New gas projects ASAP: O’Neill

[Justin94360]

New gas projects ASAP: O’Neill

Friday, 13 September 2013 PRIME Minister Peter O’Neill aims to advance gas projects in Papua New Guinea as its mining and agricultural industries experience downturns. Prime Minister Peter O'Neill. Photo by Michael Cairnduff. “Most of you will know, while we are benefiting from the massive construction phase of our first LNG project, other sectors are being hit hard by low world commodity prices,” O’Neill said at the PNG Advantage conference this week. “The world prices for some of our major agricultural production remains depressed, especially cocoa and copra. And even industries where prices are better, such as for coffee, infrastructure and other issues remain a serious challenge. “And in recent months, gold prices and prices for minerals generally have declined, some significantly. “This is already having an impact on our existing mining operations and on projects at various stages of development.” The PM then said the development of PNG’s natural gas resources could not be better timed. “Even though the [PNG LNG project] construction phase is coming to an end, we will continue to benefit through strong revenue inflows to the government and export income, when construction ends and export begins,” he said. “That will deliver high GDP especially in 2015. “Our challenge is to work with gas sector investors and developers to bring new projects to the development stage as soon as possible.” InterOil’s Elk-Antelope field in Gulf province is widely expected to be the next focus for LNG commercialisation. ExxonMobil has been negotiating to buy a 4.6 trillion cubic feet of gas slice of this field to underpin at least a third train expansion of the PNG LNG project. However, the exclusivity arrangements of negotiations lapsed in August, allowing InterOil to restart negotiations with other previous bidders, which are believed to include French supermajor Total SA and Royal Dutch Shell. O’Neill also revealed more about his plans to create economic hubs out of Port Moresby, Lae, Mt Hagen and tourism-focused Kokopo. “Over the next 10 years, the focus will be on ensuring the economies of these centres can grow substantially through attracting new industries and supporting existing industries and businesses to expand,” O’Neill said. “That will require the national government, working closely with provincial and local government leaders, to provide modern and efficient infrastructure, better schools and hospitals and more reliable services such as power and water. “It will also mean a significant expansion of housing for Papua New Guinean families who will be the main workforce in these economic centres.” O’Neill also discussed plans to foster the small to medium enterprise sector, especially to combat widespread unemployment. “I am told Indonesia has close to 40 million small businesses,” O’Neill said. “We have not much more than 40,000! We need to multiply that number – and we need to do so as soon as is practicable. “The government has a 12-point plan we are beginning to implement.” Click here to read the rest of today's news stories.

[Tree]

GIFDWNTFMASAP! said O'Neill

[Resourcearb]

Treasury Minister Don Polye briefed Parliament about PNG LNG yesterday and touted it as a game changer for the country. I heard that he made some comments about further expansion of the project and importantly, there is pervasive support in Parliament for the PNG LNG expansion underpinned by Elk/Antelope. Hopefully there will be more detailed press on the affair in the coming days.

[ArtM72]

Treasury Minister Don Polye briefed Parliament about PNG LNG yesterday and touted it as a game changer for the country. I heard that he made some comments about further expansion of the project and importantly, there is pervasive support in Parliament for the PNG LNG expansion underpinned by Elk/Antelope. Hopefully there will be more detailed press on the affair in the coming days.

And on the flip side of that coin as reported in the National:

"Minister for Commerce and Trade Richard Maru said the country would only receive K1.5 billion in revenue from 2015 while the Government had incurred a lot of commitments.

"He said the Government had given away many fiscal incentives, leaving it with nothing, and should not rush into any more projects of such magnitude."

[Resourcearb]

New gas projects ASAP: O’Neill

Friday, 13 September 2013 PRIME Minister Peter O’Neill aims to advance gas projects in Papua New Guinea as its mining and agricultural industries experience downturns. Prime Minister Peter O'Neill. Photo by Michael Cairnduff. “Most of you will know, while we are benefiting from the massive construction phase of our first LNG project, other sectors are being hit hard by low world commodity prices,” O’Neill said at the PNG Advantage conference this week. “The world prices for some of our major agricultural production remains depressed, especially cocoa and copra. And even industries where prices are better, such as for coffee, infrastructure and other issues remain a serious challenge. “And in recent months, gold prices and prices for minerals generally have declined, some significantly. “This is already having an impact on our existing mining operations and on projects at various stages of development.” The PM then said the development of PNG’s natural gas resources could not be better timed. “Even though the [PNG LNG project] construction phase is coming to an end, we will continue to benefit through strong revenue inflows to the government and export income, when construction ends and export begins,” he said. “That will deliver high GDP especially in 2015. “Our challenge is to work with gas sector investors and developers to bring new projects to the development stage as soon as possible.” InterOil’s Elk-Antelope field in Gulf province is widely expected to be the next focus for LNG commercialisation. ExxonMobil has been negotiating to buy a 4.6 trillion cubic feet of gas slice of this field to underpin at least a third train expansion of the PNG LNG project. However, the exclusivity arrangements of negotiations lapsed in August, allowing InterOil to restart negotiations with other previous bidders, which are believed to include French supermajor Total SA and Royal Dutch Shell. O’Neill also revealed more about his plans to create economic hubs out of Port Moresby, Lae, Mt Hagen and tourism-focused Kokopo. “Over the next 10 years, the focus will be on ensuring the economies of these centres can grow substantially through attracting new industries and supporting existing industries and businesses to expand,” O’Neill said. “That will require the national government, working closely with provincial and local government leaders, to provide modern and efficient infrastructure, better schools and hospitals and more reliable services such as power and water. “It will also mean a significant expansion of housing for Papua New Guinean families who will be the main workforce in these economic centres.” O’Neill also discussed plans to foster the small to medium enterprise sector, especially to combat widespread unemployment. “I am told Indonesia has close to 40 million small businesses,” O’Neill said. “We have not much more than 40,000! We need to multiply that number – and we need to do so as soon as is practicable. “The government has a 12-point plan we are beginning to implement.” Click here to read the rest of today's news stories.

In the context of O’Neill’s newfound political omnipotence, this article attains even more significance for InterOil.  The government has transitioned from obstacle to facilitator for InterOil, and with 10+ Tcfe of resources (and possibly 20+ Tcfe with T-3 and Wahoo 1 & 2), expedited commercialization translates into a windfall to investors.  This has implications not only for approval of the Exxon deal but also for the value of Triceratops and Wahoo, which should have its first well spud shortly.  Investors haven’t fully grasped the amount of value created for InterOil from a combination of O’Neill’s political power and his sense of urgency to expedite new gas projects.

[petrengr1]

Nothing new here but I have not seen this elsewhere. My apologies if it is already here.

http://www.clickpress.com/releases/Detai...05cp.shtml

[kommonsents]

Thanks Petrengr1. Every little bit helps. Seems the word is spreading.