PNG: The final green light will be given much sooner than many observers think"
The National, Tuesday April 27
By NIKINTS TIPTIP, PORT MORESBY
Woodside investment 'a vote of confidence'
The K178 million investment by Woodside Petroleum in Oil Search was a vote of confidence in PNG's future, and particularly in the PNG-Queensland gas pipeline project, Petroleum and Energy Minister Sir Rabbie Namaliu said on Friday.
Sir Rabbie said in a statement that the investment in Oil Search by Woodside brought another major petroleum company into PNG oil and gas sectors and the PNG gas project.
"Woodside Petroleum is a leader in the petroleum sector in Australia and its investment in Oil Search sends the strongest possible signal to potential customers of the gas pipeline that the project will succeed, and that it enjoys growing support in the petroleum and gas sector in Australia," he said.
Last week, another major Australian petroleum and gas company, Santos committed itself to the project through its equity in the Hides gas field.
He said since the agreement last week that secured the gas resources needed for the pipeline project, momentum had escalated, and "I am more confident than ever that the final green light for the project will be given much sooner than many observers think".
"By investing in the project, and our resource sector, companies like Woodside are really showing their confidence in PNG and our future," Sir Rabbie said. "We must work hard to continue to justify that confidence and enable our resource sector play its role in delivering benefits for landowners and for the four million people of this country."
Sir Rabbie who returned home after addressing the Australia Petroleum Production Exploration Association (APPEA) conference in Perth, said he was briefed by Oil Search and Woodside on the acquisition before its announcement. He said he was impressed with the facilities at North West Shelf in which Woodside is a major partner and also the operator of the project .
"Apart from bringing a highly respected partner into Oil Search, it enables Oil Search to reduce its debt level, add value and strength and prepare itself for the funding of its share in the PNG gas project," Sir Rabbie said. He said Oil Search was a key participant in PNG's resource exploration and development sector, and the country benefits when companies such as Oil Search acquire an investor of the strength and calibre of Woodside.
Sir Rabbie said he was also briefed in Sydney last week by the principals of AGL on the marketing strategies to promote the PNG gas project in the Queensland and Australian marketplace. "The response already shown in the marketplace could not have been more positive. Our task is to maintain the momentum and confidence which this vital project enjoys today," he said.
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