"We don't even know who's managing our interests.."

[Tree]

"We don't know whose managing our interests in Bougainville and, of course, some of the other assets that we have."

Good Grief.  PNG doesn't even know which GCIRR's are ripping them off......er.....managing National assets I mean.

http://www.radioaustralia.net.au/pacific...es/1113036

[Palm]

A partial transcript of this:

"Papua New Guinea’s government plans to create state resource companies

ABC Radio Australia

Papua New Guinea’s government has announced a major decision to restructure and transfer its interests in all oil, gas and mining resources into two holding companies.

Prime Minister Peter O’Neill says the government owned Petromin Holdings and the assets held by the Independent Public Business Corporation have become too bureaucratic.

He says he wants them to operate like private businesses.

Presenter: Firmin Nanol

Speaker: PNG Prime Minister Peter O’Neill

NANOL: Prime Minister O’Neill says government shares, interests and assets in relation to, oil, gas and mining will be restructured and transferred into two companies to be known as Kumul Holdings.

He says all oil, gas and petroleum interests will be managed by a company called Kumul Petroleum Holdings.

Mr O’Neill says all the assets and interests now under Petromin Holdings will be restructured and transferred to Kumul Petroleum Holdings.

This also includes its shares and interests in the PNG LNG gas project and future oil and petroleum projects that it wishes to participate in with other major companies.

O’NEILL: The sectors that hold petroleum and oil interests and state shares which are held by various companies and I’ll give you an example. We’ve got oil owned by Petromin, we’ve got LNG project now that is going owned by IPBC and, of course, the oil sector owned by IPBC General Business Trust, and, of course, the LNG project, owned by another IPBC entity. So this interest in the same sector, owned by three or four different companies. We are spreading our resources to thinly. As a result, we’re not taking advantage of those assets and we are not developing a skill base and management experience for our citizens. So that is why it’s important that now we create one holding company which will hold all the oil and gas assets.

NANOL: Prime Minister Peter O’Neill says the restructure is part of the government’s efforts to ensure state owned entities perform and deliver maximum returns.

O’NEILL: Likewise, we are creating a mining company which will hold all the mining assets in the country.

I’ll give you another example about that is that we have a, you look at Ok Tedi, which is now been managed by Treasury, we’ve got Bougainville. We don’t know whose managing our interests in Bougainville and, of course, some of the other assets that we have.

So what we are trying to do is streamline these assets into one company so it becomes very transparent and it’s accountable to the people.

We want a simply structure that our people understand. People will know that all the oil and gas assets are owned by these companies, they’re managing it on behalf of our people.

Similarly, mining assets the same and all the other smaller SOE’s are managed through a Kumul Holding company.

NANOL: He says similarly government interests in any mining companies will be transferred under the restructure to a Kumul Mining Holdings.

Prime Minister Peter O’Neill says this includes shares in the Ok Tedi Mine and Bougainville Copper Limited or BCL, which owns the now closed Panguna Copper Mine in the Autonomous Bougainville region.

Mr O’Neill says the PNG government will take over the ownership of Ok Tedi Mine by January 2014.

O’NEILL: What we have said to our partners in Ok Tedi is very clear. The arrangement was for ten years. Now that has come to its conclusion.

Upon its review, we’re saying that real ownership as it was intended. BHP gave that as a gift to the people of Papua New Guinea and Western Province. And I think that it’s in the best interest of all Papua New Guineans, that we are allowed to taken over the ownership. So the management will continue to manage. We’ve already had discussions with them. But the ownership must go to where it was intended and that was that it was a gift to the people of Papua New Guinea.

NANOL: He says a legislation to legalise the proposed restructure will be tabled in parliament before the September session this year.

O’NEILL: These particular companies will be now legislated, that means it will go through an organic law, so that no government can just come in and just at their own pleasure. So we’ve got now a team working through the attorney-general’s office, together with the Minister for State Investments and the Treasury to develop this structure for us. So we are getting proper legal advice and proper financial advice to put this structure together.

NANOL: Under the restructure, a sitting Prime Minister will hold all the shares as a trustee while former living Prime Ministers holding ordinary shares in trust.

The Chief Executive of one of the companies to be restructured Petromin Holdings Joshua Kalinoe has resigned.

Petromin Holdings which will now cease to exist owns PNG’s Tolukuma Gold Mines"

http://ramumine.wordpress.com/2013/04/08...companies/

[Palm]

Excellent article here on restructuring. Note what he says about Petromin and the "oil majors"; makes you wonder what he's implying and what that means going forward.

Petromin assets split up

Source: The National, Monday, April 8, 2013

By MALUM NALU

Petromin PNG Holdings Ltd, and the Independent Public Business Corporation (IPBC) will be wound up and their assets and interest transferred to new Kumul entities to be set up, Prime Minister Peter O’Neill announced last Friday.

“All mining assets and interests for the state will be transferred to a new entity known as Kumul Mining Holding Ltd (KMHL),” he said.

“This includes the state’s interests in Bougainville Copper Ltd (BCL), Ok Tedi Mining Ltd (OTML), and the state’s interest in Ramu Nickel project, currently held by Mineral Resources Development Corporation (MRDC).

“Also to be transferred to KMHL are the State’s interests in Tolukuma Mines, which are currently held by Petromin.

“All petroleum asset and interests owned by the State will be transferred to an entity known as Kumul Petroleum Holding Ltd (KPHL).

“This include the state’s interest (16.575%) in the PNG LNG project currently held by Kroton, a subsidiary of IPBC; 0.2% interest in the PNG LNG project held through a Petromin subsidiary called Kumul LNG Ltd, the state’s interest in Eda Oil currently held by Petromin, and exploration licences and other assets/interests held by Petromin.

“The IPBC will be wound up and all the state owned enterprises will be transferred to a new entity called Kumul Corporation Holding Ltd.”

Restructure of all the state’s investment in petroleum and mining assets, and the state-owned enterprises (SOEs) in the country, follows a decision by the national executive council (NEC) last fortnight to restructure and consolidate investment by the state in petroleum and mining ventures, and all the SOEs.

O’Neill said the restructure was a major decision by government to provide more transparency and accountability, and more focus in the way the state’s investment in mining and petroleum assets, and SOEs, were managed.

He said the restructure and consolidation of these state-owned assets were necessary to remove inefficiencies, and duplication and overlapping of participation.

“Through this restructure we are creating a commercial framework that is cohesive and focused.

“It will result in efficiency that will maximise benefits that will flow to the State.”

O’Neill said Petromin was a good example of what was tested globally by oil and gas majors, found wanting, and discarded.

“Oil Search shed mineral assets in Porgera gold mine to concentrate on oil and, and look at where it is now,” he said.

“Petromin bought into Tolukuma Gold mine in 2008, but continues to make a loss from this venture.

“Its total losses (in sales) stood at K45 million as at Dec 2012.

“The state’s position is not made any better with duplication and overlapping of participation in the PNG LNG project, with Kroton holding 16.57% in the project, while Petromin holds 0.2%, both for the state.

“This is not only confusing, but it also creates an environment for Kroton and Petromin to compete for nomination which is undesirable.”

http://malumnalu.blogspot.com/2013/04/pe...it-up.html

Will be interesting to see whether the BOD from NPCP will be BOD for Kumul Petroleum.

[Tree]

Those putting the honey in the pot and those pulling the honey out don't like the changes to Petromin.
That's no surprise.

[bertl05]

Expect further turmoil. Its an enviroment where nodody knows who is on first and how the ownership of assets in new entities will ultimately be structured. No SM will sign off until everything is settled.

[Tree]

Key to problem solving is problem identification.
The Petromin problem has been front and center since April 2011.
Solution is further along than we realize. JAPEX signed off as evidenced with the on again JAPEX/Petromin MOU.
Any turmoil is emotional response, not substantive any longer.

[Palm]

Turmoil is what existed in PNG in last years of Somare regime. What you now are seeing is fixing up known weakneses in the system and agreed to when the coalition was formed. They have a very clear path they are going down and it has been documented and is being executed. Reorganization always causes some anxiety, but they are going about it in a very orderly manner and with guidance and oversight by ADB and others, including the World Bank. The EITI initiative has been wanted by World Bank, Australia and others to get transparency in place especially with resource projects. The only ones seeing it as "turmoil" are those who don't want the change because their pockets were being stuffed "outside the system". When pressed on issues the administration has had firm and clear answers. Some of this will take a little more time, but the entities are still in place, just with new oversight until things can be finished. NEC has approved this overwhelmingly.

[Tree]

Turmoil is what existed in PNG in last years of Somare regime. What you now are seeing is fixing up known weakneses in the system and agreed to when the coalition was formed. They have a very clear path they are going down and it has been documented and is being executed. Reorganization always causes some anxiety, but they are going about it in a very orderly manner and with guidance and oversight by ADB and others, including the World Bank. The EITI initiative has been wanted by World Bank, Australia and others to get transparency in place especially with resource projects. The only ones seeing it as "turmoil" are those who don't want the change because their pockets were being stuffed "outside the system". When pressed on issues the administration has had firm and clear answers. Some of this will take a little more time, but the entities are still in place, just with new oversight until things can be finished. NEC has approved this overwhelmingly.

No paucity of of accuracy in what HairyPalm states.

Me thinks Palm has been paying attention again.  That is good for all of us.

[Palm]

Lots of reading and listening/watching. People would do well to read up on the Alotau Accord which was what the coalition was formed upon. The things contained in it are what has been and is being acted upon. That's why things are moving as swiftly as they are. Very orderly and with wide support. This Accord draws heavily upon the 2030 National Plan and 2050 Vision; makes sense. Work the plan.

Also there are long but very valuable interviews with people inside and outside of PNG which discuss what is going on in PNG, and what needs to be done. These can be found here:
http://www.emtv.com.pg/business/businesspng

Pretty impressive lineup of people and you can watch and listen to exactly what they have to say; not some edited and/or biased written story in The National, PC or PNGIndustryNews. I would guess few people will take the time, but it's more than worth it. Then as things play out it's much easier to understand what's real and what's portrayed as chaos, turmoil, etc.

[Movieguy]

Lots of reading and listening/watching. People would do well to read up on the Alotau Accord which was what the coalition was formed upon. The things contained in it are what has been and is being acted upon. That's why things are moving as swiftly as they are. Very orderly and with wide support. This Accord draws heavily upon the 2030 National Plan and 2050 Vision; makes sense. Work the plan. Also there are long but very valuable interviews with people inside and outside of PNG which discuss what is going on in PNG, and what needs to be done. These can be found here: http://www.emtv.com.pg/business/businesspng Pretty impressive lineup of people and you can watch and listen to exactly what they have to say; not some edited and/or biased written story in The National, PC or PNGIndustryNews. I would guess few people will take the time, but it's more than worth it. Then as things play out it's much easier to understand what's real and what's portrayed as chaos, turmoil, etc.

Thank you for these excellent resources.  Nothing like getting it straight from the source.