JAPEX agreement shown on EMTV

[Palm]

Tree is searching for a thread from January (he thinks), but me thinks this is a part of this 2011 JAPEX/METI paper that stated this as a Project Summary:
"The main objective is to perform fuel conversion from diesel fuel to domestically produced
natural gas produced at either the Exxon Mobil LNG project or the Elk/Antelope gas field being
promoted by InterOil, and improve thermal efficiency, to obtain energy savings, resource
conservation, and reduction in CO2 emissions. The benefits for Japan include the point that a final
agreement will be obtained toward placing bids for acquisition of rights to the Elk/Antelope gas
field, etc., now being implemented by Petromin PNG Holdings Limited, the state-owned
petroleum and mining company with 20.5% back-in rights to both the upstream and midstream
sectors of the Elk/Antelope gas field, and building a long-term strategic partnership withPetromin,
as well as expectation of acquisition of carbon credits.
If the new hydroelectric power station construction plan by PNG Power Limited (PPL), etc., does
not proceed as planned, a proposal for increased power supplies through thermal power generation,
which can come on-line in a shorter period of time than hydroelectric, could well become a study
topic in the future."

This agreement just signed last week was a "technical agreement"; this fits that exactly:
http://www.meti.go.jp/meti_lib/report/20...001610.pdf

[Tree]

http://shareholdersunite.com/mybb/showthread.php?tid=670&pid=19628#pid19628

Boy how time flies when their is a constitutional crisis an election and a $100 mill bribe tendered.

[Palm]

Hohohoho. Mr Market likey this idea; suddenly green!

[Tree]

http://shareholdersunite.com/mybb/showthread.php?tid=670&pid=19628#pid19628 Boy how time flies when there is a constitutional crisis an election and a $100 mill bribe tendered a DPE Minister to reign in and a bit of Petromin housekeeping needed .

[Palm]

Page 1-19:

"Liquid Niugini Gas Project:

"It should be noted that a principal objective of this study is obtaining an advantage with respect to the negotiations to acquire an interest in this project, as well as the related upstream

interests, held by the national petroleum and minerals company Petromin, which has the right of participation after development begins."

Appendix 4:

"2-1. Project profile (scale and contents)

For tight electricity supply, there are frequent power outages in Independent State of Papua New Guinea (currently in Port Moresby, hydroelectric 62MW are also supplied, and total power generation with thermal power is 127MW). Therefore, current power supply of thermal power of 65MW will be increased to about 100MW. Moreover, fuel switch from diesel oil to natural gas of Elk / Antelope fields as indigenous fuel resources is planned to improve thermal efficiency and transmission efficiency, energy conservation, resource saving and to reduce CO2 emissions. For the Japanese side, the activities are evaluated as one of evaluation points on bidding for gas development, which is conducted by a state-owned oil mining company, Petromin PNG Holdings Limited who has rights on upper/middle stream of Elk/Antelope gas fields. And it also effect to establish long-term strategic partnership with the company and obtain carbon credits.

2-2. How was the necessity of the project confirmed?

Is the project consistent with the higher program/policy?

■ YES: Please describe the higher program/policy.

（In seven major items in ”National Strategic Plan 2010-2050 ", " 6. Climate change and environmental sustainability " stipulated to reduce CO2

emissions by power generation efficiency improvement. And, increasing power supply is also described in the National Strategic Plan.）"

[ArtM72]

This makes me feel quite a bit better:

"If the new hydroelectric power station construction plan by PNG Power Limited (PPL), etc., does not proceed as planned, a proposal for increased power supplies through thermal power generation, which can come on-line in a shorter period of time than hydroelectric, could well become a study topic in the future."

Didn't make sense to me for PNG to build a major hydro power plant with all the cheap gas it has available. In addition to power plants at LNG facilities they should also be planning to build a gas distribution network to villages for distributed (onsite) electrical generation with heat recovery for food processing and refrigeration (aka "CCHP").

[Palm]

If this is what we believe it to be, it's important to understand what it took for Japan/JAPEX to sign this agreement.  Back in 2010 they pledged to Petromin/PNG that JAPEX would work with Petromin, train their people and fund their participation in EA.  They then brought people from Petromin to train them and proceeded to move ahead with the study linked above.  As they state, "It should be noted that a principal objective of this study is obtaining an advantage with respect to the negotiations to acquire an interest in this project, as well as the related upstream interests, held by the national petroleum and minerals company Petromin, which has the right of participation after development begins..."

JAPEX provided this paper in March 2011, about one year after they signed the agreements, and at that same time Petromin suddenly brings in Shell and spits in JAPEX's face it appears.  The Japanese PM invited O'Neill to Japan and they met about several things, but this signing was done.  IMHO a clear message was probably sent to O'Neill/PNG.  "We provide you with boatloads of aid, invest in your country, commit to work with Petromin and help you plan to bring cheap, clean electricity to Port Moresby, and you turned your back.  If you want this to happen, we will again sign the agreement, but this HAS to happen this time.  What aid does Shell or Exxon or other SMs bring to your country.  We need LNG and you need our help for financing LNG and other projects, and building your infrastructure.  We sign this with Petromin again with the understanding that if Petromin is merged with NPCP, this agreement carries over to NPCP.  Now let's sign the papers."

Asians take agreements seriously and for O'Neill to do this I would expect we will see things start happening very quickly as far as announcements.

[Movieguy]

Excellent, in-depth and succinct analysis, Palm. Thanks.

[trans]

This is a very astute move. I am convinced that the SM's influence is on the wane. Countries and their governments are becoming more focused on their future enemy needs as reasonably priced as possible. As a result, they're cutting out, or phasing out the SM influences. fwiw

[sltibbs]

This is a very astute move. I am convinced that the SM's influence is on the wane. Countries and their governments are becoming more focused on their future enemy needs as reasonably priced as possible. As a result, they're cutting out, or phasing out the SM influences. fwiw

Trans,

Help me understand "future enemy needs". Hehe.

Also, I agree.

Best,

Sam