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Some InterOil stuff you might wanna check

November 25th, 2011 · No Comments

The latest fun and games from “anonymous industry and government sources”

Suddenly, “anonymous industry and government sources” expound official Government policy, basically a rehash of what we’ve seen two months ago (project in breach of official 2009 agreement by not sticking to a big LNG plant at Napa Napa, we’ve dealt with that already several times (see below). At least then it was actually a Minister, with a name (Duma).

What else than a last ditch effort by those trapped in a short position using light holiday trading? Or are we really to believe that government policy comes from “anonymous industry and government sources” or that IOC and partners have gone on the past two months (or even the past year and a half, when the new direction was taken) completely without Government backing? Really, this is just pure nonsense. If you still have doubts though:

Prime Minster Peter O’Neill (better than “anonymous industry and government sources”, especially when these purport to expound official government policy..)

[“The two multi-billion dollar LNG projects – PNG LNG being developed by a consortium led by ExxonMobil and Oil Search Limited and Gulf LNG, being established by InterOil Corporation and its partners – both world class projects.

 These are projects with potential to create revenue in-flows for PNG like never before.

On August 9, I stated in my initial policy statement that every effort will be made by my government to assist these two projects to meet their initial production timelines in 2014.

My position has not changed.

I will ensure there are no political and bureaucratic interference in their progress.

All dealings with regard to these two projects shall be transparent and predictable. The importance of these two projects can neither be overstated nor understated.

To give these projects the prominence they deserve, I will dedicate a senior member of my staff in the coming days as a direct link in my office, whose job it will be to actively liaise directly with the responsible ministry, department and LNG Facilitation Office to ensure this two projects are not hampered in their progress by political and bureaucratic nepotism.

The PNG LNG project needs all the help that my government can give, and we shall do that as a matter of priority, to address all outstanding landowner issues and resolve them so that there are no further delays in progressing this project to production.

Similarly, my government will not tolerate any interference designed to delay progress of the Gulf LNG project. Gulf LNG is nearing a Final Invest Decision by the end of this year and all assistance will be given by my government to fulfil all their requirements to arrive at FID.

I want to see these two projects developed together.”]

From February
Duma lauds LNG pacts

Petroleum and Energy Minister William Duma yesterday applauded the substantial progress being made to fast-track developments of the nation’ second liquefied natural gas (LNG) project.

He said the Somare Government was pleased to note that petroleum explorer, developer and refinery operator InterOil Corporation had locked in reputable partners to advance development of PNG’s second LNG project and a condensate stripping plant.

Mr Duma’s statement follows the signing last Wednesday of both project funding and construction agreement and shareholding agreement by InterOil and its partners, Pacific LNG Operations Ltd and Energy World Corporation (EWC).

The two agreements follow EWC’s announcement in September last year on the formation of a partnership with InterOil and Liquid Niugini Gas Ltd, the joint venture company created by InterOil and Pacific LNG Operations Ltd to develop the LNG project.

Mr Duma said the Somare Government stood ready as a project development partner and beneficiary to approve all enabling legal requirements under the Oil and Gas Act to ensure progress on development of the project was not delayed.

“Wednesday’s signing of the agreement was a powerful message to the foreign investment community and to the government and citizens of PNG that InterOil and its partners were indeed serious long-term investors and developers in PNG,” Mr Duma said.

“On behalf of the Prime Minister Grand Chief Sir Michael Somare and the PNG Government, I express my gratitude to InterOil as a company that has demonstrated in 15 short years that it could build and operate an oil refinery, explore oil and gas and develop its natural gas discoveries at the world class Elk and Antelope reservoirs in the Gulf province into LNG.

“The company’s success in securing reputable international companies to fund and jointly develop its condensates at middle Purari and develop the second LNG processing facility with partners EWC and Pacific LNG Operations Ltd in the Gulf and Inter Oil’s confidence and PNG’s commitment will add value to the Gulf Province and PNG.”

The PNG Government will provide all assistance necessary to make sure InterOil and its project partners, the Gulf Provincial Government and the people to work together in their mutually desired developments and benefit sharing in peace and harmony.
“I commend InterOil for demonstrating that small oil and gas companies can also explore and develop world-class hydrocarbon projects just as capably as any international oil and gas companies where political stability and right conditions exist,” Mr Duma said.

From InterOil’s latest CC

  • The project, with an addition of a “world-class” LNG operator and partner to accelerate the LNG capacity to over 7.6mtpa, has the backing of the PNG government (see slide 26 from the presentation).
  • The government won’t force InterOil into an unfavorable negotiating position with a single company (slide 26).

Does this look like IOC’s project is in danger?

PM to open mining seminar
Source: The National, Friday 25th November 2011

THE PNG Chamber of Mines and Petroleum will be hosting a four-day mining and petroleum seminar starting on Tuesday, to be opened by Prime Minister Peter ONeill at the Gateway Hotel in Port Moresby.
The seminar will come in two parts, with the mining seminar to start on Tuesday and end on Wednesday followed by a petroleum segment on Wednesday and Thursday.
The mining seminar will inform delegates on current activities in the PNG mining industry, featuring project updates, new developments, advanced prospects and on exploration activities.
Highlights would include PNG’s newest mines, Hidden Valley and Ramu, the world’s first deepo- sea mine, Solwara 1 and the world class prospects – Frieda River, Yandera, Wafi and the island gold prospect  at Woodlark in Milne Bay Province.
The petroleum seminar will provide delegates with an update on current activities in the petroleum sector, focusing on PNG LNG project and other LNG developments, major new gas discoveries and other exploration.
Potential new gas developments will include InterOil, liquid stripping/LNG project in the Gulf province, Pandora offshore project, Stanley gas recycling/liquid stripping and gas aggregation in the Western province.
O’Neill will give the opening address on the importance of the resource sectors to the growth of the nation.
Mining Minister Byron Chan will talk about PNG mining success story and potential for new projects.
Other leaders and experts from the mining and petroleum industry will also talk about current and future developments in the sector.

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Tags: IOC