Papua New Guinea: Energy Minister Namaliu backs Hides deal with Santos
The National, February 3
PORT MORESBY: Petroleum and Energy Minister Sir Rabbie Namaliu yesterday welcomed the acquisition by Santos Ltd of a 25 per cent stake in the Hides gas field as a strong vote of confidence in the future of the gas industry in PNG as well as in the PNG to Queensland gas project.
Sir Rabbie said Oil Search which sold the stake in a K191 million deal, had briefed him on its decision to sell the equity in Hides and he fully appreciated the reasons for the sale.
"Oil Search will be retaining a 27 per cent stake in Hides, and will maintain its 100 per cent ownership of the Hides Gas to Electricity project," he said.
Sir Rabbie said Santos, a major gas producer in Australia, had given the pipeline project its strongest possible endorsement by its investment in Hides.
"This confirms that another leading Australian resource company has confidence in the pipeline project, and the oil and gas industries in PNG," he said.
wr.com.au
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Furor erupts over decision to sell gas stake to Santos
PostCourier, February 3
Govt will back Hides changes
OIL Search's plans to sell a 25 per cent stake in Hides gas field to Santos Limited is the centre of a political storm, just a day after the deal was announced.
While the Government fully welcomed and endorsed the sale, a strong political lobby group said it was not in the national interest and should not be entertained (see separate story).
In a statement issued yesterday, Prime Minister Bill Skate described the deal as a ''smart business move'' by Oil Search and a vote of confidence by Santos in the PNG economy. Petroleum and Energy Minister Sir Rabbie Namaliu also backed the deal, and said he appreciated the reasons for the sale.
Oil Search announced on Monday it would sell a 25 per cent stake in Hides to Santos for up to $A142 million (K192 million).
Mr Skate said while he was aware of criticism by Southern Highlands Governor Anderson Agiru and local member Alfred Kaiabe, he believed the move by Oil Search would minimise its exposure and reduce the need for overseas borrowings to fund future gas developments. This would have a positive impact on the economy, he said.
''Oil Search is still firmly in control of its investment in this nation and this move could be reasonably expected following the substantial cost of Oil Search's acquisition of British Petroleum's interest in the gas field last year,'' Mr Skate said.
According to Sir Rabbie, principals of Oil Search had briefed him on the decision to sell the Hides equity to Santos.
''Oil Search will be retaining a 27 per cent stake in Hides, and will maintain its 100 per cent ownership of the Hides gas to electricity project,'' he said.
Sir Rabbie said Oil Search would continue to be the largest stake holder in the PNG to Queensland pipeline project, and Santos' acquisition had given the gas pipeline project the strongest possible endorsement.
''Santos is already a major operator in the oil and gas industry in Australia, and its involvement in the pipeline project through its equity in Hides Gas certainly confirms that another leading Australian resource company has confidence in the pipeline project, and the oil gas industries in Papua New Guinea,'' Sir Rabbie said.
''I remain totally confident that the pipeline project the largest and most significant infra structure project in our history will proceed, and these developments only strengthen my confidence.''
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