Joint Venture pressures PNG by setting deadline for LNG project

NEWS DESK | AFP

SYDNEY - Oil Search has accused Papua New Guinea of backtracking on a deal to build a new liquefied natural gas project and set a 31 August deadline to resolve the dispute.

Oil Search is working in partnership with France's Total and US-based ExxonMobil on the US$13 billion site that would roughly double Papua New Guinea's exports of LNG.

The deal was signed in April, but since coming to office in May PNG's prime minister James Marape has raised concerns that locals will not receive enough benefit from the project.

"While initially indicating that the government had decided, in principle, to stand behind the agreement, more recently it has signalled its desire to renegotiate some of the agreed terms," Oil Search said.

Stressing that the agreement was "legally binding" and "fair and balanced", the firm said the "joint venture is seeking resolution by the end of August" when front-end engineering contract bids expire.

Although PNG's government is desperate to increase revenue and help develop one of the poorest countries in the Pacific, the new LNG project remains politically contentious.

A forecast windfall from an earlier multibillion-dollar LNG project -- which also involves Oil Search and Exxon -- has been much smaller than expected.

Researchers estimate the project created fewer than 1,500 post-construction jobs for Papua New Guineans and a fall in energy prices saw revenues dry up.

Go to this link for more: https://asopa.typepad.com/asopa_people/2019/08/joint-venture-pressures-png-by-setting-deadline-for-lng-project.html

Procurement system under review

Posted on The National

THE Health Department is doing its best to bring in quality medicines, says Health and HIV/AIDS Minister Elias Kapavore, pictured.
He said a major development partner, Asian Development Bank, was in the department to support and develop the department’s medical supply procurement and management system.
The minister said the procurement and distribution system was under review to ensure it efficiently delivered good quality medicines and medical supplies.
Kapavore made the statement in response to a front-page article in The National yesterday and said there were many challenges.
“Recently, there have been many incorrect and misleading information to the public and social media by an executive of the National Doctors Association (NDA),” he claimed.
“Such articles will only create unnecessary panic amongst the general public and must be corrected to assure our people that the Government, through the Department of Health, is working hard to ensure that basic and quality lifesaving medicines are available.
“I call on the NDA executives to exercise caution in its releases of information that they are not authorised to release.”
Kapavore said the National Executive Council recently approved two contracts for the supply of health centre and aid post kits and also for the supply of antibiotic drugs.
“Medical kits for health centres and aid posts are being packed in Port Moresby and will be transported to seven ports in the country before the end of August.
“For the antibiotics, it will be months before they are in the country. In the meantime, the department will procure emergency orders while awaiting the big orders to arrive.”
“Because of the delays in tender and all other processes outside the Health Department’s control, we will experience some shortages from time to time. But we will manage.”
Kapavore appealed to the NDA to not frustrate the procurement processes as any further delay to the already prolonged delays encountered, would cause critical medicine shortages.
“There are established legal processes for checks and balance that must be used to address any concerns,” he said
“These tenders went through a thorough screening process, through technical and financial evaluation committees, to ensure safety concerns are addressed.
“Under the Medicines and Cosmetics Act 1999, it is a legal requirement for any company dealing with pharmaceuticals in PNG to have a valid licence to import, wholesale and/or retail pharmaceuticals in the country.
“These licences are issued by the Pharmacy Board of PNG after specific requirements have been met and licences must be renewed annually.
“The Government is committed to improving the delivery of health services to our people and access to good quality medical supplies is a fundamental component of that commitment,” he said.

Go to this link for more: https://www.thenational.com.pg/procurement-system-under-review/

Koim challenges staff

Posted by The National

Acting commissioner general of the Internal Revenue Commission (IRC) Sam Koim says he has limited time and would like to make it count.
Koim, in his address to IRC staff in Port Moresby yesterday, said he was not there with a one-size fit all solution.
“I know that this great organisation has progressed well over the years under the leadership of then commissioner general Betty Palaso and commissioners Dr Alois Daton and Pauline Bre,” he said.
“Many of you have contributed to this progress so you should be proud,” he said.
Koim said the new level had posed new challenges, which were many and may not be solved overnight.
“The compliance rate of nine per cent last year, underreporting of K18 billion and an uncollected debt of K5 billion requires our undivided attention urgently,” he said.
“I do not see these figures as a problem, but an opportunity to make a difference.
“Imagine, by this time next year, we increased the compliance rate by 50 per cent, detect and reduce under-reporting by 50 per cent, recover 50 per cent of the outstanding debts, and prevent further under-reporting and uncollected debts accumulating.
“That is the difference I mean here.” Koim said whether one is a janitor, process clerk, auditor or assistant commissioner, everyone had a part to play to make it happen.
He assured the staff he would fight for the employees and for IRC.
“In return, can I count on you to fight for the making of this difference?”
“If it is to be, can it be up to you?
“Can you be the one to take the first step to see the difference?”
Koim will be visiting each division to learn of their work.

Go to this link for more: https://www.thenational.com.pg/koim-challenges-staff/

Oil Search share price value drops by K8.5 billion: Botten

By DALE LUMA - The National

THERE has been a drop of more than US$2.5billion (K8.5bil) in Oil Search Ltd (OSL) share price value largely due to unpredictable activities in the Papua LNG Project, says OSL boss Peter Botten, pictured.
The company managing director said the uncertainty in the timing of the project caused a large value to be removed from OSL’s share prices over the last few months.
“There has been a decline in our share prices since May this year by over US$2.5 billion (K8.5bil) which is largely related to events in Papua New Guinea,” Botten said.
“Clearly, the last few months have tested the confidence of investors with financing, insurance cost rise and ongoing uncertainty about what’s happening in Papua New Guinea.
“Predictability and stability is key to investor confidence and without this, the business becomes harder. We are the largest investor in PNG and when the country wobbles, we will wobble as well.
“Off course, we fully recognise and respect that any government has the right to review agreements, however, the Papua joint venture believes that the agreement that was signed earlier on in the year provides the State with greater benefits, quite rightly, than the PNG LNG Project.
“As PNG’s largest investor, we are very sensitive of this uncertainty surrounding where the Papua LNG agreement is going and we are working extremely hard to work with our joint venture partners and the Government to resolve any outstanding issues in a timely way.”

Go to this link for more: https://www.thenational.com.pg/oil-search-share-price-value-drops-by-k8-5bil-botten/

K340 million EU grant to benefit East, West Sepik farmers

By CLARISSA MOI - The National

THE rural farmers of East and West Sepik will benefit from a K340 million (€85 million) support grant from the European Union for agriculture development in the area.
Prime Minister James Marape, while acknowledging the European Union (EU) for the support during the launch of the grant to the greater Sepik region programme in Wewak yesterday, said this would extend to other parts of the country.
“The K340 million to the country is not easy and I thank the EU ambassador, Ioannis Giokrakis Argyropoulus, and (his) staff for working very hard to ensure we received this grant,” he said.
“This is the first of its kind and it’s coming into the East and West Sepik and will extend to Madang, Morobe, Western and other parts of the country – places where agriculture can grow well.”
The prime minister said cocoa production would benefit from the grant and vanilla, coffee, copra, palm oil, livestock and the rest of the agriculture sector would follow.
He acknowledged the former O’Neill-government for the input in securing the grant.
Argyropoulus said it was an investment for the benefit of all the people of PNG.
He said the grant was money from 500 million citizens of Europe and was one of the largest and biggest investments not only in PNG but the Pacific region.
Opposition Leader and Aitape-Lumi MP Patrick Pruaitch said the EU’s recognition of the agriculture potential of the Sepik region was a strategic helping hand.
“The agriculture sector has been and will continue to be the backbone of our developing economy and our society as it accounts for up to 40 per cent of gross domestic products (GDP),” he said.
“The resource sector driven primarily by mining and petroleum, currently brings in a greater portion of our export earnings but can we agree that agriculture is still and will continue to be the main source of employment, disposable income and livelihoods for most of our people.”
Pruaitch thanked the EU for the generous and timely support to the people of Sepik and the country.
East Sepik Governor Allan Bird also acknowledged EU’s support and asked the people of Sepik region to work towards ensuring the programme bore fruit.

Go to this link for more: https://www.thenational.com.pg/k340mil-eu-grant-to-benefit-east-west-sepik-farmers/