Kerema Town to be Extended

The township of the Gulf Province – Kerema, will be extended at a cost of 1.2 billion kina.

Governor Havila Kavo said the Provincial Administration has engaged a contractor named Melamaju Limited to work on the master plan.

The company is scheduled to complete the plan in 7 to 12 months’ time.

Mr. Kavo said payment will be made in six phases. The first payment of six hundred thousand kina was made yesterday in Port Moresby.

Kerema town has been labelled as one of the country’s failed townships.

Infrastructure and vital services such as banks have all fallen apart due to criminal activities and lack of public servants on the ground.

The governor said all this has contributed to the low economic activity in the province, despite its enormous contributions of the oil and gas resources to the growth of the country’s economy every year.

It was also recently announced that the province will play host to the country’s 2nd LNG project, and supply one of the largest amounts of liquefied natural gas to the world.

Mr. Kavo said it is fitting to extend and improve the township to encourage the domestic and international investor confidence in the province.

He said the master plan is the foundation the province will use to step on to achieve its 2020 vision of making the Gulf Province the economic hub of the Highlands and Southern regions.

The Kerema town extension master plan will encompass the provincial headquarters complex, Kerema High School, market, airport, public service housing, banking institutions such as BSP and PNG microfinance, and provincial police headquarters amongst others.

XOM is planning on 4.6+-Ts of E/A gas to back-stop expansion and that gas will max out the pipe.

There will be enough gas beyons XOM SPA to support another LNG project, just needs a few more wells to verify.

The $3 billion question is "Where and by whom will the remaining PRL15 and Tri be processed?

$3 billion will be a "down payment" amount by the time they get done with everything over the years. Hohoho. Every time I read Dr Mike's words from the CC I get a little excited. In another thread will2b said at some point the megas will give their final pitches to IOC. Me thinks per Dr Mikes words that those were going on at the time of the CC; "in Singapore". Gotta love Dr Mike's last words here:

"So where are we today? Well, we have offers. We have offers from a number of mega majors, and that believes -- that leads me to believe that we can do this deal by the end of the year. That's the first time that I've gone out and said, and given a timeline as to when we'll do this deal.

Now, a major part of this whole process is bringing and working with the Papua New Guinean government. They are integral to the success. We have a degree of responsibility to Papua New Guinea, and that's been part of the process. And I myself, I spend in excess of 50% of my time in Papua New Guinea, working with the stakeholders, taking them through where we are and making sure that those stakeholders are really comfortable with what we're doing.

So for instance, I've spent time with Prime Minister O'Neill, the Minister of Energy Mr. Duma, Governor Kavo, Minister Micah and several other very important stakeholders in the country. We're part of a team here, and you should probably gather the team ethic is quite important to me, and we're part of a team with PNG. So the Papua New Guinean government know where we are. They know how close we are, and they've been extremely supportive. Extremely supportive. I've been very, very pleased about the degree of support I've got from all levels, and that's from the political levels right through to the bureaucracy to the local community sitting within Governor Kavo's domain.

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