Tag Archives: Total

Total steamrolling Papua LNG project against landowner wishes

Landowners want mapping delayed

The National aka The Loggers Times | January 8, 2018

BAIMURU landowners in Gulf are calling on Papua LNG operator Total SE to defer the social-mapping exercises to allow the landowners to be better represented and informed.
The call is for Total to reschedule the process for Petroleum Retention Licence (PRL) 15 to allow for an awareness programme and more consultations.
Baimuru local level government deputy president Omaro Karara said the communities involved did not know enough of what was going on.
He said the SMLI should be done properly so that the communities can be accurately identified. He was speaking in Port Moresby at the weekend on behalf of the social mapping and landowners identification working committee (SMLIWC) and the PRL 15 landowners.
He said the committee objected to the dates set by the developer because they were told late.
“We would like to defer the activity to March 2018 as government accounts will be opened and we will be in a better position to raise awareness and to mobilise our ward members to organise their people,” Karara said.
“I am informed that as of Friday January 5, 2018, the four villages of Uraru, Wabo, Poroi and Subu had been surveyed but the survey team was prevented from continuing at the fifth village of Eva’ara because the people there wanted more time to learn about what was going on.”
Karara said that if the process was rushed through, there would be conflict.
“We are appealing for more consultation for the safety of the SMLI team and the successful completion of the survey,” he said.
Better communication was needed, Karara said.

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Financial vultures circling PNG LNG expansion

Oil Search is understood to have hosted a number of local project finance bankers to PNG in recent weeks. Rocky Roe

With a Panguna style conflict brewing in Hela over benefits from the first LNG project – a project the Supreme Court has condemned as a fraud – and the Konebada Petroleum Park Authority mired deep in allegations of corruption, how could any reputable financial institution lend money for another LNG project in PNG?

Except, of course, these foreign based financial vultures don’t care a jot about human rights, corruption or violence in PNG – as long as they get their slice of the pie…

Local lenders jostle for mega PNG financing deal

Sarah Thompson Anthony Macdonald Joyce Moullakis | Australian Financial Review | December 3, 2017

Key project debt lenders have been giving their passports and travel insurers a workout as they troop up to Papua New Guinea to get to grips with what could be the region’s biggest financing since the record $US20 billion deal for Ichthys LNG.

While the final configuration of the next stage of LNG expansion in PNG is yet to be settled, those behind the circa $US17 billion project – primarily ExxonMobil, Total and Oil Search – are already well advanced in considering funding.

A large project finance facility is understood to be the favoured option, building on the experience of the $US14 billion funding for the initial PNG LNG project.

Oil Search is understood to have hosted a number of local project finance bankers to PNG in recent weeks, with several testing the lay of the land again last week at a petroleum conference in Port Moresby, which also attracted a host of engineering contractors vying for a piece of the action.

Appetite from the main Australian banks is understood to be strong, although could be tempered by some being close to fully allocated in their exposure to PNG. The country’s sovereign credit rating has slipped a notch since the initial deal amid soft commodity prices, weak governance and ongoing political and security risks.

Still, export credit agencies are again expected to be well in evidence, while the backing of two oil majors and the sheer size of the project count in favour of commercial lender interest. Also supportive is the outperformance of the initial LNG project, and expected robust economics and sturdy customer support for the brownfield expansion despite the oversupply due to plague the LNG market later this decade.

A firmer idea of how the expansion will look, including the split of feedstock supply between the Elk-Antelope, P’nyang and other gas fields, the capacity size and the ownership structure, is expected by early 2018. 

Yet to be figured out is how the cash-strapped PNG government will fund its expected involvement down the track.

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Filed under Financial returns, Human rights, Mine construction, Papua New Guinea

Indonesia and PNG plan joint exploration in border areas

Jakarta Post & Islands Business

Indonesia has agreed to team up with neighboring Papua New Guinea (PNG) to explore potential oil and gas reserves in border areas as the former shifts its oil and gas exploration focus to the eastern part of the archipelago.

Energy and Mineral Resources Minister Jero Wacik said after a meeting with PNG Public Enterprises and State Investment Minister Ben Micah on Tuesday that the two countries would work together by establishing joint operations to explore oil and gas reserves.

Indonesia’s Papua province, located in the eastern part of the nation, shares a 760-kilometer land border with PNG. The two nations currently have a few territorial disputes along the border, in areas with poor infrastructure.

“The border possesses a huge amount of unexplored oil and gas reserves, according to data obtained by our team. Economically, it would be easier to jointly explore these untapped resources,” Jero said in Jakarta.

“This is also important to maintain security along our border.”

Jero did not go into detail on which blocks the two countries planned to develop, but said they would also focus on building more infrastructure in border areas to support the energy and mining partnership.

Separately, Micah said his country also hoped its national petroleum companies would form a joint venture with oil and gas firm PT Pertamina to jointly develop hydrocarbon reserves in the areas.

PNG has two state-owned oil and gas firms, namely National Petroleum Company of Papua New Guinea (NPCP), which focuses on LNG and oil projects, and Petromin PNG Holdings Ltd., which controls the nation’s petroleum and mining assets.

According to Micah, a number of major oil and gas companies, including France’s Total SA and Royal Dutch Shell, were currently exploring oil and gas resources in PNG. US-based ExxonMobil’s latest Asia Pacific liquefied natural gas (LNG) project is in New Guinea.

Pertamina CEO Karen Agustiawan, who was also present at Tuesday’s meeting, said her company would sign a joint study agreement with PNG’s national oil and gas company to develop resources. “We are also interested in entering PNG,” she said.

According to interim upstream watchdog SKKMigas, one of the blocks located near the Indonesia-PNG border is the Warim block, for which American oil and gas firm ConocoPhillips won the contract in 1989.

ConocoPhillips drilled six wells and spent US$98 million on exploration activities from 1990 to 1998 before the government declared the area a protected forest. SKKMigas exploration chief Nugrahani said in a text message on Tuesday that ConocoPhillips had been offered a contract renewal, which would enable the contractor to explore the Warim block for another five years.

“They will be given 15 years to exploit the block should they find profitable hydrocarbon reserves,” she said.

Indonesia, which left the Organization of Petroleum Exporting Countries (OPEC) in 2008, has set its sights on the eastern part of the archipelago for exploration following the maturation of major onshore oil and gas blocks in the western part.

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