IPBC disbanded and means PM and former PMs rule

[Getitrt2]

[quote='Tree' pid='20367' dateline='1365510777']

..."but doesn't it also quite possibly mean we wait until the legislature creates the new entity before PNG is in a position to "sign off" on the deal? 

No.  Petromin is still functioning entity and will be until Septmber.  Recently signed JAPEX MOU is with Petromin.  Petromin can enter into Gulf LNG and then be reorganized into Kumul Petroleum as the legislation allows, and that is what will happen.  Petromin has been slated for dismantling for many months and this just didn't happen in the last 2 weeks.

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I guess I was considering the comment by "Insiderr" which said the bidder required this restructuring as part of the deal. We obviously don't know if Inciderr is legitimate or not, but taking the post at face value, one could wonder...if it was important enough to the bidder that Petrominbe be eliminated (and they apparently acquired that concession from PNG), are they now going to sign the deal with Petromin...or be cautious and wait to sign it with the entity that they demanded be created?

I don't believe Petromin or Kumul will be exercising the option for PNG's 22.5% of PRL 15 until there is a FID and an approved PDL, anyway.  With assurances and initial actions on the reorganizations in place, the new partners I believe will be signing the partnership/sell down/farm-in agreements with IOC, Pacific LNG, etc., and the new partnership on E/A signing a Gas Agreement with the government and/or moving ahead toward FID for the Gulf LNG project, with agreements with Kumul, etc. on the 22.5% coming later.  Thoughts?

[hudsojo]

“I’m also certain they will be welcomed by companies we are partners with in the development of our mining, oil and gas resources.”

O’Neill said all staff of Petromin and IPBC would be redeployed to the new entities, and would not suffer any loss of entitlements.

Anyone troubled by this statement?

hudsojo

[Palm]

“I’m also certain they will be welcomed by companies we are partners with in the development of our mining, oil and gas resources.”

O’Neill said all staff of Petromin and IPBC would be redeployed to the new entities, and would not suffer any loss of entitlements.

Anyone troubled by this statement?

hudsojo

Not at all because staff are paid employees, not the BOD. Petromin and IPBC retained staff will be mostly technical people. The decision makers will be in Kumul Trust which will be managed by "independent and highly professional managers", and former prime ministers will hold voting shares with O'Neill having veto power. Then they will all be accountable to NEC. DPE will be changed so that it has less decision-making ability.

The rats have been sniffed out and the SOEs going forward will be under much more scrutiny to be more accountable. Will still be some bumps but they are getting the right structure in place.

[petrengr1]

“I’m also certain they will be welcomed by companies we are partners with in the development of our mining, oil and gas resources.”

O’Neill said all staff of Petromin and IPBC would be redeployed to the new entities, and would not suffer any loss of entitlements.

Anyone troubled by this statement?

hudsojo

Not at all because staff are paid employees, not the BOD. Petromin and IPBC retained staff will be mostly technical people. The decision makers will be in Kumul Trust which will be managed by "independent and highly professional managers", and former prime ministers will hold voting shares with O'Neill having veto power. Then they will all be accountable to NEC. DPE will be changed so that it has less decision-making ability.

The rats have been sniffed out and the SOEs going forward will be under much more scrutiny to be more accountable. Will still be some bumps but they are getting the right structure in place.

Palm- "DPE will be changed so that it has less decision-making ability."

I certainly hope you are right about this but, as you know, the Oil & Gas Law gives the Minister of Petroleum a very strong hand in controlling what goes in the Oil and Gas Industry. It looks like reducing his authority would require a change of the Law.

[Palm]

DPE is being changed into a statutory entity which is common when setting up SOEs the way png is now doing it. It will obviously have power, but not "in the dark" as before. Instead of working with Petromin-type entity which lacked accountability DPE will have to work with Kumul Trust management. No more Zebras imported through the back door. The O&G Act is being reviewed as part of his reorganization, but that's yet to come.