PNG LNG BassAckward PLD

[Tree]

O'Neill cleaning up Art Somare's mess, while ennerOle is taking care of all Social Mapping and Environmental work prior to PDL granting. Remember, PDL is for landowner/Gov't protection and defines who gets paid what, who is responsible for land reclamation post project.

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LNG land men laud O’Neill
Source:
The National, Thursday 16th Febuary 2012
PRIME Minister Peter O’Neill has been praised for reviving outstanding PNG LNG project landowner issues that have been continuously ignored by respective Governments.
Petroleum Development Licence (PDL)-1 and PDL-7 landowner leaders praised O’Neill for initiating social mapping, land demarcation and incorporated land group (ILG) formation.
Leaders Andy Hamaga, John Kaloma, Ega Yale and Patrick Dabugo said these processes should have been completed before the signing of the umbrella benefits sharing agreement (UBSA) and the licence-based benefits sharing agreement (LBBSA).
They said the previous government’s failure to carry out social mapping, land demarcation and ILG formation resulted in illegitimate landowners signing the UBSA and the LBBSA.
They added that the signatures to the two agreements were a factor to getting access to various grants including the infrastructure development grants from the government.
“When we went through the list provided by the departments of Petroleum and Energy, National Planning and Finance and Treasury, we found out that 80% of the names of IDG project proponents were not of legitimate landowners,” the leaders said.
“The technical team that screens the proposals overlooked the 20% who are the legitimate landowners in the project areas.
“The legitimate landowners do not have connections with the bureaucracy and the politicians in Waigani and we feel that we will miss out on the infrastructure development grants.”
They said business development grants and ministerial commitments had been paid out and many landowners had missed out.
“We want Oil Search and ExxonMobil to be involved in the screening of proposals because they have been present on the ground and they understand the landowners,” they added.

[Palm]

This is more than just a little amazing. The same government that reamed IOC for not having everything in proper order sort of looked the other way during the WHOLE PNG LNG PDL application and approval process. The same DPE headed a good bit of the time by Mr Duma pushed through the approval without having some of the most important processes and documentation in place. Then you think about the whole FID process and banks EX-IM agencies that very likely expected that all of this was in order as they approved financing.

So how does this same country now tell IOC that they can't move forward unless they do things exactly as they "are required" (by what requirements?), including possibly forcing Shell into the project? And people wonder if JKM will be allowed a legitimate shot at the project. Would love to hear that conversation when PNG tries to explain to the 2 largest importers of LNG in the world why their long established, fully integrated, humongous O&G companies don't offer what it takes for IOC's project to be considered as having legitimate proven technology, and end up being a fully integrated project. How many trips have taken place where PNG/Petromin personnel have gone to Japan and Korea to learn about hydrocarbon field development and LNG production methods? Who's the most qualified in this whole "shell game"?

[Palm]

With this having happened maybe we shouldn't be so shocked at the possibility that the back door was open for RDS. It may have still been unlatched from a prior visit. Possibly the fact that O'Neill doesn't like drafty houses will make for a happier IOC house.

[Tree]

"“When we went through the list provided by the departments of Petroleum and Energy, National Planning and Finance and Treasury, we found out that 80% of the names of IDG project proponents were not of legitimate landowners,” the leaders said.
“The technical team that screens the proposals overlooked the 20% who are the legitimate landowners in the project areas."

They didn't even know who was to be paid what! No wonder there are perpetual landowner problem in the PNG LNG Project areas.

"Petroleum and Energy, National Planning and Finance and Treasury" All these departments were derelict in their duties. Duma was PE Minister, some of our other big named Pols were heading the other 3 departments. I wonder if O'Neill was in Treasury at this time.

[Palm]

I think this qualifies under the National Oil and Gas Act, Article 99, Section 13, file 13. Bonk can probably get this a little more precise, but I believe it states, "Even though all previous 98 Articles specifically spell out all requirements and regulations necessary to be granted a "hydrocarbon extraction permit", thereby allowing grantee to extract, process, sell and ship LNG, oil and all by-products thereof, there are times when we may decide it is prudent for US to totally ignore it all and have grantee fulfill little or none of the requirements, but proceed nonetheless. This may be done in instances where we need tax and royalty revenues really really fast to replace expected declining revenues from other sources. No one will have the ability or right to protest said granted projects. It's ours and we can do what we want, when we want, and it needn't make any sense nor be fair. The End."

[Tree]

McDuck - link please?
HoHoHo

[Tusker]

Resource - my friends, the days draw short. Look to the Gulf.

Tusk

[Palm]

Sorry tree; ran it by Weems and he was afraid providing the link would chance sparking an international incident. He also a little embarrassed because he wrote that part of the legislation. But, there was a purpose. He's a pretty smart guy, and will now use it to our advantage. It's known as "the back door swings both ways clause". Not sure what that means but he said it would all be clear "soon".