Petromin/Kalinoe are GONE = Kumui Petroleum

[petrengr1]

Thanks Palm. That is very helpful information.

[Tree]

It was no light decision OR simple process to unwind Petromin.
O'Neill cannot alone do this and much political capital likely spent by several parties.

**********

Ownership and Legal Structure
Petromin is a company incorporated under the Papua New Guinea Companies Act 1997 (Companies Act) and is 100% owned by the People of Papua New Guinea, as the Beneficial Shareholders.
The People are represented by both the Prime Minister of the day as Trustee Shareholder and the Minister of Treasury of the day as Beneficiary Shareholder. The Trustee Shareholder and the Beneficiary Shareholder do not have any direct or indirect control over the management and affairs of the Company. As with any other Company, powers of the Trustee Shareholder are restricted to the Shareholder powers set out in the Companies Act and the Petromin Constitution.
Furthermore, the Trustee Shareholder is assisted in the exercise of his shareholder powers by three Independent Trust Managers compromising the State Solicitor of PNG, the President of the PNG Law Society and the President of the Certified Practising Accountants (PNG) under the Petromin Trust Deed. The individuals who form the Trust Managers are independently appointed by the respective professional bodies based on the positions they hold.
The Petromin Trust Deed guides the roles and responsibilities of the Trustee Shareholder and Trust Managers of Petromin. It ensures that shareholding in Petromin is always managed in the best interests of the People of PNG. The three independent Trust Managers make independent resolutions in vetting the Board’s investment and management decisions.
The role of the Prime Minister of the day as Trustee Shareholder is not a new corporate structure and has been used in other companies such as Mineral Resources Development Company Limited (MRDC).
The Petromin concept was based on the successful experience of other countries where state-owned companies were created for the benefit of their people such as Petronas in Malaysia. Some of these companies contribute immensely to the national income of their respective countries.

[Palm]

Actually think the Kalinoe and others actions provided just what the NEC was waiting for to kick Petromin to the curb (fun to use that term in this instance). Petromin was put together by Somare and it was never heavily supported. You would have thought that if it had been done correctly that the State's share of PNG LNG would have been housed at Petromin. Not so fast my friend; it went instead to what is now NPCP. Artie Somare and his crew ran that circus. Petromin really never got going and is cash poor and poorly run. Very political animal and people like the former Petronas exec and others on that BOD had done a poor job overseeing it and allowing stuff to go on counter to the best interests of the State. Can't have 2 national resource companies. Petromin has been like the employee you want to get rid of and you just wait for him/her to slip up so you can easily get rid of them. Petromin walked right into it 2 years ago when they welcomed Shell, threatened IOC, snubbed JAPEX and others willing to provide infrastructure design and funding, and sabotaged the SD process. When Oneill got his proof it was easy to kick them to the curb.

Now they can do this right. NPCP has been started, stopped and now re-started as the National O&G company. Confusion for investors and developers is cleared up. No more redundancy of personnel and function and wondering "Wait a minute, 2 national petroleum companies?" Kalinoe and others walked right into it. Easy decision to can them, cancel their charter, keep only those who are good and necessary, and kick the rest to the curb. Just some "aye"s here and "aye"s there and Petromin and its crooked ways will be done. The BOD at NPCP is made up of "non-political" people (don't totally believe that but that's what they said and the CEO Frank Kramer is a top-notch guy who will run things correctly as opposed to Kalinoe), and by falling under IPBC which is a functioning well-funded entity.

Petromin was the weakling and functioned that way. Time to separate the wheat from the chaff.

[Tree]

Actually think the Kalinoe and others actions provided just what the NEC was waiting for to kick Petromin to the curb (fun to use that term in this instance). Petromin was put together by Somare and it was never heavily supported. You would have thought that if it had been done correctly that the State's share of PNG LNG would have been housed at Petromin. Not so fast my friend; it went instead to what is now NPCP. Artie Somare and his crew ran that circus. Petromin really never got going and is cash poor and poorly run. Very political animal and people like the former Petronas exec and others on that BOD had done a poor job overseeing it and allowing stuff to go on counter to the best interests of the State. Can't have 2 national resource companies. Petromin has been like the employee you want to get rid of and you just wait for him/her to slip up so you can easily get rid of them. Petromin walked right into it 2 years ago when they welcomed Shell, threatened IOC, snubbed JAPEX and others willing to provide infrastructure design and funding, and sabotaged the SD process. When Oneill got his proof it was easy to kick them to the curb. Now they can do this right. NPCP has been started, stopped and now re-started as the National O&G company. Confusion for investors and developers is cleared up. No more redundancy of personnel and function and wondering "Wait a minute, 2 national petroleum companies?" Kalinoe and others walked right into it. Easy decision to can them, cancel their charter, keep only those who are good and necessary, and kick the rest to the curb. Just some "aye"s here and "aye"s there and Petromin and its crooked ways will be done. The BOD at NPCP is made up of "non-political" people (don't totally believe that but that's what they said and the CEO Frank Kramer is a top-notch guy who will run things correctly as opposed to Kalinoe), and by falling under IPBC which is a functioning well-funded entity. Petromin was the weakling and functioned that way. Time to separate the wheat from the chaff.

MAN O MAN!!  You better hope your rude comments do not blow our dealio while IOC negotiators grovel for at least 1 non-accretive bid before the 2009 PA expires!!!

ARE YOU A SHORT?????

[admin]

Actually think the Kalinoe and others actions provided just what the NEC was waiting for to kick Petromin to the curb (fun to use that term in this instance). Petromin was put together by Somare and it was never heavily supported. You would have thought that if it had been done correctly that the State's share of PNG LNG would have been housed at Petromin. Not so fast my friend; it went instead to what is now NPCP. Artie Somare and his crew ran that circus. Petromin really never got going and is cash poor and poorly run. Very political animal and people like the former Petronas exec and others on that BOD had done a poor job overseeing it and allowing stuff to go on counter to the best interests of the State. Can't have 2 national resource companies. Petromin has been like the employee you want to get rid of and you just wait for him/her to slip up so you can easily get rid of them. Petromin walked right into it 2 years ago when they welcomed Shell, threatened IOC, snubbed JAPEX and others willing to provide infrastructure design and funding, and sabotaged the SD process. When Oneill got his proof it was easy to kick them to the curb. Now they can do this right. NPCP has been started, stopped and now re-started as the National O&G company. Confusion for investors and developers is cleared up. No more redundancy of personnel and function and wondering "Wait a minute, 2 national petroleum companies?" Kalinoe and others walked right into it. Easy decision to can them, cancel their charter, keep only those who are good and necessary, and kick the rest to the curb. Just some "aye"s here and "aye"s there and Petromin and its crooked ways will be done. The BOD at NPCP is made up of "non-political" people (don't totally believe that but that's what they said and the CEO Frank Kramer is a top-notch guy who will run things correctly as opposed to Kalinoe), and by falling under IPBC which is a functioning well-funded entity. Petromin was the weakling and functioned that way. Time to separate the wheat from the chaff.

MAN O MAN!!  You better hope your rude comments do not blow our dealio while IOC negotiators grovel for at least 1 non-accretive bid before the 2009 PA expires!!!

ARE YOU A SHORT?????

Well, the exposé of this interesting theory (probable but not yet completely proven, hence 'theory' didn't contain any improper use of language, as you might know what happens after. This is also as good a place as any to remind people that whatever partner IOC strikes (or, perhaps more likely, has struck already), they remain at the a considerable mercy of PNG politicians.

[jft310]

STP-Strongly disagree as to PNG politicians and their desire to mess this up(mercy of PNG politicians). They need the revenue. And it sure seems like IOC will have a Super Major in their deal someplace. And historically how has Exxon fared in getting their way on PNG? So we have NO, zero ,nada connection to Senior PNG government officials NOT wanting these projects to succeed. In fact Somare and O'Neil have promoted the IOC project and have helped them along the way. If YOU call that the mercy of the PNG politicians well most others would say bring it on. We want that kind of help. Maybe a Nation Building conversation is in order .
Duma now lined up and Petromin now gone kinda tell the tale . Once the deals cut its a legal document in what a Commonwealth country. Sounds like a short arguement to me that again has no wind at its back!!

[admin]

STP-Strongly disagree as to PNG politicians and their desire to mess this up(mercy of PNG politicians). They need the revenue. And it sure seems like IOC will have a Super Major in their deal someplace. And historically how has Exxon fared in getting their way on PNG? So we have NO, zero ,nada connection to Senior PNG government officials NOT wanting these projects to succeed. In fact Somare and O'Neil have promoted the IOC project and have helped them along the way. If YOU call that the mercy of the PNG politicians well most others would say bring it on. We want that kind of help. Maybe a Nation Building conversation is in order . Duma now lined up and Petromin now gone kinda tell the tale . Once the deals cut its a legal document in what a Commonwealth country. Sounds like a short arguement to me that again has no wind at its back!!

This is a misunderstanding, seems to happen quite a lot these days. I said that IOC is at their mercy. It's their (PNG's) land and even their gas. I didn't say, nor even tried to suggest, they had any desire to mess this up, in fact, I've said the contrary on numerous occasions. They do indeed need the revenue.

But this doesn't alter the fact that IOC is dependent on them, and insulting them from this, or any other platform, however insignificant, apart from violating the SHU terms, doesn't serve any purpose and isn't conducive to establishing good cooperative relations, no matter how many times I get ridiculized for that or how many alterior motives people want to read into this, there simply aren't any. Take me face value or don't take me at all.

And what's more, we just have witnessed a period where IOC suffered from headwinds in this department and that dependency manifested itself with considerable force. Those who fail to learn from history are bound to repeat it.

[Tree]

"Time to separate the wheat from the chaff."

That wheat was planted when O'Neill won the election.

Somare's illness cost PNG an 18 month delay in launching Gulf LNG.  With Petromin and it's staff removed and O'Neill duly elected PM with a supportive legit NEC, the stability required to attract foreign investors is in place.  T

If Somare hadn't taked ill we would be half way built to production.  Now our project is bigger, better, the resource is greater and it's allowed many of to grow our holdings.  Funny how things work out.

[sageo]

So why not get the rigs going while we wait -----seems like a lot of time being wasted

oil, I've been concerned about that and raised the question, myself.  I understand they are progressing with related work but before beginning further actual drilling want to consult and agree with the new partner(s) as well as PRE on the details of how to proceed with further development and exploration drilling, perhaps with additional assets (equipment as well as cash that is expected to be much more plentiful).  I guess we could consider it another component of what Phil meant when he said "we're going to know a lot more over the next 30 to 60 days".  I must admit I'm tired of waiting for all of it, but I think they see it as the most important decisions the Company will make for years to come and are determined to get it right with all the bidders and the government and do it cost effectively.  They have been working on Rig 2 to get it ready for the next well;  but personally, I'm impressed with how comfortable they are with the government support to be holding off temporarily on further drilling.

Getit- Liked your"important decisions for years to come",and agree. However,as Oilmd believes,we can drill and negotiate at the same time.The first task of an exploration company is to "explore"(drilling).We can always put in a provision(in all that lawyering),that if we exceed our expectations in Elk3or any other prospect,that changes can be made.After all,we do have bright folks doing all this"back and forth stuff" .Thanks for everone's input.