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News |
Thursday 11th April 2013 |
Opposition slams Govt’s dealings
THE Opposition has warned that moves to dismantle Petromin Holdings and to bring PNG Sustainable Development Program Ltd Singapore registered office onshore would have wide negative implications on foreign investment to the nation.
Deputy Opposition leader Sam Basil said that two international companies - Royal Dutch Shell who entered into a strategic alliance with Petromin in 2011 and mining giant BHP Billiton whose 52 percent share was voluntarily surrendered under the PNGSDP arrangements will be on ringside seats watching the government’s decision and actions.
“But I must warn the government of Prime Minister Peter O’Neill that they won’t be the only ones – the mining, oil and gas players worldwide will also be watching to see whether the decisions reflect PNG as a good investment destination or put them off as future investors and potential joint venture partners,” Mr Basil said yesterday.
He said that both decisions, if indeed true, affirm and further expose the knee-jerk decision-making style and reneging on agreements that is fast-becoming a trademark of Prime Minister O’Neill.
Mr Basil was referring to recent reports in the Post-Courier and internet posts on online portal PNGIndustryNews.net on a purported National Executive Council decision (NEC decision number 85/2013) approving the repeal of Petromin Act.
He was also referring to the O’Neill government’s intention to bring PNGSDP Singapore registered office and accounts onshore so the government and landowners would have more say on funds usage.
“This issue is likely to be watched closely by multi-billion kina mining giant BHP Billiton who relinquished their 52 per cent stake in Ok Tedi Mining Ltd under this arrangement as opposed to normal commercial disposal of shares.”
Mr Basil said that decisions with multi-million kina implications – and involving both foreign and domestic investors – should be handled delicately and with finesse.
“The Opposition is extremely concerned to hear that Petromin Holdings Ltd – a State company established by former Prime Minister Sir Michael Somare in 2007 – to manage the State’s interest in oil, gas and minerals would now be axed,” he said.
“What consultations, if any, have been made on how to address the assets and shares of Petromin Holdings Ltd in problem-plagued Tolukuma goldmine, the Elk-Antelope field, the PNG LNG Project, the central Moran field and even the new Petromin Building opposite Murray Barracks? And what about the strategic alliance deal between Royal Dutch Shell and Petromin in 2011?
Mr Basil said that while the establishment of Petromin Holdings Ltd was done amid controversy, and it has either not been utilised or made some highly questionable decisions, this State company has made business transactions and accumulated assets and liabilities.
“How is the government going to ensure that this assets and liabilities are valued right and handled prudently and transparently so nothing disappears through “man-made cracks” into private holding businesses and is liquidated if there is a decision to establish separate entities,” Mr Basil said.
“State credibility and reputations can be destroyed with knee-jerk decision-making like this one. And given the architect of the Petromin Holding Ltd, former Prime Minister Grand Chief Sir Michael Somare is a part of the O’Neill government, this decision hints at instability within government ranks.”
Mr Basil said the decision is not good for foreign investors considering doing business in Papua New Guinea.
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HoHo to RDS! Back door no more! Sounds like the front door may have been barred.
.....time will tell
