It turns out preparations are already underway for IOC’s projects…
This comes after it was revealed that InterOil was already embarking on FEED for their liquids project
LNG projects spur Gulf development
By PETER SEA
THE Gulf Province is gearing up for major infrastructure development to support oil and gas projects in the country. It plans to build a deep sea port and industrial park in Orokolo Bay and also open the road linking the neighbouring Highlands provinces. Gulf Province Administrator Simon Peter, Gulf Investment Trust Fund managing director Soroi Marepo Eoe and Mark Baiai, the executive director of the Gulf Provincial Economic Development Authority revealed the plan on Wednesday in Port Moresby.
According to Mr Peter the deep sea port and industrial park are major development packages that will ensure the whole of the Gulf Province benefit from the oil and gas projects.The provincial government is embarking on these projects to cash in on the oil and gas projects that are set to start and those that are still in the pipeline, especially off-shore explorations.
Through Gulf Oil and Gas company, the provincial government has 20 per cent equity in the deep sea port development, Mr Baiai said. He said the deep sea port and industrial park, when they are in place, will open the way for another sea port for the seven neighbouring Highlands provinces. “It is closer from the Gulf Province into the Highlands,” Mr Baiai said. “We will open the road from there into the Highlands.”
There are discussions going on between the provincial government and InterOil and Petromin to look at the area and help with the projects, Mr Baiai said. An investor from overseas is being courted to finance the projects with the provincial government as a joint venture on a build, operate and transfer (BOT) arrangement. On the industrial park, the government plans to build an oil and gas discharge facility, a major power plant and a cement plant.
Gulf to build LNG support facilities
By SHEILA LASIBORI
THE Gulf provincial government is leading the way in developing infrastructure for business activities in the province to support the InterOil-led liquefied natural gas (LNG) project. The deep water port development at Orokolo Bay and the industrial park are the main projects, among others, being spearheaded by the provincial government led by Governor Havila Kavo. At present, the hydrographic survey and feasibility study and infrastructure development are being carried out.
The project is conducted in consultation with project developer InterOil and Petromin (PNG) Holdings Ltd. According to Mark Baiai, the executive director for Gulf Provincial Economic Development Authority (GPEDA), the provincial government through its company Gulf Oil and Gas holds 20% equity interest in the deep water port project under the build, operate and transfer (BOT) scheme. The local people from both impacted and non-impacted areas will be offered shares in the company. The deal was with Hong Kong-based company Energy World Investment (EWI).
The 20% equity is a free carry interest which will increase to 49% after 25 years based on commercial terms the provincial government entered into with EWI. EWI holds 80% interest, which will change to 51% at the end of the 25 years. Mr Baiai said the port’s location was strategic, being located directly south from Elk/Antelope project sites, and it is also accessible from by other provinces mostly in the highlands.
“It is strategic because it can become the next economic port which will support activities up in the Highlands and also would contribute to the country’s economic development.” He said the GPEDA, together with Gulf Investment Trust Fund (GITF), developed the concept. Mr Baiai said the industrial park also included developments for the deep sea port for the discharge of gas condensate, the dissemination of LNG from Elk/Antelope. The authority also aims to support the InterOil project in providing the facilities to store and export the LNG product.