By Philip Undialu Hela Governor - via Facebook Post
IPIC deal of AU$1.68b was secured to meet our 30% financial obligation to secure 19.6% of PNGLNG project. IPBC mortaged 10.1% Oil Search so in 5 years, the Arabs will take over the shares. The importance of IPIC deal is we secured 19.6% shares in PNGLNG project now generating K1.8billion per year for KPHL. State stand to benefit more than K40b in 20 years project lifespan.
When IPIC deal matured, the Arabs were about to take over 10.1% Oil Search shares instead of other assets. The GoPNG had the choice whether to pay K3b cash or let go the 10.1% OSL Shares. PMPO in collusion with Peter Botten, MD of OSL decided to borrow US$1.2billion and keep the shares.
In March 2014 State borrowed US$1.2 Billion from UBS and retained 10.1% shares in Oil Search. Swiss Authories declared this deal illegal. PNG Obudsman has finalised its investigation and its report already submitted to Speaker of Parliament. Its expected to be tabled in the next session.
Peter Botten and OSL earned big time in this deal. PNG lost billions. From the US$1.2b, Oil Search paid US$900 million for all 22.8% shares held by Pac LNG in Elk Antilope (Oil Search Media Release 27 Feb 2014). Peter Botten laughed all the way to the board room with 22.8% interest in the Elk Antilope now Papua LNG purchased with US$900m and balance of US$300m cash. Unfortunaty the 8million people of PNG had no choice but to repay the UBS loan of US$1.2b with interest. We eventully lost the 10.1% OSL shares as well.
Inter Oil had 75.61 percent. On 26th March 2014 Inter Oil sold 40.1% to Total SE through a subsidiary of Interoil called SPI for US$401 million. If 40.1% for the same project was sold for US$401m to Total, Why OSL paid US$900m for just 22.8%?
Two different purchase prices on the same project. Why did Oil Search paid US29.47 million more for every percent? Had State bought the 22.8% direct from Pac LNG, we would have paid US$228 million only, going by the benchmark set by the Inter Oil and Total SE transaction, why did the State paid an extra US$672 million is the question, we want PM to answer instead of misleading public with IPIC Loan.
A complete mass was created and now State sold it's shares in Oil Search leaving a major loss. I don't know how much was lost and what happened to the LNG Revenue mortgaged for the UBS loan held in the escrow account.
Sadly, PNG's 10.1% shares were later sold at a much cheaper price to offset high cost of UBS loan. That means we lost both US1.2billion UBS as well as the 10.1% shares in OSL.
Peter O'Neill and Peter Botton are guilty of this fradulent deal that cost the 8 million people of PNG K3b (US$1.2b) as well as 10.1% OSL shares.
Lets talk facts. Stop misleading people by mixing up with IPIC deal and UBS deal. The IPIC deal secured us 19.6% in PNGLNG PAROJECT genwratibg K1.8billion every year for KPHL. The UBS loan is a loss of US$1.2b plus 10.1% Oil Search shares.
I feel for my fellow MPs still following these crocks blindfolded with lollies.
