Posts: 18
Threads: 5
Joined: Dec 2011
Reputation:
12
Here is the link:
NANOL: He says discussions for PNG's Second LNG project, being lead by Canada's InterOil Corporation which has already discovered gas at its Elk and Antelope wells in PNG's Gulf province is also underway.
Minister Duma says the PNG government wants InterOil to find a major partner to develop the project.
DUMA: Now I am pleased to hear that they're having exclusive negotiations with ExxonMobil. Now you must remember we have an existing project agreement with InterOil which was signed in 2009. If InterOil do reach an agreement with ExxonMobil they will then have to inform the government. Now once we have received formal advice from InterOil that they have reached some kind of confirmed agreement with ExxonMobil, we will then review it and see whether it meets the requirements of the 2009 project agreement we signed with InterOil. We will also review and see whether it meets some of the undertakings contained in the project agreement between the state and ExxonMobil. We will work out if it affects the existing agreement with ExxonMobil, the first LNG project. There are some things that ExxonMobil promised not to do and to do, so we will assess those. The main thing is we will assess whether the proposed agreement between InterOil and ExxonMobil meets the requirements of the existing 2009 project agreement between the state and InterOil. If it meets the requirements, then government will have no objection. If it does not, then we'll advise ExxonMobil and InterOil of the steps that they need to take to ensure that it complies with that agreement. There are also other issues such as obviously the issue of competition. The question that we need to ask ourselves is whether it is in the interests of this country to allow just one company, one major energy company to dominate the industry in our country, if it is good for the country.
Posts: 1,112
Threads: 88
Joined: Feb 2012
Reputation:
109
Two interesting quotes:
1) "If it does not, then we'll advise ExxonMobil and InterOil of the steps that they need to take to ensure that it complies with that agreement.".....sounds like Duma is confirming that Interoil WILL make it happen. Even if there are issues the Govt will assist to make needed changes
2) "There are also other issues such as obviously the issue of competition. The question that we need to ask ourselves is whether it is in the interests of this country to allow just one company, one major energy company to dominate the industry in our country, if it is good for the country."...Seems to leave the door open for Total or RDS...time will tell
Posts: 4,164
Threads: 1,500
Joined: Dec 2011
Reputation:
268
The time for Duma to be made to 'look good' is now.
Credit for the maxing out of LNG project #1, the sanctioning of LNG project #2 and the early endorsement of LNG project #3 will go to Duma.
Posts: 8,568
Threads: 1,342
Joined: Dec 2011
Reputation:
380
iluvioc • 17 minutes ago Flag
3users liked this postsusers disliked this posts1Reply
Politics
Anyone who thinks this project will not go through and go through on the fast track has been here for only a week or is as dumb as a sack of rocks. The XOM/IOC projects are the life blood of the PNG economy. It represents jobs, taxes,royalties,. These politicians do not want to face their electorate and tell them their jobs are on hold until a few hands are filled with $$$s. Going forward is best for everyone so it will go forward. No more complicated than that!
Posts: 1,598
Threads: 195
Joined: Dec 2011
Reputation:
303
06-13-2013, 12:02 AM
(This post was last modified: 06-13-2013, 12:03 AM by Stavros.)
Here are my perspectives on the issue of competition that Mr. Duma brought up:
Yes he's right that no one ever wants to see a lack of competition in any shape or form that could undermine the Government’s mandate to bring benefits to the entire population at large.
The way I see it, XOM as the “plurality” shareholder in PNG LNG, and now in the PRL 15 venture, will not in any way hurt the PNG industry.
Significant additional synergies come from the overlap in these two projects. It also brings pricing power for all the spot LNG cargoes to be exported in the future. If someone such as Shell was running E/A, then they might wind up trying to “undercut” XOM and vice-versa, which would result in significantly reduced revenue for PNG.
I’m sure that XOM will give the Government all the needed assurances and will get speedy approvals as a result.
After all, time is money as the saying goes. The sooner XOM has the gas from PRL 15 under contract, the sooner they will sanction the PNG LNG Train #3 project and retain all the workers for the construction. Then comes the huge revenue stream for PNG in 2-3 years – LNG sales + taxes etc.
Ideally, you want to see a new LNG Train up and running every 12-18 months until you have 6+ of them.
My oh my ... that would be wonderful for PNG and ALL the people will benefit nicely.
Since the blessing has been given publicly by the Honourable Prime Minister Peter O’Neill CMG, I suspect the Honourable William Duma, as the PNG Minister for Petroleum & Energy, will do the appropriate Due Diligence quickly and approve the venture without delay.
I believe that if approval is held up it will be viewed in a somewhat negative way by all the other major oil and gas companies who are keen to join the PNG circle (PTT, Pertamina, Total, Chevron, etc).
Posts: 1,080
Threads: 26
Joined: Dec 2011
Reputation:
137
'mmcmlmcm' pid='24145' datel Wrote:
Here is the link:
NANOL: He says discussions for PNG's Second LNG project, being lead by Canada's InterOil Corporation which has already discovered gas at its Elk and Antelope wells in PNG's Gulf province is also underway.
Minister Duma says the PNG government wants InterOil to find a major partner to develop the project.
DUMA: Now I am pleased to hear that they're having exclusive negotiations with ExxonMobil. Now you must remember we have an existing project agreement with InterOil which was signed in 2009. If InterOil do reach an agreement with ExxonMobil they will then have to inform the government. Now once we have received formal advice from InterOil that they have reached some kind of confirmed agreement with ExxonMobil, we will then review it and see whether it meets the requirements of the 2009 project agreement we signed with InterOil. We will also review and see whether it meets some of the undertakings contained in the project agreement between the state and ExxonMobil. We will work out if it affects the existing agreement with ExxonMobil, the first LNG project. There are some things that ExxonMobil promised not to do and to do, so we will assess those. The main thing is we will assess whether the proposed agreement between InterOil and ExxonMobil meets the requirements of the existing 2009 project agreement between the state and InterOil. If it meets the requirements, then government will have no objection. If it does not, then we'll advise ExxonMobil and InterOil of the steps that they need to take to ensure that it complies with that agreement. There are also other issues such as obviously the issue of competition. The question that we need to ask ourselves is whether it is in the interests of this country to allow just one company, one major energy company to dominate the industry in our country, if it is good for the country.
Transcript incorrect;
... whether the current or proposed aggrement....
"current agreement" ???
![<img src=]( "Cool") " border="0" class="smilie" src="images/smilies/cool.gif" />
Posts: 6,851
Threads: 697
Joined: Dec 2011
Reputation:
441
06-13-2013, 12:51 AM
(This post was last modified: 06-13-2013, 12:57 AM by Palm.)
PNG has a lot of control over who partners are, and that can be dictated in the Project/Gas Agreement. PNG LNG project was approved first. And even at that time they had a very good idea that this industry was getting ready to explode. Unless the 2009 agreement states that IOC must work with someone other than Exxon, that would have been an issue before the exclusive talks were announced on May 24th. And O'Neill would not have stated enthusiastically in Parliament that IOC and Exxon had made the government aware of these talks and that within 60 days negotiations would be completed. PNG has plenty of interest in its petroleum assets from the likes of Total, Shell and others as shown by the bidding process on PRL 15. They would be foolish to suddenly say to IOC and Exxon that they are forbidden to form a partnership. How do you tell the company that has been responsible for bringing your country its first LNG project that LNG project #2 is not theirs at this point because of the need for competition? You don't.
Posts: 2,904
Threads: 58
Joined: Mar 2012
Reputation:
259
For the life of me I simply can't understand how Duma can say this stuff. It is as if he has not been made aware of anything that has transpired since the original 2009 IOC agreement. Now he's suggesting taking gas from E/A might be something "ExxonMobil promised not to do." (What the hell does THAT mean?)
This guy Duma is nothing but trouble. I can't understand why O'Neil put him in that position in the first place unless some serious blackmail was being undertaken. Left in his present position we're going to see another year's delay, that is if Duma's position has the power he suggests. 'Let IOC and XOM come to some agreement and we'll take a look at it'. Gimme a break.
Posts: 615
Threads: 20
Joined: Jun 2012
Reputation:
122
It would be a mistake, IMO, to attach much significant to the content of Duma's speech. What he is really saying is " I am a powerful and important person." Only the most westernized of the PNG elite have adopted the understated and careful tones which are characteristic of the elite in the U.S. .
Posts: 97
Threads: 2
Joined: Dec 2011
Reputation:
14
I think Mr. Duma, being phased out of power in oil and gas, is overstating his power for PR purposes. Maybe he has watched Joe Biden or Donald Trump PR events as models. I also think if he and his minions hold up approvals O'Neill will replace him very quickly. For now he remains a pain in the ass.
|
