PNG pipeline project: Key players set to meet in Sydney this week
The Age (Australia), August 19
By JANE COUNSEL, SYDNEY
Key players to talk on PNG pipeline
Talks over the future of the Papua New Guinea-to-Queensland gas pipeline will intensify next week, with several key players set to meet in Sydney with project operator Chevron.
PNG Treasury officials and senior members of the PNG Petroleum and Energy Department are due to hold talks with Chevron in a continuing effort to pin down crucial aspects of the $US3.5 billion ($A5.9 billion) project.
The talks, aimed at finalising fiscal terms, follow on from recent talks between the Chevron-led pipeline consortium and the Australian Government and Queensland gas customers.
These talks have been aimed at turning the letters of intent for the pipeline project with Queensland gas aggregators Energex and Ergon into firm contract positions.
The consortium is also believed to have been lobbying the Federal Government to play a role in facilitating financing of the PNG Government and local landowner involvement.
The project partners have given themselves until the end of this month to have the critical aspects of the finance in place.
"I expect some very positive political announcements to follow very shortly," a source said yesterday.
Meanwhile, PNG resources company Orogen Minerals, another partner in the project, has posted a $US28 million interim net profit, up from $US12.4 million.
The result, for the six months to June, was driven largely by higher oil prices, with Orogen's revenue rising to $US119.2 million from $US56 million.
Orogen chairman Lindsay MacAlister said the second half was expected to be just as strong, meaning the company was well-positioned to participate in significant developments, including the planned Ramu nickel mine and PNG-Queensland pipeline.
In light of these commitments, Orogen has reduced the payout ratio on its half-year dividend to 29 per cent from 48 per cent in the previous corresponding period.
Even so, the 4.2 cents-a-share dividend is still higher than the previous corresponding period's 3.1 cents.
Once all financing issues are resolved for the PNG pipeline, Orogen, half-owned by the PNG Government, aims to hold a 23 per cent stake in the pipeline.
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