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In Papua New Guinea, Exxon’s giant LNG project fuels frustration

Locals walk along a small beach where an LNG) carrier, Kumul, is docked at the ExxonMobil operated LNG plant at Caution Bay, located on the outskirts of Port Moresby in Papua New Guinea, November 19, 2018. Picture taken November 19, 2018. REUTERS/David Gray

Jonathan BarrettTom Westbrook | Reuters | January 17, 2019

From her red-roofed home near Papua New Guinea’s capital of Port Moresby, Isabelle Dikana Iveiri overlooks a giant plant used by Exxon Mobil Corp to liquefy billions of dollars’ worth of natural gas before it is shipped to Asian buyers.

Dikana Iveiri can also see swaths of muddy shoreline, where mangroves have been felled for firewood by locals who don’t have electricity, gas, or money to buy either.

The $19 billion Exxon-led PNG LNG project was supposed to be a game-changer for PNG, a vast South Pacific archipelago beset by poverty despite its wealth of natural resources.

But much of the promised riches, through taxes to the government, royalties to landowners and development levies to communities, have arrived well below Exxon’s own commissioned forecasts, if at all, according to landowners, the World Bank and the PNG government.

“My family has been here a long time,” said Dikana Iveiri, one of several landowners interviewed by Reuters near the PNG LNG plant. “Our royalties are not going well; they are using our land but not paying us properly,” she said referring to both Exxon, which pays the royalties and the government, which distributes them.

Since gas exports began more than four years ago, Dikana Iveiri said she had received just one royalty payment in 2017. She was expecting about 10,000 kina ($2,885) based on information given to her by the government and community leaders. She said she received 600 kina.

Exxon, community leaders and the government did not comment on Dikana Iveiri’s specific situation but in a statement to Reuters, Exxon said distribution of royalties and benefits to the LNG plant site landowners started in 2017. Cash payments to individual landowners would depend on how many landowners were in a precinct and were just one of the benefits communities received, Exxon said. 

The project employs nearly 2,600 workers, 82 percent of whom are Papua New Guinean and Exxon said it has invested $360 million to build infrastructure and pay for training and social programs.

“We could not be more pleased to see how the benefits are flowing to the communities at the LNG plant site, to see how investments are being made in important infrastructure such as schools and health that demonstrates the process is a good one and it works,” ExxonMobil PNG Managing Director Andrew Barry told a mining and energy conference in Sydney in December.

Barry said Exxon was hoping royalties would begin flowing in the pipeline and upstream areas “in the not too distant future”.

The government admits it has made mistakes.

PNG Prime Minister Peter O’Neill, who was part of the government but not the leader in 2009, said many of the disputes around PNG LNG stemmed from the way the government and Exxon proceeded with the project without first resolving landowner claims.

“It should have been done before, it wasn’t only for Exxon and the partners but even the government at the time did not do the proper clan vetting, proper identification of the land owners – they allowed this project to go on without that,” O’Neill told Reuters.

Treasury, the treasurer, and the Prime Minister’s spokesman declined to provide responses to Reuters’ questions about the project.

GAS-POWERED MONEY SPINNER

PNG LNG was completed ahead of schedule and exported 8.3 million metric tonnes in 2017, compared to its anticipated design capacity of 6.9 million tonnes, according to the project’s website.

Exxon does not disclose the project’s revenue or profits but research house Morningstar estimates it has generated $18.8 billion in revenue for Exxon and its partners since production started in 2014.

The project’s break-even price of around $7.40 per million British Thermal Units (mBTU) compares favorably to an average over $10/mBTU for eight recent gas projects in the region, according to analysis by consultancy Wood Mackenzie and Credit Suisse.

“The plant capacity has performed phenomenally,” Credit Suisse analyst Saul Kavonic told Reuters. “On cost, it’s much lower than peers … it’s got an ample resource base and it’s got a well-disciplined operator in the form of Exxon.”

The project’s contribution to Papua New Guinea’s economy and government finances is less clear.

PNG’s Treasury does not report project income figures, but government budget papers show tax revenue flowing from PNG LNG has been well below expectations.

In its 2012 budget, the PNG government estimated it would receive $22 billion in revenue over the project’s life to 2040.

In November, the government slashed its revenue forecast in half to $11 billion over the life of the project.

It identified 11 tax concessions, which along with a drop in gas prices, amounted to hundreds of millions in kina in annual revenue forgone.

A 2017 World Bank analysis found the project partners had negotiated favorable methods of calculating royalties to the government that allowed them to take various deductions. 

Combined with tax concessions, the project created “a complex web of exemptions and allowances that effectively mean that little revenue is received by government and landowners,” the World Bank said.

Exxon did not respond to questions regarding the World Bank findings and the World Bank declined to provide further comment.

Exxon’s partners, which include Australian-listed Oil Search Ltd and Santos Ltd, and a subsidiary of Japan’s JXTG Holdings Inc, referred Reuters’ questions to Exxon.

Exxon said in a statement to Reuters the project has generated 5 billion kina in revenue for the government and landowners via taxes, royalty and benefit payments. The figure includes revenue to the PNG state-owned stakeholders.

“SOME MISTAKES”

A second LNG project, Papua LNG, led by France’s Total with Exxon and Oil Search as minority partners, is scheduled to finalize an agreement with the PNG government in early 2019.

Papua LNG, a new gasfield using the same but expanded processing plant, could commence production as soon as 2024, according to Total. Analysts estimate it will cost around $13 billion.

“The experience of the first project developed by Exxon and Oil Search, there was some criticism, some mistakes,” Total CEO Patrick Pouyanne told Reuters in an interview in Port Moresby, referring to relations with landowners.

“Some lessons (are) being taken out … around the management of landowners and trying to engage at an early stage with them.”

Total has agreed to an undisclosed annual minimum payment to the government and to reserve some gas for local industry, he said.

Exxon did not respond to requests for comment on Pouyanne’s statements.

In its statement, Exxon acknowledged that “distribution of royalties and benefits in some project areas were delayed since the start of production due to court action by a small number of landowners which prevented the relevant government departments from completing their administrative processes.”

Exxon said it was committed to assisting the government ensure landowners receive royalty and equity dividends as soon as practicable.

Disputes have broken out within communities near PNG LNG facilities as landowners fight to have their claims recognized.

Some clashes have been fatal, said Highlands clan leader Johnson Tape, one of 16 clan leaders with a claim over the Komo Air Field, used by the Exxon project.

“Our clans fought each other, but now there is peace; we are one team fighting Exxon,” said Tape.

Christopher Havieta, the governor of Gulf Province, where gas fields for the new project are located, said locals wanted to avoid the experiences of Exxon’s PNG LNG.

“It was a foundation project and so a lot of exemptions were made and the end result is we have a lot of social problems that have risen up.”

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PNG LNG expansion obliged to reserve gas for domestic market

The Hides gas field is set to supply more gas for PNG’s LNG expansion. Richard Dellman/AdvantagePNG

Angela Macdonald-Smith | Australian Financial Review | December 3, 2018

Papua New Guinea Prime Minister Peter O’Neill has revealed that 10 per cent of the gas in the next phase of LNG expansion in the nation will be reserved for domestic use, while the tax structure from the $US12 billion project will be engineered to ensure a flow of revenues for the government even when commodity prices sink to their lowest point in the cycle.

The news on some of the key terms around the LNG project puts some meat behind the memorandum of understanding between the government and the Total-led Papua LNG venture announced during the APEC summit in Port Moresby last month.

But as signalled by that announcement, the timetable for the project has slipped, with the partners now only set to start initial engineering and design work on the expansion in the June quarter of 2019 after the delayed “gas agreement” setting out fiscal terms and other conditions is finalised in March. 

Jean-Marc Moiray, the new managing director of the PNG operations of Total SA, which is leading the Papua LNG project, told a conference in Sydney the French energy giant hopes now to give a final go-ahead for the project “before the end of 2020”, and for production start-up by the end of 2024.

Oil Search MD Peter Botten had hoped that the “gas agreement” with the government would be announced during the APEC summit. But the complexity of the negotiations and stretched government resources are understood to have contributed to the delay. Louie Douvis

The schedule represents a delay from that previously outlined by project partner Oil Search, which was targeting a final investment decision in 2019 and start-up in 2023.

Oil Search managing director Peter Botten had voiced hopes that the “gas agreement” with the government would be announced during the high-profile APEC summit. But the complexity of the negotiations and stretched government resources are understood to have contributed to the delay.

Mr Botten told the PNG Mining & Petroleum Investment Conference in Sydney on Monday that he still expects Papua LNG to capture the market opportunity seen opening for global LNG demand in 2023-24 but underlined the importance of the timing staying on track.

“Everyone can see [the market window in 2023-24] and the competition is starting to ramp up,” confirmed Andrew Barry, managing director of ExxonMobil PNG, which is a major partner in the expansion.

“PNG has got to get at the front of the line,” Mr Barry said, to capture both the market opportunity and to avoid cost escalation arising from increased demand on contractors.

As agreed in February, the expansion will involve three 2.7 million tonnes-a-year LNG trains that together will roughly double existing capacity in PNG from the Exxon-led PNG LNG venture. Two trains will process gas from the Total-led Papua LNG venture that owns the Elk and Antelope fields, with the third to be supplied by fields in the Highlands region within the PNG LNG project plus the P’nyang field further to the west.

Alongside the obligation to supply the domestic market, the LNG expansion project will have to allow third-party access to its pipelines to avoid stranded gas fields held by other companies, said PNG minister for petroleum Fabian Pok. National content obligations will also be imposed to ensure business opportunities for local companies.

Dr Pok said the PNG government had learned lessons from mistakes made with the initial PNG LNG project and would ensure conditions around the expansion would guarantee revenues for the government even during a price slump and would support local development, including using gas for power generation and to develop local industries

Still, industry sources say that the actual volume of gas kept for use within PNG will be much less than 10 per cent given the small local market and the time it will take to grow. The deal with the government is understood to allow gas unable to find a commercial market within PNG to still be exported as LNG.

Several projects using gas for electricity generation are in the works, including a 58-megawatt plant near Port Moresby by NiuPower, owned by Oil Search and Kumul Petroleum, due to start up in March.

ExxonMobil PNG also signed a deal at the conference with PNG Power to study the viability of a 5 MW power plant in Hela Province in the Highlands.

Only 12-13 per cent of PNG’s population has access to electricity despite the successful LNG export industry.

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Papua LNG group signs MOU with Papua New Guinea

Rick Wilkinson | Oil and Gas Journal | 16 November 2018

The Papua LNG joint venture partners led by Total SA have signed a memorandum of understanding with the government of Papua New Guinea for development of the Elk-Antelope gas-condensate fields, known as the Papua LNG Project.

The scope of the agreement includes priority terms and conditions forming the basis for a gas agreement as well as a timeline for negotiation. The gas agreement is scheduled for finalization during first-quarter 2019.

The MOU follows the Papua LNG and the ExxonMobil Corp.-led PNG-LNG joint venture parties reaching broad alignment earlier this year on the preferred downstream concept for the next phase of LNG development in Papua New Guinea.

The plan involves the construction of three 2.7 million tonne/year capacity LNG trains on the existing PNG-LNG plant site at Caution Bay just west of Port Moresby. Two trains will be supplied with gas from the Elk-Antelope fields and the third train by gas from existing PNG-LNG fields and the yet-to-be developed P’nyang field in the Western Highlands. Together Elk-Antelope and P’nyang contain an estimated 11 tcf of undeveloped 2C gas resource.

The Papua LNG Project is based on the Elk-Antelope reseources in petroleum retention license PRL15 in the Eastern Highlands. Total has 31.1% interest, ExxonMobil has 28.3% interest acquired when it bought InterOil Corp. earlier this year, and Oil Search Ltd. has 17.7%. These percentages are after the state of Papua New Guinea has backed into the project for 22.5%.

Papua New Guinea Prime Minister Peter O’Neill labeled the MOU as “another historic moment for Papua New Guinea and the beginning of the development of the second LNG (Project) in our country.”

He said, “Today’s memorandum paves the way for us to enter into a project gas agreement which will be negotiated between the parties over the next 3-4 months and to be concluded by Mar. 31, 2019.”

Peter Botten, managing director of Oil Search which, like ExxonMobil, is a participant in both joint ventures, said pre-FEED downstream studies on the three-train development concept are well under way. The scope of the engineering work includes design, process, and layout optimization of the expansion concept from the gas inlet to the LNG loading arm.

“Work taking place includes the brownfield tie-ins, compressor driver selection, LNG loading and shipping, condensate treatment, storage and loading, and execution planning,” Botten said. “We expect this will underpin entry into the full FEED stage.”

Botten added that discussions between the government negotiating team and the P’nyang (PRL—3) joint venture are well advanced. “With an integrated FEED entry decision required to advance the three-train expansion at the PNG-LNG site, completion of the gas agreement between the government and the PRL-3 joint venture is expected to occur in a similar timeframe to the Papua LNG Project,” he said.

The recent MOU for Papua LNG was signed as a show piece for Papua New Guinea during the Asia Pacific Economic Conference (APEC) in Port Moresby in the presence of Papua New Guinea Prime Minister O’Neill and Total Chairman and CEO Patrick Pouyanne.

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Low Tax Revenue From PNG LNG ‘Being Addressed’

Charles Abel

Post Courier | June 8, 2018

Audits into several major resource companies will run parallel with a joint exercise with commercial banks to identify taxpayers, Treasurer and Deputy Prime Minister Charles Abel announced yesterday.

“Audits are also underway by the Bank of Papua New Guinea into foreign currency accounts held by resource companies,” Mr Abel stated in an email.

“This is to ensure compliance with the remittance of proceeds in foreign exchange back to Papua New Guinea.

“Increased expectations for revenue collection at the IRC and Customs have also been factored in the 2018 budget, and collections are on track to date.

“I’ve been assured by the Internal Revenue Commission in writing that Kumul Petroleum is fully meeting its tax obligations.

“The implementation of these measures does not mean that we are relaxed. We have set clear objectives in terms of taxation revenue, as a percentage of GDP, to push up to 14.6 percent in 2018.

“I would like to see this rise to 20 percent eventually.

“Put simply, our revenue to GDP needs to improve, and that means maintaining efforts to grow the economy with a more efficient tax system and smarter project agreements.”

Abel was responding to Opposition leader Patrick Pruaitch’s accusation that PNG LNG partners were evading tax.

Mr Abel said the existing taxation structure was set by Pruaitch when he was in government.

“It is good to see the former longtime treasurer suddenly talk about these issues now,” Mr Abel said.

“The taxation arrangements with the PNG-LNG Project were established under the former National Alliance Government.

“These arrangements have seen relatively little tax paid to the government since production began because of a combination of low gas prices and accelerated depreciation.

“Treasury is now developing a fiscal template to establish a reviewed tax framework that does not impose extra burden on resource projects, but provides smoother and more consistent revenue to the Government and is easier to administer.

“In terms of the Internal Revenue Commission, our Government has invested significantly in capacity building there supported by an additional K19 million funding in this year’s budget.”

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Hela governor hits out at LNG project developers

ExxonMobil’s LNG Project cuts a swathe of ‘development’ through Hela province in PNG’s Highlands. Photo: RNZI / Johnny Blades

Governor: “corporate giants bullied PNG politicians into a substandard agreement”

Radio New Zealand | 16 May 2018

The Governor of Papua New Guinea’s Hela province has criticised developers of the LNG gas project over lack of payments to his province.

Philip Undialu said when establishing the project, corporate giants bullied PNG politicians into a substandard agreement.

The Governor said Provincial Governments of the LNG Project area lost nearly US$240 million in Development Levies and Royalties over the last four years.

Mr Undialu said there were hundreds of millions more dollars in royalties which Hela people should have been paid.

He called on lead developer ExxonMobil and its project partner Oil Search to admit this failure and pay Hela what belongs to its people, saying the province desperately needs money after February’s major earthquake.

His comments come after the Oil Search chairman said community discontent and violence around the project was not his company’s fault but a result of the PNG government’s failure to distribute royalties.

“It is pathetic for Chairman of Oil Search to attack the Government after robbing it’s people through a flawed agreement the Somare Government facilitated between 2008 to 2010,” Mr Undialu said.

“It’s by time we take everything back to round table and ascertain who is to be blamed.

“This is a human rights issue and I will not allow my people being deprived of. I need those monies to rebuild infrastructure devastated by the earthquake disaster… so we will rebuild our communities.”

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Exxon LNG is hurting Papua New Guinea economy – new report

Photo: Michael Nagle

Jubilee Australia | 30 April 2018

A new report on the economy of Papua New Guinea shows that despite predictions of a widespread economic boost from the ExxonMobil PNG LNG project, on most economic indicators the economy has actually gone backwards relative to predictions.

Jubilee Australia’s new report ‘Double or Nothing: The Broken Economic Promises of PNG LNG’ is co-authored by Paul Flanagan, director of think tank PNGEconomics. Paul has worked for the Australian government in senior executive positions and with the PNG Treasury where he was Team Leader and Senior Advisor to the SGP Program from February 2011 to August 2013.

“In 2008 Australian economics consultants ACIL-Tasman provided inflated projections of growth in employment, essential services, household income and the broader economy if the PNG LNG project went ahead. This new analysis proves just how misleading these promises were and how PNG has slipped back into the poor policies associated with previous experiences of PNG’s resource curse. Currently, on almost all economic indicators, the people of PNG would have been better off had the project not happened at all,’ said Paul Flanagan.

The aim of this study was to compare the projected benefits for the early years of the PNG LNG project with the actual outcomes.

By building an ‘underlying growth path’ based on how the economy would likely have performed without the PNG LNG project, this study has made the following findings:

  • Despite predictions of a doubling in the size of the economy, the outcome was a gain of only 10% and all of this focused on the largely foreign-owned resource sector itself;
  • Despite predictions of an 84% increase in household incomes, the outcome was a fall of 6%;
  • Despite predictions of a 42% increase in employment, the outcome was a fall of 27%;
  • Despite predictions of an 85% increase in government expenditure to support better education, health, law and order, and infrastructure, the outcome was a fall of 32%; and
  • Despite predictions of a 58% increase in imports, the outcome was a fall of 73%.

These findings are even more extraordinary given that PNG’s exports (due to PNG LNG) have actually exceeded projections (106% relative to the higher figure of 114%).

The PNG LNG pipeline is an Exxon-led project which supplies about 8 million tonnes of LNG a year to Japan, South Korea and China from the gas fields of the Hela region. It is projected to run for 30 years. The project’s partners are Exxon, Oil Search, Santos and the Government of PNG. The Australian government lent AU$500 million of taxpayer’s money to the project.

“Over the next 9-12 months, a final investment decision is expected to be made about whether or not Total, in partnership with ExxonMobil and Oil Search, will start work on the development of the new Elk Antelope gas field in PNG. The new project, known as Papua LNG, has been projected to produce as much as 8.8 million tonnes per year for around 15 years.

“The economic findings of this report, are crucial to understanding the difficulties that large resources project can pose to a small economy like PNG. A decision on new gas projects should be informed by an accurate assessment of the impacts of PNG LNG,” said Dr Luke Fletcher, Executive Director of Jubilee Australia and co-author of the report.

‘‘Exxon and Oil Search should be paying half a billion dollars (AUD) to the PNG government every year, since the gas started to flow in 2014. Instead, they are paying a fraction of this amount, partly because of their use of tax havens in the Netherlands and the Bahamas.

“The fact that the revenues are not flowing at the levels that was predicted is a key reason why ordinary people in PNG are not seeing the sort of economic benefits that were promised to them when this project was first proposed.

The reports also demonstrates the dangers of relying on economic projections based on dodgy economic models that are paid for by the companies. The people of PNG should never let this happen again by insisting on independent and verifiable analysis before approving these sorts of projects concluded Dr Fletcher.

‘Double or Nothing: The Broken Economic Problems of PNG LNG’ is the first of two papers on the PNG-LNG pipeline that has been commissioned by Jubilee Australia. The second paper will discuss the unpaid royalties and development benefits and the escalating violence as a result of the PNG LNG project.

 

BACKGROUND

The PNG LNG pipeline consists of gas wellheads in the Hela Province in the Southern Highlands of PNG, a gas pipeline running from the highlands to just north of Port Moresby and an LNG liquefaction plant. The lead operator is Exxon-Mobil, although there is also significant involvement form the ASX-listed Oil Search.

It is the largest development project (in monetary terms: US$16 billion, further blowing out to US$19 billion) in the history of the Pacific region.

Construction on the project was started in 2010 and completed in 2014, at which point the gas started to flow.

Concerns about the economic non-viability of the project and the dangerous risks of social conflict in the project area were raised by Jubilee Australia in an open letter to Australia’s then Trade Minister Simon Crean in October 2009, two months before the decision was taken.

The letter to Mr Crean predicted that the PNG LNG project would not likely lead to poverty-reducing growth in PNG and would likely entrench a culture of corruption in the country. It argued that there was a serious risk of the project increasing social disruption and violence in the project areas. Finally, it claimed that the project would undermine the aims of Australia’s aid program in PNG.

Efic’s National Interest Account approval process was completed behind closed doors and, despite requests by politicians, journalists and Jubilee, the official advice given to Minister Crean, upon which the loan decision was taken, has never been revealed.

The Export Finance and Insurance Corporation (Efic) is Australia’s export credit agency. Efic provides loans, insurance and other financial services to Australian companies that do business overseas. Historically, around one quarter Efic financing by value goes to companies involved in the resources (mining, oil and gas sector). Projects supported by Efic have been implicated in environmental disasters (Ok Tedi mine, Panguna mine) and human rights abuses (Porgera mine, Panguna mine) and tax evasion (Oyu Tolgoi mine, Mongolia).

Exxon and Oil Search’s Use of Tax Havens

The report shows that since 2014, the project companies should be paying revenues of approximately 1.4 billion Kina (AUD$560 million), and yet they are only paying a fraction of this amount. The lack of revenues flowing are seriously undermining potential positive benefits to the PNG economy. The report argues that these missing revenues are a result of two phenomena: a secret commercial agreement struck between the companies and the government, and ExxonMobil and OilSearch’s use of tax havens in Holland, Delaware and the Bahamas. Indeed, Exxon appears to be using the same techniques to avoid paying taxes from its operations in PNG as, a recent Australian Senate inquiry has heard, it is also using for its operations in Australia.

About Paul Flanagan

Paul Flanagan is a Canberra-based economist and former federal public servant with many years of experience working in the field of aid, development, and economic policy. He worked in a range of policy and program roles in Australia’s overseas aid program from 1986 through to 2002. After this, he held a number of important roles within the Australian Treasury Department including head of the International Finance and Development Division during the Global Financial Crisis from 2008 to 2011. Paul was then seconded to PNG Treasury, where he was Team Leader and Senior Advisor to the SGP Program from February 2011 to August 2013 – a position at the same public service level as Australia’s High Commissioner to PNG. Since 2015, he has been the Director of PNG Economics.

About Dr Luke Fletcher

Dr Luke Fletcher is the Executive Director of the Jubilee Australia Research Centre. He is the principal author of a number of Jubilee’s reports, including Pipe Dreams (2012) about the PNG LNG project and Risky Business (2009) on the activities of Australia’s export credit agency, Efic. Dr FLetcher has a PhD in Politics and International Studies from the University of Cambridge and has been involved in Jubilee in both staff and Board roles since 2005.

About JARC

The Jubilee Australia Research Centre (JARC) engages in research and advocacy to promote economic justice for communities in the Asia-Pacific region and accountability for Australian corporations and government agencies operating there. Jubilee’s work has been quoted in Australia

and international media: The Australian, ABC, The Guardian, Reuters, The Asia Pacific Report. Jubilee has made Parliamentary submissions to a number of government inquiries as well as provided testimony. http://www.jubileeaustralia.org

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Govt Urged To Investigate Cause Of Earthquake

Locals surround a house that was covered by a landslide in the town of Mendi after the February earthquake. Francis Ambrose/via REUTERS

Post Courier | April 9, 2018

The government has been urged to investigate the cause of the recent earthquake that caused destruction and loss of lives in the Highlands provinces of the country.

Sinasina Yongomugl MP Kerenga Kua said during grievance debate in Parliament that the people wanted answers whether the earthquake was natural or induced by exploration of oil and gas in the area.

“The series of the earthquake is of an unprecedented type both in its intensity and in its frequency, it is unprecedented usually you have a one-off earthquake of a certain magnitude and its over, but this one is almost like continuous, it hits off at a very high level and it maintains a high level for many days and even weeks and that is something completely unprecedented and somehow it coincides with the major projects, the gas extraction projects we have on-going in the country,” Mr Kua said

“Within the period of two years of the commencement of the gas project, big earthquake happens, it hits precisely the area where the projects are located, so it raises an obvious question in our minds. Is it mere coincidence an occurence by an act of nature or is there some connectivity to the human activities that is taking place in those localities? It is important for us to know, it is important also for our people to know what the answers are.

“For example if we find that it is induced by human activities then that knowledge alone will help us mitigate future incidence of that nature, and to take evasive action and that is within our powers to do that and if we did not know or if we refuse to know the answer than we will be inviting future further incidence of similar devastating magnitudes, more dense, more injuries, more damage to property and the environment and we will continue to come back to pull our hairs out trying to understand, find answers to do relief and do restoration.”

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