Maipakai welcomes Gulf LNG proposal

[Palm]

Like we have been saying; Gulf LNG is being seen as a great project for PNG. Local support is starting to roll in

Maipakai welcomes Gulf LNG proposal

MEMBER for Kikori Open and Minister for Labour and Industrial Relations Mark Maipakai applauded the Government for a 50-50 proposal for the Gulf LNG project.

Minister Maipakai said as the local MP of the project impacted district, the announcement would enhance spin-off benefits for the people in his electorate to participate meaningfully in the project.

He said this would also help the National Government, Provincial Government and landowners to have better bargaining powers on the negotiation table.

“For far too long Gulf Province has been a pipeline carrier province. It is time now we are given better opportunity to develop Kikori District and Gulf Province at large,” he said.

He said learning from the PNG LNG project where he was a member of the state negotiation team; Gulf Province has lost a lot because the Governor never signed the Licensed Based Sharing Agreement (LBSA) and Umbrella Business Sharing Agreement (UBSA).

He said the Governor signed the LBSA in Port Moresby after the Kokopo meeting was concluded but never signed the UBSA.

He said LBSA is essentially important because it outlines what benefits impacted provincial government, landowners and state would receive from the project.

He said it is now a lesson that the Gulf Provincial Government can learn and can create better opportunities for the province in the Gulf LNG project by taking a proactive approach.

“As the MP who is responsible for the two LLG’s that would be impacted by the Gulf LNG project, I thank the Government for its decision on a 50-50% proposal.

“The National Government has also approved a bureaucratic negotiation team to negotiate the 50-50 shareholding proposal. “Likewise, I want Gulf Provincial Government andAdministration to set up a bureaucratic and political team to discuss how best we can benefit from the project.

“The Governor should oversee and allow the Kerema MP and I put a pre-position for our respective districts as to how best we can benefit. He must play an overarching role by binding this two pre-positions together and plan for the provincial position.

“Since Ihu and Baimuru LLGs would be impacted by the project and are in my district, it would only be proper for me to lead the political team on this project.

The pre-positions for the two LLGs should be left to me to take the political leadership without any interference.

“The Governor must concentrate on a provincial position based on what myself and Kerema MP prepare for our respective electorates. The PNG LNG project is now like a baseline study that we can learn and make necessary improvements. I want this project to be a great success. I have buried the past issues I have endlessly argued over with the provincial government on the manner in which they had approached the PNG LNG project,” Minister Maipakai said.

He also called on the developer InterOil to make the local content known early so that landowners can go out and partner with international investors to secure business opportunities in the construction phase.

Minister Maipaka: “We want equal participation and this catering business and security service should come to an end, enough of being tea boys and girls.

“Landowners must be made aware of the local content of the business so that they partner

with investors to bid for major projects.”

http://www.postcourier.com.pg/20121120/business03.htm

[Stavros]

Lots of drum beating by Maipakai to get local contracts with the international players involved in the Project.

Not as Tea Boys and Girls mind you but in technical and construction activities. That's a lot to ask for since not so many locals are trained to do anything of that nature.

As you know, IOC has over 1,000 local employees who have been trained over the years ... so they can step up to the plate and train the Gulf folks; something that XOM et al seemingly didn't do.

Another win-win for IOC taking shape.

[Palm]

So we have his drum, Kavo's drum (promise to buy heavy equipment for roads) and O'Neill's huge kettle drum pounding out the promises of his coalition. Great way for IOC to get all the momentum it needs to get this fast tracked.

[Tree]

So we have his drum, Kavo's drum (promise to buy heavy equipment for roads) and O'Neill's huge kettle drum pounding out the promises of his coalition. Great way for IOC to get all the momentum it needs to get this fast tracked.

Palm-San,  There has not been 1 on island peep of opposition to O'Neill's approval of Gulf LNG.  Not even from Namahdorf.  Off island is a different matter as this partnership is unappreciated by the masses.

Phil and O'Neill are clearly excited by the IOC/PNG super-sized partnership.  IOC gets a supportive Gov't at market rates and PNG sources $.12/M dry gas from the CSP valve at rates now being negotiated to be used to electrify the island and feed all those coming gas-based industries at the Petro Prk.  Why did not PNG have a DMO arrangement with Ping Ling?  Could it be that domestically PNG could not afford to sell $5/M dried gas to people that have no money or jobs??

[Palm]

DMO was not on the radar when Ping Ling was being formulated; back then kina i pockets and condos in Cairns were the main focus. What would PNG-ites ever do with electricity? The masses were screaming for it, but it fell on deaf ears. Wisely in the election O'Neill was elected over Namahdorf. He gets it, especially when Australia, Japan, US China, and others say no more aid if it ends up in pockets. And China's billions are only for projects earmarked and under construction. No more here's the money, hope the roads get built. These first projects will tell the tale because some of that money will have to be advanced to get things going. So first we get the budget which was introduced Tuesday afternoon in PNG to lay out the plan. Once approved I would guess they can start the project planning, present that to China and others, draw some funds and get rolling. But squander it and the spigot goes dry. So the government went to IOC just before the election and started laying out needs, and quickly we are where we are. IOC is seen as a partner; not just a developer.

So assuming the budget gets approved O'Neill has set Nov 30 as a report-back date on negotiations. I'm still not convinced that is deep line in sand but a deadline to be sure not only IOC is negotiating in good faith, but also the department heads. People are seeing this Nov 30 as a dangerous date for IOC. I don't think it's as much a dangerous date for IOC as it is for Mr Duma and other department heads. These guys as a whole have been told to perform or lose your job, and O'Neill was very smart to for these groups to hammer this out. He has some of his most trusted coalition partners on these committees to be sure games are not played. My guess is that if they do not have final things hammered out by Nov 30, they will be very far along. The good thing is that this will set the new standard for getting things done in PNG. O'Neill velly smart man.

[Getitrt2]

My understanding is that PNG wanted some DMO with PNG LNG, but that XOM/OSH were not certain enough of the amount of gas available for the project to be agreeable with that. IOC expects to have plenty of gas available, and the DMO agreement fits well with the phased project IOC and its other partner candidates preferred that now is agreeable to PNG.

[Palm]

Agree with that Getit, but also think that had O'Neill been in charge back then he may have asked for at least an option like he is doing with IOC. Arty Somare and Sir Michael were in a big rush and let XOM push past any serious discussions because there was a race with IOC to get the first project approved. No way in the Pacific Rim of Fire that PNG LNG wasn't going to be first approved. That gaffe won't be repeated.

[Tree]

If only PNG could minimally sell up to 50% of PRL15 gas to XOM in a dry gas deal to fuel their expansion. Sold, of course per contract, 'at arms length' matching what another SM will need to pay to win the 'beauty contest' bid war.
Who does XOM hate more?
RDS or TOT?

[Getitrt2]

Why would any amount above 22.5% go through PNG to Exxon at the same price as that to be paid to IOC and other partners?