesalers and distributors of heavy machinery and equipment aimed for such intense projects among others, and people claiming to represent lancos along the impacted areas especially in the Southern Highlands province.Ms Banks-Bennett said the workshop was for the centre to disseminate information on how the PNG-based companies could prepare themselves to meet all the necessary criteria to be able to venture in the project.
SMEC to carry out consultancy work
THE involvement of Snowy Mountain Engineering Consultants (SMEC) by the Hides Gas Special Purpose Authority (HGSPA) to carry out technical engineering consultancy on infrastructure projects in Hides is intended to bring tangible development to the relevant rural communities.Last month, a MoA was signed between the landowner group and SMEC that would ensure K30 million, when released by the Government under licenced-based benefits sharing agreement would cater for infrastructure development such as roads, bridges schools and hospitals.During the signing, it was highlighted that the agreement would pave the way for investment opportunities for rural communities in the Hides area by way of planning and infrastructure development through the benefits from the Hides Gas SPA and the PNG LNG projects.The MoA was signed in Port Moresby by SMEC country manager Richard Farrell and Hides Gas SPA chairman Lemson Mapiria.The HGSPA is an entity established by virtue of the National Executive Council decision in 2004 under the Local Level Government Act of Papua New Guinea.The MoA would then be presented by the HGSPA to the respective Government agencies which include the departments of Petroleum and Energy, National Planning and District development and Treasury.From the submission made to the Government department’s funds would be made available before a feasibility study is underway with the consultancy by SMEC.
InterOil signs joint venture with Mitsui
INTEROIL Corporation has signed a joint venture agreement with Japanese oil company, Mitsui & Co Ltd to jointly operate and fund the preliminary works involved to develop a proposed condense striping facility at InterOil’s Elk and Antelope field in the Gulf province.In a statement last Thursday, InterOil announced that the preliminary work programme was for all the works required to take them through the Front End Engineering and Design (FEED) stage for the construction of a condensate stripping plant, to the point of final investment decision (FID).The project is proposed to be designed to process 400 million standard cubic feet per day (mmscf/day) of well head gas with an anticipated yield of approximately 9,000 barrels (bbls) of condensate per day.Dry gas will be re-injected into the reservoir for storage until the proposed LNG facility is constructed.The condensate will be barged to the InterOil refinery in Port Moresby for processing and sale.InterOil and Mitsui will each be responsible for half of the capital expenditure involved in the preliminary works and Mitsui will fund InterOil’s share.Standard conditions of the agreements include the completion of FEED, an EPC agreement, and the definitive agreements by Dec 31, necessary to reach FID.In the event that FID is not reached, InterOil will be required to refund the capital expenditure incurred to date within a specified period.InterOil said it was looking forward to a long and prosperous relationship with Mitsui, one of the largest energy conglomerates in Japan.
City realty prices to soar
By PATRICK TALU
THE real estate industry in Port Moresby is projected to boom with high rental and purchasing prices.A survey indicated that in light of the LNG project and economic growth, real estate prices are expected to escalate as of this year.Jonathan Gouy, an economic consultant to the National Government during the PNG Update seminar last week, said demand forces had been the factor behind the industry to an extent where ordinary tenants and buyers could not be able to afford.Mr Gouy said from the 340 commercial and residential properties that had been surveyed, it was found to be very expensive with the highest price for a property at K3.7 million in zone A which comprised of town, Paga Hill, Touaguba Hill, Konedobu, Ela Beach and 2-Mile Hill.To buy a house, apartment or unit at Zone A, an average price is K2.1 million and cheapest at K0.9 million.The average rental price for these areas is K200,000 per year, most expensive K520,000 and the cheapest is K42,000.Mr Gouy said under Zone B, areas around Gordon, Boroko, Korobosea, 6-Mile, Hohola, Waigani, Koki and Badili, an average price to buy a house is K720,000, most expensive at K3.8 million and cheapest at K160,000.The cheapest for rent is at K35,000 year while most expensive is K310,000.To buy a house around Zone C: Gerehu, Kila Kila, 7-Mile, 8-Mile, 9-Mile, Tokarara, Rainbow, Ensisi Valley and Morata, the most expensive is at K2.2 million while cheapest is at K110,000.To rent, the cheapest is at K10,000 year while the most expensive is at K85,000.Mr Goys said the high prices were due to high demands and low supply making ordinary people to fend for themselves at squatter settlements. Due to the high property prices, city dwellers are faced with homelessness, financial stress and upward pressure on prices of domestic goods and encourages property speculation, rather than productive investment and, at the same time, discourages investment by locals and foreignersHe said it needed considerable efforts from price regulators to control prices.
Last year good for superfunds
By PATRICK TALU
OPERATING against the challenges of the global economic crisis, PNG’s largest superannuation fund, Nambawan Super Limited (NSL), achieved strong results and growth last year with its most recent report announcing a solid profit of K191 million for the year after tax.Chief executive officer for Kina Securities Syd Yates yesterday said clearly the superannuation industry in PNG was continuing to develop strongly, despite recent turbulence on the global market, with the sector benefiting from improved regulation and increased economic maturity and political stability within the nation during the past decade.In making the announcement last month, NSL chairman Sir Nagora Bogan said the fund had achieved strong growth in its total assets, which increased by K210 million throughout the year to K2.83 billion.In addition, total membership of the NSL and its retirement savings accounts also grew strongly, totalling 113,546 at the year’s end.“By any measure, last year was a difficult year for business and investment.“The global financial crisis battered a wide range of industry sectors around the world, tightening the global flow of money and putting intense pressure on investment markets,” Sir Nagora said.“Against these very challenging conditions, the board is very pleased to report that the fund has delivered yet another solid result for our members.“The board’s prudent approach to managing members’ money has stood the fund in very good stead. This places the fund in a very strong position to take advantage of improvements in the various markets for the benefit of our members,” he said.Mr Yates said the announcement by NSL came just weeks after another of PNG’s super funds, the National Superannuation Fund Limited (Nasfund), also reported strong results with a net profit of K205.617 million for last year.“It is worth noting that these results have seen both NSL and Nasfund outperform many of the leading international superannuation funds throughout the past year.“Clearly, PNG’s burgeoning financial sector is continuing to play a vital role in the lives of all individuals as they seek to maximise their economic foundations, plan for major expenses and invest funds back into the domestic economy through development initiatives and infrastructure programmes.“Importantly, a strong and healthy financial industry will ensure that PNG can build a solid foundation for sustained economic growth and prosperity in the years to come,” Mr Yates said.He added that the country was continuing to see the benefits of improved industry regulation, now overseen by the Bank of Papua New Guinea, which has instilled strong consumer confidence in the financial market and subsequently allowed for increased growth and expansion of PNG’s financial institutions.Importantly this strong growth is a genuine reflection of the increased maturity throughout PNG to financial services, and to the benefits of responsible economic and fiscal management which have been a key feature of our nation in recent years.Clearly, Papua New Guineans at all levels are continuing to embrace the savings culture, with many now actively looking towards traditional methods of asset enhancement, be it superannuation or share market investment.
OPERATING against the challenges of the global economic crisis, PNG’s largest superannuation fund, Nambawan Super Limited (NSL), achieved strong results and growth last year with its most recent report announcing a solid profit of K191 million for the year after tax.Chief executive officer for Kina Securities Syd Yates yesterday said clearly the superannuation industry in PNG was continuing to develop strongly, despite recent turbulence on the global market, with the sector benefiting from improved regulation and increased economic maturity and political stability within the nation during the past decade.In making the announcement last month, NSL chairman Sir Nagora Bogan said the fund had achieved strong growth in its total assets, which increased by K210 million throughout the year to K2.83 billion.In addition, total membership of the NSL and its retirement savings accounts also grew strongly, totalling 113,546 at the year’s end.“By any measure, last year was a difficult year for business and investment.“The global financial crisis battered a wide range of industry sectors around the world, tightening the global flow of money and putting intense pressure on investment markets,” Sir Nagora said.“Against these very challenging conditions, the board is very pleased to report that the fund has delivered yet another solid result for our members.“The board’s prudent approach to managing members’ money has stood the fund in very good stead. This places the fund in a very strong position to take advantage of improvements in the various markets for the benefit of our members,” he said.Mr Yates said the announcement by NSL came just weeks after another of PNG’s super funds, the National Superannuation Fund Limited (Nasfund), also reported strong results with a net profit of K205.617 million for last year.“It is worth noting that these results have seen both NSL and Nasfund outperform many of the leading international superannuation funds throughout the past year.“Clearly, PNG’s burgeoning financial sector is continuing to play a vital role in the lives of all individuals as they seek to maximise their economic foundations, plan for major expenses and invest funds back into the domestic economy through development initiatives and infrastructure programmes.“Importantly, a strong and healthy financial industry will ensure that PNG can build a solid foundation for sustained economic growth and prosperity in the years to come,” Mr Yates said.He added that the country was continuing to see the benefits of improved industry regulation, now overseen by the Bank of Papua New Guinea, which has instilled strong consumer confidence in the financial market and subsequently allowed for increased growth and expansion of PNG’s financial institutions.Importantly this strong growth is a genuine reflection of the increased maturity throughout PNG to financial services, and to the benefits of responsible economic and fiscal management which have been a key feature of our nation in recent years.Clearly, Papua New Guineans at all levels are continuing to embrace the savings culture, with many now actively looking towards traditional methods of asset enhancement, be it superannuation or share market investment.
Participation vital in PNG LNG project
THE engagement and development of Papua New Guinea’s businesses is an important aspect of the PNG LNG project’s national content plan and the Oil and Gas Act.Insomuch, the establishment of the Enterprise Centre (EC) by Esso Highlands Ltd, the subsidiary of ExxonMobil-led LNG project in partnership with the PNG Institute of Banking and Business Management (IBBM) became realty when it opened the temporary EC centre in Port Moresby.Executive director of IBBM Ray Clark, when officiating at the opening, told bankers, officials of Esso Highlands and reporters that the establishment of EC is an important part of component of the PNG LNG project local business development programme.Mr Clark said the overall object of the programme was to ensure efficient communications with EPC contractor, sub-subcontractors, and the analysis of the gaps of PNG and to assist domestic business build their business skills.Amongst others, the EC primary functions is to build capacities of PNG business that seek in some form of business activities with the LNG project.Mr Clark said already landowners from the LNG affected LNG areas were enrolling at the institution for free with all cost met by Esso Highlands.He stressed that supplier developments involved the transfer of skills and increasing local suppliers capabilities to help them meet the global standard that were expected for contractors with the LNG project and other industries and such establishment would encourage local business to prosper.
Tuesday, April 13, 2010
PNG oil to account for 0.13% of regional demand
PAPUA New Guinea’s oil supply is projected to account for 0.13% of the Asia-Pacific regional oil demand by 2014, while providing 0.38% of supply, according to a new PNG Oil and Gas report from US-based BusinessWire Research and Markets.PNG’s share of gas consumption last year was an estimated 0.03%, while its share of production is put at 0.04%.By 2014, its share of gas consumption is forecasted to be 0.04%, with the country accounting for 3.69% of supply in the Asia-Pacific region.The report said there was indirect State involvement in the upstream oil and gas industry, as the Government was a minority owner of Oil Search and ExxonMobil, which are responsible for the country’s current oil and gas supply, as well as being a partner in the LNG project.
Friday, April 9, 2010
KAML posts K4.26m profit for 2009
THE nation’s first publicly listed investment company, Kina Asset Management Ltd (KAML), has posted a net profit after tax of K4.26 million for 2009.The company also increased its investment portfolio by K3.84 million, or 9.38%, from K40.89 million at the end of December 2008 to K44.72 million at the end of December 2009.This represented a significant turnaround for the company after recording a net loss of K4.14 million in its launch year, 2008, with the adversaries of the global financial crisis.In moving forward, chairman Sir Rabbie Namaliu said KAML was continuing its expansion strategy and looking at increasing its exposure to international markets including the United States and Asia.He said the board of KAML would continue to pursue a range of strategic investment opportunities with the aim of maximising long-term benefits for its shareholders.
Devt projects in PNG, NT, Qld opening jobs bonanza
By YEHIURA HRIEHWAZI in Brisbane
BILLIONS of dollars worth of development projects in PNG, Queensland and the Northern Territory of Australia, are opening up technical skills job-market bonanza for young Papua New Guineans.The projects are top on the agenda for discussions during the coming PNG-Australia business council forum in Townsville on May 16 - 18.Is PNG ready to benefit from the jobs that will become available when swags of gas, goal mines and mineral projects swing into construction?This is the questions that bothers Paul Nerau, PNG’s consul-general in Brisbane, Australia.There will be thousands of job opportunities in PNG’s two LNG projects, condensate stripping project in the Gulf province, Frieda, Wafi and Golpu mines and gas, iron ore and coal projects in Queensland and Northern Territory, he said.The enormity of the projects that are worth tens of billions of dollars are just mind-boggling, he said.Nerau said institutions like the PNG Sustainable Development Program (PNGSDP) should invest huge sums of money – tens of millions – into training of human resources to take advantage of the massive job market that is “at our door step.”“We must train up our young people to Australian standards so that they can work here in Queensland as well as in PNG projects and go anywhere in the world,” he told The National.He said it was a mockery for the people of Western province that PNGSDP only selected 12 students and sent them to Australia for training.“That’s not enough, it should send hundreds of them down for training every year. That money is for that purpose, it is for the development of Western province and their human resources,” he said.Nerau said this when commenting on the billions of dollars in project developments that were going into Northern Australia and PNG and the immense benefits that come with them for the two countries.Meanwhile, the general manager of Townsville Enterprise Ltd (TEL) Dr Lisa McDonald said investments into the two countries would be in the tens of billions of dollars.“Liquified natural gas projects in Papua New Guinea, Darwin and Gladstone, major coal projects in central Queensland, mining projects in the North West minerals province and infrastructure developments such as expansion of the Abbot Point coal export facility will create huge demand for skills, expertise and products,’’ Dr McDonald said.“Townsville companies can reap a huge bonanza, so it is important they put in the groundwork and place their skills and products on record.’’Dr McDonald said TEL had studied the PNG gas project, which would create work for many thousands of Papua New Guineans.
BILLIONS of dollars worth of development projects in PNG, Queensland and the Northern Territory of Australia, are opening up technical skills job-market bonanza for young Papua New Guineans.The projects are top on the agenda for discussions during the coming PNG-Australia business council forum in Townsville on May 16 - 18.Is PNG ready to benefit from the jobs that will become available when swags of gas, goal mines and mineral projects swing into construction?This is the questions that bothers Paul Nerau, PNG’s consul-general in Brisbane, Australia.There will be thousands of job opportunities in PNG’s two LNG projects, condensate stripping project in the Gulf province, Frieda, Wafi and Golpu mines and gas, iron ore and coal projects in Queensland and Northern Territory, he said.The enormity of the projects that are worth tens of billions of dollars are just mind-boggling, he said.Nerau said institutions like the PNG Sustainable Development Program (PNGSDP) should invest huge sums of money – tens of millions – into training of human resources to take advantage of the massive job market that is “at our door step.”“We must train up our young people to Australian standards so that they can work here in Queensland as well as in PNG projects and go anywhere in the world,” he told The National.He said it was a mockery for the people of Western province that PNGSDP only selected 12 students and sent them to Australia for training.“That’s not enough, it should send hundreds of them down for training every year. That money is for that purpose, it is for the development of Western province and their human resources,” he said.Nerau said this when commenting on the billions of dollars in project developments that were going into Northern Australia and PNG and the immense benefits that come with them for the two countries.Meanwhile, the general manager of Townsville Enterprise Ltd (TEL) Dr Lisa McDonald said investments into the two countries would be in the tens of billions of dollars.“Liquified natural gas projects in Papua New Guinea, Darwin and Gladstone, major coal projects in central Queensland, mining projects in the North West minerals province and infrastructure developments such as expansion of the Abbot Point coal export facility will create huge demand for skills, expertise and products,’’ Dr McDonald said.“Townsville companies can reap a huge bonanza, so it is important they put in the groundwork and place their skills and products on record.’’Dr McDonald said TEL had studied the PNG gas project, which would create work for many thousands of Papua New Guineans.
Wednesday, April 7, 2010
Hydropower important for S’wak: Taib
MIRI: Sarawak cannot afford to have its plans to tap its hydroelectric generation potential derailed by those who had no interest in seeing the people in the state enjoying a better life, Chief Minister Tan Sri Abdul Taib Mahmud said here Saturday.
Branding those who opposed the plans as “struggling on a narrow single line crusade,” he said the group had failed to look at the problem of developing Sarawak as a whole.
Taib, who is also state Resource Planning and Management Minister, said Sarawak needed to convert its rich water resource into an income-generating commodity to cope with the growing expenditure faced in implementing development projects in the state.
He said part of the power generated from the hydroelectric projects in the state would be used for the development of industries in the Sarawak Corridor of Renewable Energy (Score) that had been expected to create more employment opportunities in the state and enhance its economic position.
Sarawak plans to build 12 hydroelectric dams at Ulu Air, Metjawah, Belaga, Baleh, Belepeh, Lawas, Tutoh, Limbang, Baram, Murum and Linau rivers. The plan will also see an extension to the Batang Ai Dam. All these dams are in addition to the 2,400MW Bakun Dam which will push up the total power generating capacity in Sarawak to 7,000MW by 2020, an increase of more than 600 percent from the current capacity.
Taib also said water consumers would have to share the government's burden in providing clean water supply in the state.
Dismissing the notion that the government should not charge consumers for water supply, he said the task of bringing clean water to meet the people's needs involved expenditure.
"I don't believe any state government can give free (clean) water (supply), regardless of which party is in power," he added in an apparent reference to the attempt by the PKR-led Selangor government to supply free water for people in the state.
He had earlier launched the World Water Day celebration here. - Bernama
Branding those who opposed the plans as “struggling on a narrow single line crusade,” he said the group had failed to look at the problem of developing Sarawak as a whole.
Taib, who is also state Resource Planning and Management Minister, said Sarawak needed to convert its rich water resource into an income-generating commodity to cope with the growing expenditure faced in implementing development projects in the state.
He said part of the power generated from the hydroelectric projects in the state would be used for the development of industries in the Sarawak Corridor of Renewable Energy (Score) that had been expected to create more employment opportunities in the state and enhance its economic position.
Sarawak plans to build 12 hydroelectric dams at Ulu Air, Metjawah, Belaga, Baleh, Belepeh, Lawas, Tutoh, Limbang, Baram, Murum and Linau rivers. The plan will also see an extension to the Batang Ai Dam. All these dams are in addition to the 2,400MW Bakun Dam which will push up the total power generating capacity in Sarawak to 7,000MW by 2020, an increase of more than 600 percent from the current capacity.
Taib also said water consumers would have to share the government's burden in providing clean water supply in the state.
Dismissing the notion that the government should not charge consumers for water supply, he said the task of bringing clean water to meet the people's needs involved expenditure.
"I don't believe any state government can give free (clean) water (supply), regardless of which party is in power," he added in an apparent reference to the attempt by the PKR-led Selangor government to supply free water for people in the state.
He had earlier launched the World Water Day celebration here. - Bernama
Business and water – should we be concerned?
BUSINESS AGENDABy TAY KAY LUAN
MALAYSIANS who take water for granted are reminded once again during this current hot and dry season of the need to conserve and not to take this precious resource for granted.
Water as a resource has been one of the main drivers behind the rapid industry development and good standard of living. Water consumption is expected to double every two decades but rising affluence and wealth accumulation mean that people are now using on average six times more water than a century ago.
The most popular approaches to water issues include measures for greater efficiency, recycling and reuse, and employee education. – Reuters
Water sustainability is anything but clear.
In a rapidly changing world, there are now challenges of conserving what we have and overcoming the problems of water too contaminated to consume.
Although the planet’s surface is covered with water, less than 1.5% is freshwater which is safe for human consumption.
The Stockholm International Water Institute predicted by 2075, the number of people with chronic water shortages is estimated to be between 3 billion and 7 billion. The United Nations sees this as “one of the largest public health issues of our time.”
Business risks
Virtually every industrial activity requires water. The likes of manufacturing, power generation, food processing, agriculture, paper and drinks sectors are particularly water intensive. That’s why water issues are of serious concerns to business.
One immediate action is to determine the material water impacts and how they can be better managed.
One of the tools, Global Water Tool, released by the World Business Council for Sustainable Development, is to help companies map out the use the water for their businesses – also to assess risks relative to their supply chains.
A recent ACCA discussion paper on Water: The Next Carbon highlighted that companies, as major users of water, could play a key role in promoting better water management. Several business risks related to water were also highlighted in the paper.
First there is the physical risk arising through flooding, pollution, and droughts in regions where business operates. All businesses would be affected by the increased operating costs resulting from diminishing water supplies.
Companies would also see their capital expenditure rise as they are forced to find expensive new ways of treating and extracting water. Such financial risks are not healthy to the competitiveness of the industry.
There is also the regulatory risk – where licensing or privatisation of water can possibly affect the quality of water resources, and costs being passed on to consumers.
The probability of reputation damage presents reputation risk for the company. As access to water decreases, people will be looking for “scagegoats” – as evidenced whenever the supply of water resource is temporarily halted.
Companies which manage the operations and supply chains of the water resources will put their reputation at risks whenever, frequency of consumer complaints of poor delivery and services increases.
In the food and drink companies for example, wherever there is a limit on water supply, the immediate impact on prices is quite imminent.
Business responses
Agriculture, drinks and food processing are most vulnerable to water shortages.
The threat of water scarcity makes the credit crunch relatively lightweight! Once companies have a hold on their overall water use, the next phase is obviously to reduce it. The most popular approaches include measures for greater efficiency, recycling and reuse, and employee education.
SABMiller, the global brewery company, has identified water as one of its three “opportunities”’ for global leadership.
Its “5R” model of water responsibility includes changing attitudes and behaviours towards reducing water consumption across its business operations; reusing waste waters within facilities; recycling using new technologies within the plant; redistributing clean water to the community it operates; and influencing farmers to be more responsible on water use.
Swiss food giant Nestle has a more comprehensive policy towards water consumption. As part of its environment strategy the company is committed to continue reducing the amount of water used per kilogramme of food and drink produced, assuring its activities within its supply chain, respect water resources – both conserving and recycling.
Even Intel reclaims more than 3 billion gallons of water a year by collecting and recycling wastewater, solid waste and chemical waste.
Water consumption is high in IT manufacturing plants – clean water is a must for production. Indeed water availability is the lifeblood to business – and therefore critical. Water strategy as part of sustainable solutions is to apply water conservation and demand management measures.
This involves better management of water productivity and quality including working towards a zero effluent discharge.
There is also a need to engage with government and other stakeholders on public policy of water – the extent to how water use should be regulated, monitored and managed. It is important to recognise that water footprint once exceeds its capacity – it would be an almost impossible task to reverse.
As big consumers, businesses must share this responsibility more seriously as fundamentally it is a resource we can’t do without.
·The writer is ACCA director, Asean & Australasia. The full report ‘Water, the next carbon?’ is available at: http://www.accaglobal.com/documents/WaterFootprinting.pdf
MALAYSIANS who take water for granted are reminded once again during this current hot and dry season of the need to conserve and not to take this precious resource for granted.
Water as a resource has been one of the main drivers behind the rapid industry development and good standard of living. Water consumption is expected to double every two decades but rising affluence and wealth accumulation mean that people are now using on average six times more water than a century ago.
The most popular approaches to water issues include measures for greater efficiency, recycling and reuse, and employee education. – Reuters
Water sustainability is anything but clear.
In a rapidly changing world, there are now challenges of conserving what we have and overcoming the problems of water too contaminated to consume.
Although the planet’s surface is covered with water, less than 1.5% is freshwater which is safe for human consumption.
The Stockholm International Water Institute predicted by 2075, the number of people with chronic water shortages is estimated to be between 3 billion and 7 billion. The United Nations sees this as “one of the largest public health issues of our time.”
Business risks
Virtually every industrial activity requires water. The likes of manufacturing, power generation, food processing, agriculture, paper and drinks sectors are particularly water intensive. That’s why water issues are of serious concerns to business.
One immediate action is to determine the material water impacts and how they can be better managed.
One of the tools, Global Water Tool, released by the World Business Council for Sustainable Development, is to help companies map out the use the water for their businesses – also to assess risks relative to their supply chains.
A recent ACCA discussion paper on Water: The Next Carbon highlighted that companies, as major users of water, could play a key role in promoting better water management. Several business risks related to water were also highlighted in the paper.
First there is the physical risk arising through flooding, pollution, and droughts in regions where business operates. All businesses would be affected by the increased operating costs resulting from diminishing water supplies.
Companies would also see their capital expenditure rise as they are forced to find expensive new ways of treating and extracting water. Such financial risks are not healthy to the competitiveness of the industry.
There is also the regulatory risk – where licensing or privatisation of water can possibly affect the quality of water resources, and costs being passed on to consumers.
The probability of reputation damage presents reputation risk for the company. As access to water decreases, people will be looking for “scagegoats” – as evidenced whenever the supply of water resource is temporarily halted.
Companies which manage the operations and supply chains of the water resources will put their reputation at risks whenever, frequency of consumer complaints of poor delivery and services increases.
In the food and drink companies for example, wherever there is a limit on water supply, the immediate impact on prices is quite imminent.
Business responses
Agriculture, drinks and food processing are most vulnerable to water shortages.
The threat of water scarcity makes the credit crunch relatively lightweight! Once companies have a hold on their overall water use, the next phase is obviously to reduce it. The most popular approaches include measures for greater efficiency, recycling and reuse, and employee education.
SABMiller, the global brewery company, has identified water as one of its three “opportunities”’ for global leadership.
Its “5R” model of water responsibility includes changing attitudes and behaviours towards reducing water consumption across its business operations; reusing waste waters within facilities; recycling using new technologies within the plant; redistributing clean water to the community it operates; and influencing farmers to be more responsible on water use.
Swiss food giant Nestle has a more comprehensive policy towards water consumption. As part of its environment strategy the company is committed to continue reducing the amount of water used per kilogramme of food and drink produced, assuring its activities within its supply chain, respect water resources – both conserving and recycling.
Even Intel reclaims more than 3 billion gallons of water a year by collecting and recycling wastewater, solid waste and chemical waste.
Water consumption is high in IT manufacturing plants – clean water is a must for production. Indeed water availability is the lifeblood to business – and therefore critical. Water strategy as part of sustainable solutions is to apply water conservation and demand management measures.
This involves better management of water productivity and quality including working towards a zero effluent discharge.
There is also a need to engage with government and other stakeholders on public policy of water – the extent to how water use should be regulated, monitored and managed. It is important to recognise that water footprint once exceeds its capacity – it would be an almost impossible task to reverse.
As big consumers, businesses must share this responsibility more seriously as fundamentally it is a resource we can’t do without.
·The writer is ACCA director, Asean & Australasia. The full report ‘Water, the next carbon?’ is available at: http://www.accaglobal.com/documents/WaterFootprinting.pdf
New water policy in the pipeline
KUALA LUMPUR: A consulting services company has been engaged to formulate a National Water Resources Policy after reviewing the entire spectrum of water resources management in the country.
Ranhill Consulting Sdn Bhd had earlier been involved in a preliminary year-long study, costing RM6.8mil, on such a policy.
Deputy Natural Resources and Environment Minister Tan Sri Joseph Kurup, who made the announcement yesterday, said the study would focus on the need for standard and coordinated laws and regulations on the management and development of water resources.
Sales pitch: Singer Valve president Brian Blann briefing Raja Nazrin at the Asia Water 2010 exhibition in Kuala Lumpur Wednesday.
“In general, water resource management in this country is conducted differently, resulting in overlapping interests and conflicts among stakeholders when it comes to water development projects.
“Thus, this study will provide for more effective management of national water resources at the federal and state levels,” he said at the opening of the Asia Water Resource Management Seminar 2010.
He said the integrated approach had long been considered, and it was now time for the country to adopt more effective means of managing water resources.
Kurup said the Economic Planning Unit in the Prime Minister’s Department and the Department of Drainage Irrigation and had in 2008 completed a study on the effective implementation of integrated water resources.
There were nine best management practices in the report to enhance public awareness and capacity-building under various programmes on integrated water resources management, he said.
Ranhill Consulting Sdn Bhd had earlier been involved in a preliminary year-long study, costing RM6.8mil, on such a policy.
Deputy Natural Resources and Environment Minister Tan Sri Joseph Kurup, who made the announcement yesterday, said the study would focus on the need for standard and coordinated laws and regulations on the management and development of water resources.
Sales pitch: Singer Valve president Brian Blann briefing Raja Nazrin at the Asia Water 2010 exhibition in Kuala Lumpur Wednesday.
“In general, water resource management in this country is conducted differently, resulting in overlapping interests and conflicts among stakeholders when it comes to water development projects.
“Thus, this study will provide for more effective management of national water resources at the federal and state levels,” he said at the opening of the Asia Water Resource Management Seminar 2010.
He said the integrated approach had long been considered, and it was now time for the country to adopt more effective means of managing water resources.
Kurup said the Economic Planning Unit in the Prime Minister’s Department and the Department of Drainage Irrigation and had in 2008 completed a study on the effective implementation of integrated water resources.
There were nine best management practices in the report to enhance public awareness and capacity-building under various programmes on integrated water resources management, he said.
Fuel prices go up from today
Picture and story by PATRICK TALU
FUEL consumers nationwide will now dig deeper into their pockets as fuel prices for petrol, diesel and kerosene go up from today.Consumers will pay K3.33 per litre for petrol (from K3.16) and K2.75 per litre for diesel (from K2.53). Kerosene price rises from K2.42 to K2.60 per litre.Independent Consumer and Competition Commission (ICCC) acting chief executive officer Elastus Geroro blamed the rise in fuel prices on an increased crude oil price, and a fall by the kina against the US dollar on the exchange rate.High cost in transporting the products also contributed to the rise.He said on monthly average comparison, crude oil price rose significantly last month, increasing by 6.48% compared to a 2.7% reduction in February.Mr Geroro said as the global economy continued to show signs of recovery, crude oil prices began to rise in a region where China has a big influence on other Asia-Pacific economies.He stressed that change in the fuel prices were determined by global energy demand and, given that crude oil is a globally traded commodity, it was expected that the demand and supply determination in the major regions around the world against the US dollar would continue to cause price changes at any time in the future.He said with crude oil trading above US$70 per barrel for the third consecutive month, prices would continue to fluctuate in the coming months.He urged fuel suppliers and retailers not to charge consumers above the set prices.
FUEL consumers nationwide will now dig deeper into their pockets as fuel prices for petrol, diesel and kerosene go up from today.Consumers will pay K3.33 per litre for petrol (from K3.16) and K2.75 per litre for diesel (from K2.53). Kerosene price rises from K2.42 to K2.60 per litre.Independent Consumer and Competition Commission (ICCC) acting chief executive officer Elastus Geroro blamed the rise in fuel prices on an increased crude oil price, and a fall by the kina against the US dollar on the exchange rate.High cost in transporting the products also contributed to the rise.He said on monthly average comparison, crude oil price rose significantly last month, increasing by 6.48% compared to a 2.7% reduction in February.Mr Geroro said as the global economy continued to show signs of recovery, crude oil prices began to rise in a region where China has a big influence on other Asia-Pacific economies.He stressed that change in the fuel prices were determined by global energy demand and, given that crude oil is a globally traded commodity, it was expected that the demand and supply determination in the major regions around the world against the US dollar would continue to cause price changes at any time in the future.He said with crude oil trading above US$70 per barrel for the third consecutive month, prices would continue to fluctuate in the coming months.He urged fuel suppliers and retailers not to charge consumers above the set prices.
WB wants trust funds as part of Govt budget
By YEHIURA HRIEHWAZI in Brisbane
THE billions of kina stashed away in trust accounts should be integrated into the central Government’s consolidated revenue fund for better control and to help manage PNG’s volatility from external shocks, the World Bank has recommended.The bank said the economic growth would rebound this year because of the high demand from the LNG project as it swings into construction posing dangers for high inflation and deficit. It also raised concerns over the use of trust accounts on projects in villages with little or no accountability.In its review of the East Asia and Pacific economies released yesterday, the WB said PNG should consider reforming the trust accounts system and fully integrate it with the Government budget.It said PNG might consider establishing a non-renewable resource fund that, as a single savings and stabilisation fund, would be fully integrated with the macro framework, budgetary system, and spending priorities and that will seek to maximise the long-run development impact of the country’s resource wealth.“More importantly, the Government needs to strengthen its commitment to its medium-term fiscal strategy (MTFS).“The strategy aims to enhance the country’s macroeconomic stability by insulating the public budget from volatility in mineral revenues.“The Government had prudently adhered to elements of its fiscal strategy years before the formal adoption of the fiscal framework in 2008.“Windfall mineral revenues from the commodity boom years were saved in trust accounts that were built up to 14% of GDP by the end of 2008.”More expensive public external debt was paid down to 13.2% of GDP in 2008 from a high 54.2% of GDP in 2002, the bank said.“And, the non-mineral budget deficit was kept within bounds, until 2009 when the global financial crisis and the collapse in external demand warranted a fiscal response.“While a looser fiscal policy stance was broadly appropriate during the crisis, breaches in MTFS commitments may risk undermining fiscal credibility,” the bank said.Stimulus spending in 2009 far exceeded the limit imposed by the MTFS on expenditures out of accumulated mineral revenues, sending the non mineral budget deficit past its MTFS bounds to 11.4% of GDP, it noted.“Concerns have also been raised about the quality of the stimulus spending as some involved village level projects for which project and financial reporting have historically not been forthcoming.“Moreover, the 2010 budget surprisingly lacks any provision for using the accumulated mineral revenues for debt reduction this year.“As the implementation of the LNG project will make attaining macroeconomic stability more difficult, it has become imperative that authorities exert tighter fiscal discipline in the years ahead.“The 2010 budget still features a ramp-up in development spending that, when combined with sizable private investment for the LNG project, will be expansionary.“Growth is projected to rebound strongly this year, as the construction of the LNG facility begins and the project directly and indirectly stimulates domestic demand.“Estimates suggested that real GDP growth could increase by 0.8 percentage points a year during the construction phase alone and then perhaps by 15%-25% per year during the 30-year life of the project, doubling the country’s GDP in three to five years after the project becomes operational, the bank said.
THE billions of kina stashed away in trust accounts should be integrated into the central Government’s consolidated revenue fund for better control and to help manage PNG’s volatility from external shocks, the World Bank has recommended.The bank said the economic growth would rebound this year because of the high demand from the LNG project as it swings into construction posing dangers for high inflation and deficit. It also raised concerns over the use of trust accounts on projects in villages with little or no accountability.In its review of the East Asia and Pacific economies released yesterday, the WB said PNG should consider reforming the trust accounts system and fully integrate it with the Government budget.It said PNG might consider establishing a non-renewable resource fund that, as a single savings and stabilisation fund, would be fully integrated with the macro framework, budgetary system, and spending priorities and that will seek to maximise the long-run development impact of the country’s resource wealth.“More importantly, the Government needs to strengthen its commitment to its medium-term fiscal strategy (MTFS).“The strategy aims to enhance the country’s macroeconomic stability by insulating the public budget from volatility in mineral revenues.“The Government had prudently adhered to elements of its fiscal strategy years before the formal adoption of the fiscal framework in 2008.“Windfall mineral revenues from the commodity boom years were saved in trust accounts that were built up to 14% of GDP by the end of 2008.”More expensive public external debt was paid down to 13.2% of GDP in 2008 from a high 54.2% of GDP in 2002, the bank said.“And, the non-mineral budget deficit was kept within bounds, until 2009 when the global financial crisis and the collapse in external demand warranted a fiscal response.“While a looser fiscal policy stance was broadly appropriate during the crisis, breaches in MTFS commitments may risk undermining fiscal credibility,” the bank said.Stimulus spending in 2009 far exceeded the limit imposed by the MTFS on expenditures out of accumulated mineral revenues, sending the non mineral budget deficit past its MTFS bounds to 11.4% of GDP, it noted.“Concerns have also been raised about the quality of the stimulus spending as some involved village level projects for which project and financial reporting have historically not been forthcoming.“Moreover, the 2010 budget surprisingly lacks any provision for using the accumulated mineral revenues for debt reduction this year.“As the implementation of the LNG project will make attaining macroeconomic stability more difficult, it has become imperative that authorities exert tighter fiscal discipline in the years ahead.“The 2010 budget still features a ramp-up in development spending that, when combined with sizable private investment for the LNG project, will be expansionary.“Growth is projected to rebound strongly this year, as the construction of the LNG facility begins and the project directly and indirectly stimulates domestic demand.“Estimates suggested that real GDP growth could increase by 0.8 percentage points a year during the construction phase alone and then perhaps by 15%-25% per year during the 30-year life of the project, doubling the country’s GDP in three to five years after the project becomes operational, the bank said.
NBPOL to open refinery in UK this month
PAPUA New Guinea’s largest palm oil producer, New Britain Palm Oil Limited (NBPOL), will open a refinery in Liverpool, UK this month.Business Times last week reported that the K83 million worth and 150,000 tonne-a-year refinery will be opened by NBPOL at an undisclosed date.It is the first for any European country to have a sustainable palm oil refinery, in a development that environmentalists and industry hope will accelerate the move away from the deforestation often associated with the crop, according to Business Times paper.NBPOL owns certified sustainable plantations in Papua New Guinea and was reported that it has signed up United Biscuits, the maker of McVitie’s, and Jordans, the cereal brand, as customers.The group has a fully traceable, dedicated supply chain, eliminating the risk that the sustainable product has been mixed with unsustainable palm oil before it is used in food and personal care products.The opening comes amid renewed criticism of the use of some palm oil connected with deforestation.The paper reported that a recent campaign by Greenpeace against Nestlé led to 100,000 people writing to the head of the Swiss company and more than one million people downloading a viral video.The UK-based business newspaper quoted Alan Chaytor, executive director of NBPOL, saying “the group, which has invested K83 million in the 150,000 tonnes-a-year refinery, was attracting plenty of interest in its product”
Share advisory for OSL investors
OIL Search Ltd (OSL) has advised its shareholder that the price at which shares will be issued under the dividend reinvestment plan (DRP) for the 2009 final dividend is A$5.80 (K14.52) per share.Oil Search company secretary Stephen Gardiner, in a letter to the Port Moresby Stock Exchange (POMSoX) yesterday, said the price for shares under the DRP was calculated under with the DRP Rules and was the arithmetic average of the daily volume weighted average sale prices of all the Oil Search shares sold on Australian Stock Exchange (ASX).Mr Gardiner said this excluding off-market trade during the 10 trading days from and including March 19, 2010 which is 2% less discount.He said as previously announced, the DRP fully underwent for the 2009 final dividend.
Tuesday, April 6, 2010
Mitsui to fund LNG facility
A PRELIMINARY commitment agreement (PCA) signed between InterOil and Mitsui Corp of Japan for developing phase one of the Elk/Antelope LNG project has paved the way for the Japanese company to fund 100% the cost of condense stripping facilities (CSF) subject to final ratification.The deal was signed in Tokyo, Japan last week in the presence of Prime Minister Sir Michael Somare and Petromin chief executive officer Joshua Kalinoe. The CSF includes a liquid separation plant and pipeline in the project area, and earns tolling fees and various other benefits.Phase one of the project includes the extraction of condensate and development of upstream LNG extraction facilities.InterOil is the upstream operator for the Elk/Antelope LNG project and Mitsui Corp is one of the leading Japanese investment and trading companies.Congratulating the milestone agreement, Mr Kalinoe said under the arrangement Mitsui would also fund Petromin’s share of the condensate extraction costs.This means that Petromin and the State will not have to seek separate financing arrangements to fund their share of the equity.Mr Kalinoe said it was one of the best project financing deals for the current partners in the project which include Petromin, InterOil and Pacific LNG.It also means that early revenue for Petromin and the State from the condensate stripping component of Elk/Antelope LNG project where first cargo of condensate is expected by the second half of 2012.Under the arrangements, Mitsui will co-build the extraction facilities and will receive toll fee as well as financing cost from condensate revenue at first production of condensate.
InterOil-Mitsui JV lauded
PRIME Minister Sir Michael Somare has congratulated InterOil and Mitsui Corp for entering into a preliminary commitment agreement (PCA) to develop phase one of the Elk/Antelope LNG project.Sir Michael Somare said: “With these Japanese partnerships that we, as a country, are establishing, I will be happy to eventually leave politics with the knowledge that this Government has enabled PNG to take positive steps towards a secure and prosperous future.”Sir Michael witnessed the signing ceremony in Tokyo of the deals between InterOil and Mitsui last Tuesday.InterOil is the upstream operator for the Elk/Antelope LNG project and Mitsui is one of the leading Japanese investment and trading companies. This follows the HOA (heads of agreement) that was signed in Papua New Guinea last Dec 23, between InterOil and Mitsui, where the PNG Government ensured support to Mitsui.The PCA allow Mitsui to fund 100% of the cost of the condensate stripping facilities (CSF) which include a liquid separation plant and pipeline in the project area.Sir Michael said, under the arrangements, “project financing to be provided by Mitsui will also fund the State’s share of the condensate extraction costs”.The condensate will be sold on a net back basis to the InterOil refinery in Port Moresby at international market and local PNG market prices. The condensate stripping project agreement is the first step in bringing additional revenue and benefits to the people of Papua New Guinea from the InterOil-led Liquid Niugini Gas LNG project.
Petromin, Japex in JV
PAPUA New Guinea’s national oil, gas and minerals company Petromin PNG Holdings Ltd (Petromin) has entered into a long-term strategic partnership arrangement with Japan Petroleum Exploration Co Ltd (Japex).Japex is a publicly-listed company and partly-owned by the Japanese government.It is the exploration and development company with oil and LNG interests in Japan and other parts of the world.A statement released yesterday said the agreement on principles for a long-term strategic partnership was signed in Tokyo last Tuesday in the presence of the Prime Minister Sir Michael Somare by Japex president Osamu Watanabe and Petromin managing director Joshua Kalinoe.Mr Kalinoe said the purpose and intent of the agreement was significant for Petromin because of the value it would bring to the development efforts of the company in both operational and human resource development.He said the agreement allowed Japex and Petromin to work together in assessing the development opportunities in the hydro-carbon business in PNG, both at exploration and development stages.Japex will train Petromin staff in all aspects of the hydro-carbon business, including commercial and technical operations using Japex facilities in Japan and elsewhere.Mr Kalinoe said both Japex and Petromin had agreed to form a relationship that would also facilitate Petromin’s financial obligations in exploration and development, including the Elk/Antelop LNG project in Guld province.As part of the strategic partnership agreement, a number of technical staff from Petromin would be travelling to Japan this month to work with Japex’s staff on LNG project design and planning, including reservoir management and modelling.
Wednesday, March 31, 2010
10% windfall
By PATRICK TALU
MORE than 100,000 contributors of Nambawan Super Limited (NSL) go into the Easter holiday with a timely gift from their fund.They will have credited into their accounts a 10% interest on their savings, their reward from a handsome profit the fund made last year.This was announced in Port Moresby yesterday.Managing director Leon Buskens told reporters in a media conference yesterday: “As I am speaking, staff members are working on crediting members’ accounts and, by next Monday, all accounts should be credited and completed.”The bonanza for NSL contributors continues a super performance by super funds in the country.A month ago, Nasfund announced a 15% interest for its members from its profits last year.Announcing the good news yesterday, NSL chairman Sir Nagora Bogan said the 10% dividend was approved by the board for crediting to 113,546 members after the superfund declared an after-tax profit of K191 million for last year.Sir Nagora said the 10% interest would also include the retirement saving accounts (RSA) while the board had also approved an interim interest rate for members leaving the fund this year. He said the income of K249 million was derived from the fund’s investment, largely attributed to good performances in the interest earnings, property revaluations, international share and exchange rate benefits arising from the drop value in the kina.Sir Nagora told reporters that offset against a headline inflation rate of 5.7%, the declared interest rates represents a real return of 4.3%.He said for the seventh year in a row since the reforms, the fund has delivered double-digit interest and, most importantly, real returns to members.He stressed that determining the annual interest rate was a very serious decision for the board of directors.“The board makes sure proper accounting standards are met.“It also factors in economic forecasts for the next few years to make sure it sets aside sufficient reserves to meet the prudential requirement set by the Bank of Papua New Guinea,” Sir Nagora said.He added that while double-digit interest crediting had been approved for the year, reserves had increased to K74.7 million from the 2008 levels of K66.6 million.”Horim Piamai, a policeman in Mt Hagen who has been contributing for 20 years, told The National 10% interest was good news.“I have K60,000 in my saving and when I retire, that would sustain me in the long run though RSA.”Another contributing member, Dr Oko Pengi, from Wabag General Hospital in Enga province, said the news was good for him.Meanwhile, directors of the board representing public sector unions – Martin Kenehe (PNGTA), Clement Komu (police), Peter Lungo (CS), and Gabriel Panke and Tau Vali (PEA) applauded NSL for declaring a double-digit interest seven years in a row.Mr Buskens also revealed that the fund’s total assets increased to K2.83 billion, an increase of K120 million over the 2008 total of K2.62 billion.
MORE than 100,000 contributors of Nambawan Super Limited (NSL) go into the Easter holiday with a timely gift from their fund.They will have credited into their accounts a 10% interest on their savings, their reward from a handsome profit the fund made last year.This was announced in Port Moresby yesterday.Managing director Leon Buskens told reporters in a media conference yesterday: “As I am speaking, staff members are working on crediting members’ accounts and, by next Monday, all accounts should be credited and completed.”The bonanza for NSL contributors continues a super performance by super funds in the country.A month ago, Nasfund announced a 15% interest for its members from its profits last year.Announcing the good news yesterday, NSL chairman Sir Nagora Bogan said the 10% dividend was approved by the board for crediting to 113,546 members after the superfund declared an after-tax profit of K191 million for last year.Sir Nagora said the 10% interest would also include the retirement saving accounts (RSA) while the board had also approved an interim interest rate for members leaving the fund this year. He said the income of K249 million was derived from the fund’s investment, largely attributed to good performances in the interest earnings, property revaluations, international share and exchange rate benefits arising from the drop value in the kina.Sir Nagora told reporters that offset against a headline inflation rate of 5.7%, the declared interest rates represents a real return of 4.3%.He said for the seventh year in a row since the reforms, the fund has delivered double-digit interest and, most importantly, real returns to members.He stressed that determining the annual interest rate was a very serious decision for the board of directors.“The board makes sure proper accounting standards are met.“It also factors in economic forecasts for the next few years to make sure it sets aside sufficient reserves to meet the prudential requirement set by the Bank of Papua New Guinea,” Sir Nagora said.He added that while double-digit interest crediting had been approved for the year, reserves had increased to K74.7 million from the 2008 levels of K66.6 million.”Horim Piamai, a policeman in Mt Hagen who has been contributing for 20 years, told The National 10% interest was good news.“I have K60,000 in my saving and when I retire, that would sustain me in the long run though RSA.”Another contributing member, Dr Oko Pengi, from Wabag General Hospital in Enga province, said the news was good for him.Meanwhile, directors of the board representing public sector unions – Martin Kenehe (PNGTA), Clement Komu (police), Peter Lungo (CS), and Gabriel Panke and Tau Vali (PEA) applauded NSL for declaring a double-digit interest seven years in a row.Mr Buskens also revealed that the fund’s total assets increased to K2.83 billion, an increase of K120 million over the 2008 total of K2.62 billion.
Bad roads delay work on LNG
Source:
By ANDREW ALPHONSE
EARLY works on the multi-billion-kina PNG liquefied natural gas (LNG) project is running behind schedule, the delay caused in part by the deteriorating state of the Highlands Highway.An official with Esso Highlands (PNG) Ltd, the subsidiary of ExxonMobil, said equipment and machines for early works for Australian company Glough Curtain Joint Venture (CCJV) were still sitting idle at the wharf in Lae waiting for affected sections of the highway to be repaired and freed up before the equipment and machines could be transported to the project site.One of the worst affected parts is at Kalguwi village, near Kagul River, on the border of Western Highlands and Southern Highlands provinces.Yesterday, a policeman attached with the Kaupena-based police highway patrol unit 17 reported that more than 100 trucks and cars were stranded at either side of the highway at Kalguwi.He said that section of the highway had fallen into a state of complete disrepair and while light four-wheel-drive vehicles were being pushed and pulled to negotiate the landslip and the huge crater-like potholes up the slopes, heavy vehicles were unable to cross.Police highway patrol units have been working around the clock to control traffic and ensure locals do not take advantage of the situation to harass commuters.Imbonggu community leader Pius Alopea said the National Government should immediately look into repairing this section of the highway as it was becoming a national disgrace.Mr Alopea said many vehicles had developed mechanical problems on this section of the road while the flow of goods and services into Southern Highlands had been greatly affected.Mr Alopea said with the current wet season in the region, the road condition would only worsen unless the authorities do something.
By ANDREW ALPHONSE
EARLY works on the multi-billion-kina PNG liquefied natural gas (LNG) project is running behind schedule, the delay caused in part by the deteriorating state of the Highlands Highway.An official with Esso Highlands (PNG) Ltd, the subsidiary of ExxonMobil, said equipment and machines for early works for Australian company Glough Curtain Joint Venture (CCJV) were still sitting idle at the wharf in Lae waiting for affected sections of the highway to be repaired and freed up before the equipment and machines could be transported to the project site.One of the worst affected parts is at Kalguwi village, near Kagul River, on the border of Western Highlands and Southern Highlands provinces.Yesterday, a policeman attached with the Kaupena-based police highway patrol unit 17 reported that more than 100 trucks and cars were stranded at either side of the highway at Kalguwi.He said that section of the highway had fallen into a state of complete disrepair and while light four-wheel-drive vehicles were being pushed and pulled to negotiate the landslip and the huge crater-like potholes up the slopes, heavy vehicles were unable to cross.Police highway patrol units have been working around the clock to control traffic and ensure locals do not take advantage of the situation to harass commuters.Imbonggu community leader Pius Alopea said the National Government should immediately look into repairing this section of the highway as it was becoming a national disgrace.Mr Alopea said many vehicles had developed mechanical problems on this section of the road while the flow of goods and services into Southern Highlands had been greatly affected.Mr Alopea said with the current wet season in the region, the road condition would only worsen unless the authorities do something.
KAML posts ’09 profit
KINA Asset Management Ltd (KAML) has reported a net profit after tax of K4.26 million for last year.This is despite the challenges of the past year from managing the ongoing effects of the global financial crisis.KAML’s end of year report also shows its investment portfolio increased by K3.84 million, or 9.38%, from K40.89 million at the end of December 2008 to K44.72 million at the end of December 2009.KAML chairman Sir Rabbie Namaliu described 2009 as a landmark year for the investment management company and a significant turnaround after recording a net loss of K4.14 million in the launch year, 2008 with all the adversities of the global financial crisis.“KAML’s performance figures for 2009 were very positive for our shareholders and they continue to reflect the increased opportunities for investment and business development that now exist within Papua New Guinea,” Sir Rabbie said.During 2009, KAML’s investments increased by K1.51 million exclusive of exchange rate and K5.39 million inclusive, representing returns of 3.67% and 12.59% respectively.Sir Rabbie said KAML was continuing its expansion strategy and looking at increasing its exposure to international markets including the US and Asia.Last year, the performance results of the International Equities, Asia Fund and the global (Ex Australia) Index Fund all met or exceeded their respective benchmarks.With regards to the global economy, Sir Rabbie said there continued to be strong indicators flowing down from the global markets which suggested that an economic recovery was imminent.He said the International Monetary Fund (IMF) recently forecast the global economy would achieve growth of 3.1% this year, and PNG’s gross domestic produce was also anticipated to rise in the coming 12 months.Moving forward, Sir Rabbie said KAML would continue to adopt a proactive, yet measured, investment strategy designed to build upon its current portfolio and maximise growth opportunities in the current economic climate.“The board of KAML will continue to pursue a range of strategic investment opportunities with the aim of maximising long-term benefits for our shareholders,” he said.“Whilst the key financial indicators are promising moving forward, it is important to note that the global economy is still fragile after the worst recession in more than half a Century.“There will no doubt be opportunities for growth and development in the subsequent economic recovery process, however the challenge remains to ensure that KAML is both financially and strategically well placed to take advantage of these opportunities when they arise,” Sir Rabbie said.
New home sales fell in Feb: Report
SYDNEY: New home sales fell last month, raising concerns about the sustainability of the housing recovery, amid the prospect of further interest rate rises.The Housing Industry Association (HIA) new home sales report showed a 5.2% dip in sales to around 7,000 dwellings last month.The fall follows a 9.5% rise to 8,444 new home sales in January.The HIA said the February fall raised fresh concerns regarding the sustainability of a recovery in residential construction and that deterrents to building new homes such as land shortages would push potential buyers towards existing homes.HIA chief economist Harley Dale said residential construction was still relatively strong, reflecting the monetary and fiscal policy stimulus of last year.“This stimulus has been highly successful in driving the first stage new home building recovery but that stimulus will soon start to fade,” Dr Dale said in a statement yesterday.“Land and labour shortages, frustrating planning delays and the inequitable level of taxation and regulation on new housing are all deterrents to households entering the new home market as opposed to existing property.“All these supply-side obstacles require urgent attention or Australia’s chronic housing shortage will worsen and we will, perversely, see more upward pressure on interest rates than would otherwise be the case.Dale said there was an unjustifiably low level of finance being extended to small residential developers and this needed to be addressed. –AAP
Chapman Freeborn to move LNG cargo
By YEHIURA HRIEHWAZI in Brisbane
ONE of the world’s largest air chartering companies, Chapman Freeborn, has entered into partnership with the national flag carrier, Air Niugini, to move construction cargo for the PNG liquefied natural gas (LNG) project.Chapman Freeborn has 32 offices in 22 countries and last year alone, it co-ordinated 5,000 charters, according to a statement on its website.One of the aircraft being offered for use in the project is a large L-100 Hercules aircraft – one similar to the two from South America that were in joint-venture with Nationair in the mid-1980s to move cargo from Nadzab to Moro for the construction of the Kutubu oil fields and oil pipeline to the Kumul Marine Terminal in the Gulf province.The cargo handling facilities are already available at Nadzab and it has anticipated that most of the PNG LNG construction cargo for the Southern Highlands will be airlifted out of Nadzab to Tari, Komo and Moro. The arrangement will provide Air Niugini with access to the international cargo charter market, allowing the airline to offer its clients freighter aircraft from third party operators managed by Chapman Freeborn.Through the new venture, shippers and forwarders will be offered a one-stop shop for project cargo with main deck charter solutions to Port Moresby International Airport and onward connections to smaller airfields and unpaved strips across PNG.Clients will also be able to utilise Air Niugini’s cargo capacity on their current scheduled passenger aircraft which offer the greatest frequency into the country.The aircraft offer to the market included the highly capable L-100 Hercules which will be utilised to service specialised high altitude airstrips, to assist with the logistics relating to the development of a major LNG project and to supplement domestic cargo operations by Air Niugini’s Dash 8 freighter aircraft.The L-100 Hercules is unequalled in its ability to lift up to 20 tonnes of cargo from unprepared and short airstrips.Chapman Freeborn and Air Niugini are also studying a niche regional freighter for some of the smaller loads required in the country.Shahe Ouzounian, Chapman Freeborn’s chief operating officer, said:“We’re delighted that Air Niugini has chosen Chapman Freeborn as their partner in this venture.“I’m confident that with their regional capabilities and unparalleled local knowledge, combined with our global expertise, together we will help to further unlock Papua New Guinea’s potential for shippers and forwarders worldwide.“We are very pleased that this partnership allows the national carrier of Papua New Guinea to be an integral part of the air logistics involved in the LNG project in the country and we are proud of our association with Air Niugini.”Air Niugini will, in turn, benefit from working in partnership with the world’s leading aircraft charter company.Chapman Freeborn has a reputation for innovation, expertise and professionalism built up over 36 years.
ONE of the world’s largest air chartering companies, Chapman Freeborn, has entered into partnership with the national flag carrier, Air Niugini, to move construction cargo for the PNG liquefied natural gas (LNG) project.Chapman Freeborn has 32 offices in 22 countries and last year alone, it co-ordinated 5,000 charters, according to a statement on its website.One of the aircraft being offered for use in the project is a large L-100 Hercules aircraft – one similar to the two from South America that were in joint-venture with Nationair in the mid-1980s to move cargo from Nadzab to Moro for the construction of the Kutubu oil fields and oil pipeline to the Kumul Marine Terminal in the Gulf province.The cargo handling facilities are already available at Nadzab and it has anticipated that most of the PNG LNG construction cargo for the Southern Highlands will be airlifted out of Nadzab to Tari, Komo and Moro. The arrangement will provide Air Niugini with access to the international cargo charter market, allowing the airline to offer its clients freighter aircraft from third party operators managed by Chapman Freeborn.Through the new venture, shippers and forwarders will be offered a one-stop shop for project cargo with main deck charter solutions to Port Moresby International Airport and onward connections to smaller airfields and unpaved strips across PNG.Clients will also be able to utilise Air Niugini’s cargo capacity on their current scheduled passenger aircraft which offer the greatest frequency into the country.The aircraft offer to the market included the highly capable L-100 Hercules which will be utilised to service specialised high altitude airstrips, to assist with the logistics relating to the development of a major LNG project and to supplement domestic cargo operations by Air Niugini’s Dash 8 freighter aircraft.The L-100 Hercules is unequalled in its ability to lift up to 20 tonnes of cargo from unprepared and short airstrips.Chapman Freeborn and Air Niugini are also studying a niche regional freighter for some of the smaller loads required in the country.Shahe Ouzounian, Chapman Freeborn’s chief operating officer, said:“We’re delighted that Air Niugini has chosen Chapman Freeborn as their partner in this venture.“I’m confident that with their regional capabilities and unparalleled local knowledge, combined with our global expertise, together we will help to further unlock Papua New Guinea’s potential for shippers and forwarders worldwide.“We are very pleased that this partnership allows the national carrier of Papua New Guinea to be an integral part of the air logistics involved in the LNG project in the country and we are proud of our association with Air Niugini.”Air Niugini will, in turn, benefit from working in partnership with the world’s leading aircraft charter company.Chapman Freeborn has a reputation for innovation, expertise and professionalism built up over 36 years.
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