Australian State/PNG Officials Meet To Keep Alive Gasline Project
Asia Pulse, June 8
PORT MORESBY, June 8 Asia Pulse - Senior Papua New Guinea ministers were meeting with Queensland Premier Peter Beattie today to keep alive the projected $A8.59 billion ($US4.45 billion) PNG to Queensland gasline project.
The hurriedly-arranged meeting was organised in response to growing competition from a rival consortium to supply gas fuel to Queensland's power utilities and mine processing industries from the Timor Sea.
Before his departure from Port Moresby last night, specially-appointed envoy Moi Avei said PNG stood to lose billions of kina unless his government acted decisively now to sew up guaranteed semi-government and industry contracts for the supply of PNG gas.
Avei and newly-appointed Petroleum and Energy Minister Roy Yaki said they would seek assurances from Beattie and Queensland Development Minister Tom Barton about their support for the project, in light of competition from the Timor Sea consortium.
"One of the most important projects for the economic future of this country is the PNG to Queensland gas pipeline," Avei said at Port Moresby's Jackson's International Airport.
"And it is very clear that unless the (PNG) government moves decisively now, we could lose the project."
Yaki said: "The government is very concerned about the delay in the signing of the gas sales contracts, and other related issues."
Avei's involvement in the project represents a heightened government priority for the scheme. As Bougainville affairs minister, he has displayed great mediation and negotiation skills in recently ending three years of wrangling over a permanent peace deal for the nine-year secessionist war on Bougainville island.
Prime Minister Sir Mekere Morauta this week appointed himself chairman of the government's gas pipeline committee with Avei as his special envoy.
The local Post-Courier newspaper today quoted Barton's spokesman, Michael O'Meara, as saying: "We are supportive of the project and our position has not changed. We welcome any gas into the state, whether it is from PNG or Timor or anywhere else."
The PNG-Queensland gas project is a consortium headed by Exxon-Mobil and includes Oil Search, Chevron Niugini and the PNG government's Mineral Resources Development Corporation (MRDC).
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PNG's Oil Search Positive On Outlook For Production
Asia Pulse, June 8
BRISBANE, June 8 Asia Pulse - Papua New Guinea oil and gas group Oil Search Ltd (ASX:OSH) expressed optimism today about the outlook for the company over the next two years.
Chairman Trevor Kennedy said based on the company's large interest in the Moran oil field in PNG, production will increase in 2002 by more than 20 per cent.
"We will see our revenues increase from higher production and the unwinding of our 1999 oil hedge position," he told shareholders at today's annual meeting.
However, he added the company's future was very much tied to exploration success and the development of its huge gas reserves through the $A6.5 billion ($US3.37 billion) PNG to Queensland gas pipeline.
"There is no company more committed to successful development of the gas project," he said.
"We will continue to devote all required resources to this project to give it the best possible chance of success ... it is a company maker for Oil Search."
The project has been bogged down in negotiations with potential customers for more than six months, preventing any meaningful progress on development of the pipeline.
The project is now also facing intense competition from potential gas supplies from the Timor Sea.
Mr Kennedy said Oil Search, and other project backers, would continue intense marketing in what is a "bare-knuckle fight" with competitors.
"We remain confident that we are the best solution and we have enough good cards to win the game," he said.
He added progress towards commercialising the project had been frustratingly slow but marketing efforts had been rejuvenated in April, with ExxonMobil taking over project leadership from Chevron.
ExxonMobil is the largest stakeholder in the project with an interest of about 30 per cent.
Oil Search has an interest of about 26 per cent with various other groups including orogen Minerals Ltd and Santos Ltd holding minority stakes.
"Intense marketing activities are now taking place with all customers in Queensland," Mr Kennedy said.
"We face stiff competition from Timor Sea suppliers... this has been a wake-up call for some parties who thought competition was not really there." |
