Two very significant stories from the PNG press

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

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

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.

8 thoughts on “Two very significant stories from the PNG press”

  1. I support with the Interoil and our Governor Havila Kavo to build the deep water port development at Orokolo Bay. It is because the Elk/Antelope project development is in the living hood of our Gulf Provinces – Kikori, Baimuru and Ihu and two big rivers Purari and Vailala. This whole Elk/Antlope project will affect our people’s living hood. It is therefore by building the deep water port developmeent at Orokolo Bay will benefit our people. Our people are happy the live style they are living now, but because of the riches, the Investor’s are taking that away from our land. That is the reason Havila you become the centre of our Gulf people and don’t let money blind your eyes.

    Thank you and do what is best for our people’s living hood.

  2. Progress comes with development. If we people of Gulf Province start thinking negatively, opportunities will come and go.
    My heart cries alot when I see our people frequenting markets in Port Moresby selling bettle nuts & sago. I know the roads they take to bring them to Port Moresby. Its never easy. By sea and road. All because of sending children to school. That was and still is the only source of income. Ratios will show alot of children from parents who are subsistant farmers in the village never got to complete all educational levels.
    So with that in mind, such an opportunity of development in the Province should not be hindered. This is a new chapter for the people of Gulf province.
    It is how well we master the decision making of our mother land and what can be guaranteed for the people.
    Let us also teach the values of our land to our children, have them written down and history be kept. This is not our furture. It is the further of our children and their children. The decisions our leaders make becomes the deciding factors.
    Mr. Havila, the furture of our children are in your hands.
    May God guide you in doing the right thing.

    A ground breaking ceremony organised by the Governor Havila Kavo will be held in Ihu Station, Gulf Province between 4-7 January 2011. There is very little information about what this is for, similar to the mobilisation and awareness exercise it conducted sometime in March of 2010. The simple villagers were confused then, and are not sure about this ground breaking ceremony. There is very little awareness and critical thinking put into all these activities. Whilst there is a lot to be desired of the provincial administration, it is necessary for the Governor to put his house in order first instead of signing agreements and launching projects here and there.

  4. Ihu people of Popo, Ahia,Orokolo and Kouri are the Tradition Landowners. We as the people of Ihu now well know that Elk/Antelope oil and gas fields are in our tradition land. There are tribes of Popo, Ahia, Orokolo and Kouri form as the constition of Ihu Sub-District of Gulf Province. Our ancestors first settle upper Purari and overlooking Vailala river. However, during tribal fighting among families, they divided themselves into tribes moving around from upper Purari and Vailala rivers to the coastal areas,where they are now today. It seems Interoil, our Governor, and State are pushing Developers and Investors to go-ahead without giving awareness to landowners. The landowners have to prepare their ILG and get Social Mapping to do their land title boundaries. All these things cost money and where on earth our Ihu people will get money to pay for all these expenses. So where is our Governor, Havila Kavo now to assist financial help for his people. I therefore recommend our Ihu people’s right that the Governor and State have to look into assisting their ILG and Social Mapping expenses.

  5. Last month we had Interoil Anthropologist and social mapping teams in villages situated near or along the pipeline route to Bluff. The interoil team took family list and birth certificates of villages including for relatives leaving in other provinces. Again there was no awarness by the provincial government or interoil. Everybody was taken by surprise. Interoil advised that birth certificate and ILG for each clan with be their responsibility to speed up the project. At the same time people in other villages are confused as to why only certain villages were included and not the whole Ihu district for these exercise. Please Governor people are confused, why are interoil doing things in secret. There was no goverment representive there to witness the exercise. What will happen to the other 3 constituency in the IHU district who has formed associations and companies. Please we need more AWARENESS for whats happening..

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