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

To: Tomas who wrote (812)	11/4/1998 7:42:00 PM
From: Tomas	Respond to of 2742

Papua New Guinea: 'Break point for gas project' The National, Thursday November 5 By KEVIN PAMBA PORT MORESBY: Chevron has warned that November is the make-or-break month for the PNG-Queensland gas project. The supply and sales agreements for the project must be signed in Australia signed by this month if the 2001 target for the completion of the construction work is to be met, Chevron executive and the gas project director was quoted as saying yesterday. "The completion date for the end of 2001 will slip into 2002 if Comalco Ltd and other launch customers do not sign bankable purchase agreements so financing of the A$3.5 billion project can go ahead," The Australian Financial Review (AFR) newspaper quoted Dr Powell as saying. Dr Powell was speaking at the Australian Pipeline Industries Association's annual conference in Brisbane on Tuesday. Another sticking point Dr Powell raised at the conference is the much debated Petroleum Act now before Parliament which the project proponents hope will be passed this month. "By the end of this month it (Chevron as operator) must receive parliamentary approval from PNG for the project, reach agreement for gas supply with PNG neighbours Exxon and Oil Search and concert memorandums of understanding with five major potential Australian gas customers into 'bankable documents'," The Australian newspaper reported. The AFR quoted Dr Powell as saying that if the bankable deals were not signed "it would put a number of parts of the project at risk" should the completion date be delayed. This would lead to customers deciding to move their projects or seek other suppliers, the AFR said. "Sales and supply agreements need to be reached by the end of the month to allow six to eight months for financing to be put in place by mid-1999, followed by two and half years of construction," the newspaper said. "If the pipeline is delayed it may mean that Comalco would preferentially go to Malaysia than Townsville," Dr Powell was quoted by the newspaper. The Brisbane Courier Mail newspaper said "Comalco has yet to decide whether it will build its (alumina) refinery in Gladstone or in Malaysia." Memorandum of understandings with potential foundation customers have already been signed Stanwell-Dynergy in Townsville and NRG in Gladstone, the Courier Mail said. "We are also working with Queensland Nickel in Townsville and Queensland Alumina in Gladstone," Dr Powell told the Courier Mail. The project hoped to sign bankable gas customer heads of agreement with these five groups (including Comalco) by the end of the month, the Courier Mail said. wr.com.au