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

To: Tomas who wrote (785)	10/22/1998 7:59:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Lundin's Pandora field has 18-19% of ALL gas in Papua New Guinea Lundin Oil owns almost 50% of the field = 9-10% of all PNG gas 'Gas law key to viable Development' By KEVIN PAMBA The National, October 23 PORT MORESBY: If PNG gas is to be developed and marketed viably the government must put in place a receptive legislation that is beneficial to all parties, a visiting Chevron oil and gas expert said yesterday. Dr Nuhum Schnidermann who is based at Chevron's headquarters in San Ramon, California, said PNG gas reserves were insignificant on a global and regional scale. He said because its nine trillion cubic feet of reserves are insignificant, PNG faced a challenge in developing them and penetrating the limited markets in the east Asian region where other major players in the region and elsewhere were vying to sell their product. Dr Schnidermann told reporters that unlike oil, gas is a relatively new resource and there aren't enough established markets on the global and regional scale. Thus, the cost of developing gas reserves was greater. He said PNG should put in place legislation that can make the development of gas viable and beneficial to itself, developers and the landowners. Dr Schnidermann said the country had two options for developing its reserves: * Compete with the rest of the world for the east Asian (Japan, Korea and China) market with a liquefied natural gas (LNG) option; or * Develop a niche market in North Queensland by piping gas there. Dr Schnidderman said he personally felt that given the current global conditions, PNG's best option was the development of a niche market in North Queensland. He said the LNG option was expensive up front as at least US$1 billion (K2.2 billion) would be spent for initial infrastructure work to liquefy the gas before it is exported on specialised LNG tankers. He said PNG gas would be sourced from wells located in rugged terrain and would therefore be costlier to extract. Dr Schnidermann said his experience around the world showed that legislators in host economies normally did not know the facts about the economies of gas and drew up legislation that in the end thwarted any opportunity to develop the resource. Chevron Niugini officials at Dr Schnidermann's media conference said the company was is committed to PNG and had already spent US$40 million in the PNG to Queensland gas project along with its partners. They said they hoped the Government would introduce the gas legislation in next month's Parliament sitting. "The important thing the Government and people of PNG should realise that the present oil reserves were declining and development of gas will pick up from where oil leaves in terms of benefits to developers, the Government and the landowners," the officials said. The officials said PNG should seize the window of opportunity currently available for gas development. wr.com.au