Oil Search on tenterhooks over Total’s Papua New Guinea gas deal

By Sonali Paul - Reuters

Oil Search warned on Tuesday that costs for a $13 billion plan to double gas exports from Papua New Guinea could rise if talks on a gas agreement between the government and Total SA drag on beyond next week.

Australia-listed Oil Search is a partner in Total’s Papua LNG project and Exxon Mobil Corp’s  PNG LNG project, which together aim to double LNG exports from the impoverished Pacific nation to around 16 million tonnes a year.

PNG’s new petroleum minister, Kerenga Kua, last week suddenly set out to renegotiate a gas deal with Total, which the company had signed in April with the previous government. Neither side has commented on the talks held last week in Singapore.

Oil Search Managing Director Peter Botten said on Tuesday further talks are planned this week and next week, with the aim of reaching an agreement by the end of August.

“It’s a dynamic environment at the moment,” said Botten, who was in Singapore during the talks, adding that he had been fully briefed on them.

He declined to comment on what issues have yet to be resolved or say how confident he was a deal would be done by the end of next week.

“I’m not going to put odds on it,” Botten told Reuters in an interview.

“We’re doing whatever we can to work with whoever we can to try and get this resolved as quickly as possible. Time is running out though.”

Botten has led Oil Search, PNG’s biggest company, for 26 years and has faced delays on projects before, but said the current uncertainty was rare in a country that has had a “very stable fiscal regime” for many years.

“It’s unusual that this is happening at such a critical time in the project.”

The Papua LNG project had already lined up bids from contractors to do preliminary engineering and design work, but those are due to expire in September, he said.

The companies risk having to pull together new bids if the existing bids fall over, and could face higher costs.

“It would be done in a market that probably would have a higher level of expenditure as the capacity in the market gets soaked up by new projects in other parts of the world,” Botten said.

Oil Search on Tuesday reported its half-year profit more than doubled to $161.9 million for the six months ended June 30 from a year earlier, just ahead of a consensus estimate of $160 million, on strong output from the PNG LNG project and higher oil-linked LNG prices.

The result last year was hurt by a shut down of PNG LNG following a major earthquake.

Go to this link for more: https://ramumine.wordpress.com/2019/08/21/oil-search-on-tenterhooks-over-totals-papua-new-guinea-gas-deal/

Drug row

By REBECCA KUKU - The National 

THE National Doctors’ Association (NDA) and the Government, specifically the National Health Department (NHD), appear to be heading for a “bruising showdown” over the country’s controversial procurement and supply of medicines (pharmaceutical drugs).
Despite the pro-government National Health Board’s (NHB) call to doctors to support and work with health secretary Pascoe Kase, the NDA is going ahead with its decision to submit its demands to the Government for the immediate change of the health secretary and the suspension of the two contracts, worth more than K100 million, awarded to Borneo Pacific Pharmaceutical Ltd (BPPL).
The NDA has indicated that it had 10 valid points for their demands, and that doctors would walk off their jobs if the Government did not act within a week after the submission of their demands.
NHB of Papua New Guinea deputy chairman Dr Mathias Sapuri called on doctors to support the health secretary and the NHD by offering appropriate technical advice and solutions as state employees.
“Health is a highly decentralised sector and was also highly complex and large. Therefore, its systems are set to ensure that health services are provided to all citizens of this nation,” he said.
“The role of the NHD is to develop policies, set standards, provide technical advice and monitor health services in the country. It is the responsibility of the provincial health authorities and public hospitals to deliver health services to our people.”
Sapuri said health sector employees, including the health unions, should not challenge the health secretary but to work with his management and offer advice, provide alternatives and work amicably with the department to efficiently and effectively address health challenges.
“The NHB is concerned with the ill-informed social media statements made by NDA, especially with regards to administration and management matters. “The matters raised by NDA are administrative and management in nature, and have clear and established processes to address.
“The NHB is of the view that the NDA interfered into management decisions and must stop creating unnecessary anxiety and panic,” he said.
“It is not the role of the NDA to disrupt and undermine legitimate management decisions. We are disappointed with the way certain professional people are conducting themselves under the good name of the NDA.”
Sapuri also said NHB wanted the NDA executives and the health department management to hold roundtables for the exchange of views and to find common grounds to move forward. “We must stop this nonsense because while you continue to argue in the media and make a mockery of yourselves, people continue to suffer from the vital services we are ethically obligated to deliver,” he said.
“NHB also views that Kase and his management have done so much to address the ever-growing challenges and it is only a matter of months that we will begin to see all these major system reviews and reforms bearing tangible outcomes.”
However, NDA secretary and chief of emergency medicine Dr Sam Yockopua told The National there had never been any such a board as the NHB.
“There has never been any meeting for the last five years even though they are supposed to meet 24 times a year.
“Kase is the chairman and the board has not been functioning. Much of the chaos and dilemma seen at the health department are directly due to this. And this is one of the 10 reasons why we want the secretary to be changed,” he said.
Yockopua said NDA would go ahead with its strike and would be presenting their demands to Prime Minister James Marape this week for the immediate removal of Kase.
Marape is away in Indagen for the 100th anniversary celebration of the establishment of the first Lutheran Mission in Morobe, and is expected to return to Port Moresby tomorrow.

Go to this link for more: https://www.thenational.com.pg/drug-row

Manus Island asylum seekers offered voluntary relocation to Port Moresby

BY MAANI TRUU -SBS News

The remaining asylum seekers on Manus Island appear to have been offered the chance to voluntarily relocate to Port Moresby, according to a notice reportedly posted on the island by Papua New Guinea's Immigration and Citizenship Authority (ICA). 

If accepted, the notice claims the men will "continue to receive services like those currently available to them", be provided with residential accommodation, health services, vocational training and employment support.

"Relocation to Port Moresby is not permanent settlement in PNG. ICA continues to encourage refugees to consider settling in PNG," the notice, on a ICA letter head, reads.

"Refugees are not subject to immigration detention and will not be detained by ICA." It is unclear whether the Australian Department of Home Affairs was involved in the decision to offer relocation. 

Refugee coordinator at Amnesty International Australia, Dr Graham Thom, said the announcement was "great news".

"The PNG government are ultimately doing the right thing in welcoming these people into their community and giving them freedom from detention while a solution is found," Dr Thom said in a statement on Monday.

"It is vital that there is a long-term plan for these refugees and that their rights are protected."

Amnesty International Australia told SBS News they understand many of the men on Manus are considering accepting the offer of relocation.

Kurdish journalist and asylum seeker Behrouz Boochani said the move meant the Manus Island asylum seeker centre would be closed, but there is yet to be an official statement on the future of the camp.

"The government has officially asked 120 men on Manus to transfer to Port Moresby. It means they will close Manus prison camp and continue this political game in PNG’s capital city," he posted on Twitter.

Dr Thom said the Australian government could not "wash their hands of responsibility for them [the asylum seekers] once they have relocated".

"They put them on Manus, and they are responsible for ensuring they are suitably resettled, including bringing them to Australia where appropriate," he said.

"Greater clarity about their legal status and how it might affect their ability to settle elsewhere if they choose to transfer is also needed. Some of these men have family in Australia or elsewhere and will wish to join them."

Earlier this month, dozens of men whose asylum seeker claims had been rejected were transferred from Manus Island to a new Australian-funded immigration centre in Port Moresby.

Australian taxpayers paid $20 million for the construction of the new Bomana immigration centre, designed to house non-refugees ahead of deportation.

In July, the Department of Home Affairs told SBS News that 457 asylum seekers remain in Papua New Guinea, 117 of which, they said, had been found not to be refugees.

The Department of Home Affairs have been contacted for comment about the notice.

Go to this link for more: https://www.sbs.com.au/news/manus-island-asylum-seekers-offered-voluntary-relocation-to-port-moresby

PNG seeks $1.5 billion loan from Australia

By Angus Grigg - Financial Review

Papua New Guinea is seeking $1.5 billion in loans from Australia to help fund government spending programs, just weeks after floating the idea of China refinancing its entire national debt. Commerce Minister Wera Mori said the proposal was raised with Treasurer Josh Frydenberg at a meeting on Monday.

“I would like to see it [the loan] done by Australia alone, but if not Australia could take the lead,” he told The Australian Financial Review on the sidelines of a conference in Sydney.

“Australia has always been our friend, where else can we go.” Mr Frydenberg declined to comment but confirmed he had met with PNG's Treasurer Sam Basil.

In recent years Australia has balked at providing budget support to PNG since ending the practice in June 2000 and concentrating on direct funding of aid programs.

Since then Canberra has typically worked through multilateral organisations such as the World Bank or the International Monetary Fund when helping to finance budget support programs.

Such a reluctance to intervene directly may have eased in recent years as China looms larger as a strategic competitor in the Pacific and the Morrison government seeks to re-focus on the region as part of its “Pacific step-up”.

PNG last requested financing support from Australia in 2017, when the former government of Peter O’Neill sought to have Australia’s entire $558 million annual aid program delivered in the form of budget support.

Canberra rejected the idea, with former minister for international development Concetta Fierravanti-Wells warning that “aid was not charity”.

Corruption has been one of the major concerns in providing direct budget assistance, but Mr Mori said the new government of James Marape was “stepping up the fight” in this area.

“We have demonstrated this by holding a commission of inquiry into the UBS loan and we are strengthening ICAC [Independent Commission Against Corruption]," he said.

Earlier, Mr Mori told the PNG Investment Conference that new loans were needed to shore up the budget and stabilise the economy.

“The new Marape/Steven government is looking for some type of assistance from the Australian government to stabilise the PNG economy and for budget support,” he said.

On the sidelines of the conference, Mr Mori indicated fresh funds would not be sought from China for budget support.

“I think we have too much exposure to China ... that’s just my personal view,” he said.

Earlier in the month a press release from Mr Marape’s office indicated PNG was seeking $11.8 billion from China to restructure its national debt.

But just a day later the Prime Minister sought to hose down any loan package from China, saying the statement was put out without his knowledge.

Mr Marape said PNG was seeking assistance from China along with others such as the World Bank and "non-traditional partners".

The PNG economy has faltered this year amid foreign exchange shortages and a lack of new resource projects, leading to government revenue falling well behind budget targets.

Stephen Howes, a PNG specialist at the Australian National University, said PNG's economic recovery in 2018 had stalled this year and the country continued to suffer from boom and bust cycles.

“To be sure, future-year prospects are better, with some important infrastructure projects underway and the Papua LNG agreement signed, though now under review,"  he wrote in a blog post on August 8.

Go to this link for more: https://www.afr.com/policy/foreign-affairs/png-seeks-1-5-billion-loan-from-australia-20190819-p52in6

Mobil launches first speedy site fuel station

Posted on The National

PAPUA New Guinea’s first speedy site service station has been opened at 7-Mile in Port Moresby to give new entrepreneurial opportunities for local businesses.
The 7-Mile service station, which was opened yesterday, is a partnership between Mobil Oil Niugini Ltd in partnership with local business Marra International PNG Ltd.
Marra International PNG’s managing director Robert Tia said discussions with the fuel supplier started 12 months ago to build a service station that was easy and fast, which Papua New Guineans could be able to be a part of.
Mobil Oil’s Asia Pacific senior director fuel sales Raymond Wong said the speedy site was a new concept unlike the traditional service station with the fuel storage tanks above ground level and able to relocate to meet infrastructure or road changes.
Wong said another benefit was that the stations were quicker to set up which would be beneficial to local communities in the country which required service stations to meet fuel demands as they were cheap to install.
“We’re talking about taking four to six months to commission a site versus the traditional site which takes up about 18 months to build,” he said.
Wong said the fuel storage tanks had a 40,000-litre capacity.
The 7-Mile service station added to the eight Mobil retail stations already established across the country.
ExxonMobil PNG managing director Andrew Barry said the introduction of the speedy site concept demonstrated the company’s ongoing commitment to investment in the country.
Barry said the speedy site had the potential to positively impact the country’s growing fuel demand.
A second speedy site opens in Lae today with plans to expand to 20 other locations across the country by the end of 2021.
Meanwhile, Tia told the media that the total investment for the service station was about K2.6 million.
He said Mobil would have invested K2 million on the service station and they (Marra International PNG) had invested over K600,000 on all the other developments of the shop.

Go to this link for more: https://www.thenational.com.pg/mobil-launches-first-speedy-site-fuel-station/