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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: J. Kerr who wrote (566)	5/20/1998 7:57:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Papua New Guinea: Good news, Petronas/AGL have been selected to build, own and operate the PNG-Queensland gas pipeline. "The project is close to finalisation of a number of conditional sales agreements with customers in both Townsville and Gladstone." Consortium selected for Papua New Guinea-Queensland pipeline. By CLETUS NGAFFKIN PORT MORESBY: Australian Gas Light Company (AGL) and Petronas of Malaysia have been selected as the preferred contractors to build, own and operate the Australian section of the 2500-kilometre PNG-Queensland gas pipeline. Chevron announced yesterday that it had selected a consortium of AGL and Petronas as the preferred tenderer, after a detailed selection process. AGL and Petronas were selected ahead of Nova and Williams, which formed the other consortium. With the announcement of the selection, AGL shares rose 34.5 cents to A$12.05 on the Australian Stock Exchange. The people of Papua New Guinea are well represented in the Gas Project, through MRDC and Orogen Minerals. Other participants in the project are BHP Petroleum (Australia) Pty Ltd, Chevron Asiatic Ltd, Mitsubishi Oil Company Ltd, Mobil Exploration and Producing Australia Pty Ltd and Oil Search Ltd. The PNG Government welcomed the selection of the AGL-Petronas consortium as a significant move as far as the project was concerned. Petroleum and Energy Minister Masket Iangalio said yesterday: "I am very pleased to see the project is moving closer to fruition." "The Government of Papua New Guinea is committed to ensure that there is a timely development of our gas reserves, which will best benefit our people. "The project will not only provide a new energy source for PNG through liquefied petroleum gas (LPG) production but will also create a new export industry through the sale of dry gas to Australia," Mr Iangalio said. The project offers major economic benefits to PNG in terms of capital investment in productive capacity, recurrent expenditure within the country, contribution to gross national product through natural gas exports and value-added gas-based products, employment opportunities for PNG nationals and payments to government and landowners. The project will also provide a range of non-cash benefits to the local people. Most importantly, the PNG gas project and the domestic developments, which it could support offer the opportunity to maintain investment, production, jobs and revenue which would otherwise be eroded in the face of declining oil production over the next 15 years. Under the various development scenarios analysed, the Gas Project could lead to: * Capital investment totalling between K5 billion and 9.K5 billion (in constant 1997 money terms) over the above anticipated oil-related capital investment; * Annual recurring expenditure in the range K300 million to K1.1 billion; * Annual value to outputs in the long term of between K800 million and K2.5 billion; * Maintenance of between 1,000 and 3,300 permanent jobs, the majority of which will be filled by PNG nationals; * Cumulative government revenue of between K4.7 billion and K9.9 billion, compared to around K2.7 billion in the absence of the gas project; and * Cumulative landowner revenue of between K400 million and K700 million, compared to around K200 million kina in the absence of the gas project. The project involves an upstream gas production project and a downstream gas transportation project. Pipeline construction is scheduled to start next year, and the first gas deliveries are expected by mid-2001. The upstream project consists of field development and pipeline facilities required to produce and transport gas from a central collection point in the Kutubu area along the existing Kutubu oil pipeline to a custody transfer point at Kopi. The upstream project also includes facilities for the extraction and transportation of gas liquids. The upstream project will involve minimum gas treatment necessary in the field production areas, with shipment of raw gas in dense phase from the Highlands to Kopi. At Kopi, the LPG will be stripped from the gas stream for subsequent fractionation and export for sale via a floating processing, storage and offloading vessel (FPSO) or concrete gravity structure (CGS) located near the existing Kumul crude terminal. Chevron's deputy managing director and director for gas commercialisation, Moseley Moramoro, said the project was close to finalisation of a number of conditional sales agreements with customers in both Townsville and Gladstone. "The selection of the pipeline contractor was a very competitive process, which saw several major international consortia bidding for the work. "The project is receiving serious consideration from the international gas industry, because its economics and its timing are both very positive, another sign that will be good for Papua New Guinea," Dr Moramoro said. From "The National", May 21 wr.com.au