Thursday, May 31, 2012

PNG LNG Projects spends K4.3 billion

The PNG LNG Project has to date spent more than K4.3 billion (US$2.1 billion) in PNG to date, according its quarterly environmental and social report released this week, The National reports.
The report said that to date, more than K880 million (US$424 million) had been spent with landowner companies (Lancos) for all project-related activities.
“This quarter, K195 million (US$94 million) was spent with Lancos, representing an increase of 30% from the previous quarter,” the report said.

Welded pipe ready for commencement of lowering along the onshore pipeline route.-Picture courtesy of ESSO HIGHLANDS
“The total in-country project-related spend to date is now over 4.3 billion Kina (almost US$2.1 billion).
“In its two and half years of operation, the Enterprise Centre has supported more than 1,300 local businesses with training and business development programmes.”
The report said the project’s construction was progressing well and in line with the schedule.
“Numerous milestones were achieved during this quarter including: reached 50% of the Komo airfield’s bulk earthworks; completion and delivery of the second drilling rig; completion of the second of four horizontal directional drilling operations; finalisation of the offshore pipeline detailed design; and a record 453 truckloads of equipment moved from Lae to Hides in one month,” it said.
“During this quarter, the upstream infrastructure contractor, who achieved over 10 million work hours lost time incident free, was recognised by the project for excellence in worker involvement in safety, effective subcontractor management and collaboration and teamwork.
“In addition, the Esso Highlands Ltd ground transport workers achieved an outstanding safety record of over 7.5 million km driven by a fleet of more than 125 passenger vehicles with no lost time Incidents
“The project has reached a major workforce development milestone with more than one million hours of training now provided to the project’s workforce, including over 164,000 training hours this quarter alone.
“This quarter, pre-construction surveys were completed for supporting infrastructure for the onshore pipeline.
“The surveys covered areas such as valve stations, drilling platforms and access roads.
“Pre-construction surveys assess areas of ecological interest, weeds and water quality at project worksites, while identifying potential archaeology and cultural heritage sites.
“The only pre-construction survey remaining is on the 24.8km Hides Spineline.”
The report said with construction activity at its peak this year, the project workforce stood at more than 16,200 people.
“The total number of PNG citizens trained to date for both construction and production roles across all project sites reached more than 8, 500,” it said.

Highlights included:

• In January, the first intake of operations and maintenance trainees from the Production Operations Training Centre in Port Moresby left for Nova Scotia, Canada to undergo one-year of advanced skills training.

• At the Juni Construction Training Facility, the first intake of trainees graduated in March with an Australian Quality Training Framework standard Certificate II in General Construction and Civil Construction. Meanwhile, the second intake of 20 trainees commenced their training program in January.

• Jason Maisasa from the PNG Institute of Medical Research (IMR) was selected to undertake the Biomedical Equipment Repair Training program in Dallas, Texas, through MediSend International.

Yandera assets upgraded

Marengo Mining yesterday announced a substantial increase in measured resource at its world-classYandera copper mine in Madang province, one of the largest undeveloped copper projects in the Asia-Pacific, The National reports.
It also announced that the land-based tailings option had been selected.
The report said there were:
• Significant conversion of tonnes to the measured category, increasing confidence in the possible minimum 20 year mine life plan;
• Identified higher grade zones near surface (grading +0.5% copper for initial potential years of production;
• Confirmed large areas of elevated gold and molybdenum grades;
• Improved recoveries for copper, gold and molybdenum. High grade concentrate from the recent metallurgical test work programme; and
• Encouraging results from first hole of the Dirigi exploration programme.
Marengo’s managing director and chief executive officer, Les Emery, said the resource update supported the previously stated goal of achieving a minimum operating life of at least 20 years.

Helicopter with stinger attached for radiometric survey at Yandera.-Picture courtesy of MARENGO MINING
“The measured resource category has increased by over 100% and substantial additional resources have been upgraded from the inferred to indicated category,” he said,
“Drilling activity continues at Yandera, both on further in-fill tasks within the Yandera Central deposit and on nearby exploration targets
“Furthermore, areas of higher grade (+0.5% Cu) have been identified that, with the advantage of topography, can potentially be targeted for the initial years of possible production.”
“The resource estimate incorporates assay results from 465 diamond drill holes totalling 145,335 metres, which were drilled up until the end of 2011.
“The Yandera copper-molybdenum-gold project, reviewed as a part of this 2012 updated resource modeling study, has so far demonstrated and confirmed that this area contains significant amounts of copper mineralisation.
“The tonnages reported, for example above a nominal 0.25% copper lower cut-off, and the coincident contained metal tonnages are significant.”
Regarding tailings, Emery said following a review of the tailings options for the completion of the feasibility study, and discussions with various stakeholders, it had been decided to go forward on the basis of a combined rock waste dump and tailings storage facility.
“The facility will be located in close proximity to the Yandera project and processing areas, with the copper concentrate being transferred to a coastal shipping facility by a small diameter pipeline, which will where possible, follow existing infrastructure corridors to a coastal loading facility,” he said.

Lloyd Hurrel, PNG coffee pioneer, dies at 95

Papua New Guinea’s multi-million kina industry coffee industry has lost one of its pioneers, Lloyd Hurrell, who passed away on Tuesday last week in Australia, The National reports.

Hurrell…chairman of Coffee Marketing Board from 1964-1979

Hurrell, 95, was the pioneer chairman of the then Coffee Marketing Board (CMB) from 1964 to 1979.
“He was the leading coffee planter based in the Wau-Bulolo area and became the most influential and respected man in PNG coffee history,” said Coffee Industry Corporation chief executive officer Navi Anis.
“ The PNG coffee industry will miss a great man who has very much foreseen and paved the way for the multi-million kina industry coffee industry today that affects lives of ordinary Papua New Guineans that farm coffee.”
While serving as chairman of CMB, he contributed immensely in expending coffee plantings and promoting business enterprise for indigenous Papua New Guineans.
He was instrumental in setting up the CMB, then the Coffee Industry Board and also the Coffee Industry Fund (a stabilisation fund) in 1975.
His service to the PNG coffee industry was recognised in June 1969 with the award of the Order of the British Empire (OBE) and in 1980, he was awarded the Companion of the Most Distinguished Order of St Michael and St George (CMG).
A framed photo (A3 size) of him still hangs today in the CIC board room which was named after him.
Lloyd Hurrell was born in Wingham, NSW and educated at Hurlstone Agriculture High School.
He trained as a teacher at the Armidale Teachers College (Australia) and taught in 1937 and 1938.
In 1939 he joined the Department of District Services and Native Affairs as a cadet patrol officer and was posted to Rabaul.
In February 1940 he joined the New Guinea contingent for Australian Armed Forces when World War II broke out and took part in the famous Kokoda Track campaign.
After the war he returned to his pre-war job as patrol officer, looking after Finschhafen, Menyamya and Wau in various periods.
In 1953 he resigned and began his life as a farmer.
He became deputy provisional chairman of the CMB, created in 1963 and after four months, he was elevated to the chairman’s post.
In the 1960 elections he won the New Guinea Coastal seat and became a member of the Legislative Council.

Today's buai pekpek (betelnut shit) in Port Moresby

With all the politics going on, noone seems to care four our city, which is getting filthier and filthier by the day through buai pekpek.
Tell me if you've seen a filthier capital city in the world than Port Moresby?
Outside Mobil Service Station, Waigani

It was good to see BSP Waigani clean today

BSP Waigani was clean as a whistle this morning!

The usual buai sellers outside BSP Waigani weren't there this morning

My favorite drain outside BSP Waigani

Diry walkways


Buai pekpek and rubbish everywhere!

Along Waigani Drive this afternoon

Plastics are choking Port Moresby to death

While politics is the flavour of the month, we are slowly, but surely, being chocked to death on all fronts by an insidious and ubiquitous creature...plastics, as seen in this drain along Wards Road, Hohola, this morning.
 Let them do political campaigning, I'm campaigning to ban plastics starting today and you can help me by emailing me your most-despicable plastic pictures to, which I'll post on my blog, with full photo credits to you.
I don't want my kids to grow up in a plastic (and buai pekpek)-filled environment, and I'm sure that neither do you.
Our politicians won't don't it, our "public servants" at Department of Environment and Conservation won't do it, so let's do it ourselves!

Since noone wants to do it, I'm starting a campaign to ban plastics using my blog, which will feature pictures of the massive damage being done to our environment and health by plastics.
Drain at Hohola

Plastic-filled drain at Hohola

Do plastics rot?

On land as well

After rain, drains are filled with plastics

An ugly sight that must be banned!

Duma clears InterOil status on LNG project


PETROLEUM and Energy Minister William Duma says the government did not direct Chevron to work with InterOil on developing the Gulf LNG project.
He said this yesterday (Wednesday) when asked to comment on a report in The National that Chevron was returning to PNG to partner with InterOil in developing the Gulf LNG project.
Chevron representatives were reported to have met with Treasurer Don Polye on Tuesday.
Duma said he neither met Chevron officials nor had a seen a project proposal from the company.
Chevron Niugini was the company that developed the Kutubu oil fields before selling to Oil Search in 1992.
Polye said Chevron’s comeback to partner to develop the second-largest LNG project in PNG was a positive assurance of investor confidence.
He said it was the government’s decision as per the Gulf LNG Agreement of 2009 that renowned or credible investors partner InterOil.
“I know (Don) Polye only encouraged Cheron to invest here,” Duma said.
“He did not direct or agree to Chevron working with InterOil.
“That is a commercial decision for InterOil.
“Also, in my case as Petroleum Minister, I can only invite and encourage any major oil company, whether it is Chevron, Shell or BP, to invest here and have a partnership with InterOil.”
Duma also said that Chevron could meet with any senior minister.
“I don’t think you should read much into what he (Polye) may or may not have said,” Duma said.

Wednesday, May 30, 2012

Today's buai pekpek (betelnut shit) in Port Moresby

I'm not stepping down from this fight until Port Moresby and PNG starts getting cleaner.
Buai sellers outside Mobil Service Station, Waigani

Area outside BSP Waigani

Drain outside BSP Waigani

Walkway outside BSP Waigani

bemobile bus stop, Waigani

Yuck! The perennial buai pekpek heap along bemobile bus stop, Waigani

Polye: Chevron is returning to PNG

CHEVRON Niugini, one of the United States’ petroleum and gas giants, is returning to PNG to partner with InterOil to develop the second Gulf LNG project, Treasury minister Don Pomb Polye has revealed, The National reports.
He said he met with the representatives of Chevron Niugini yesterday who were here to look at the InterOil Gulf LNG project.
Chevron Niugini was the company that developed Kutubu Oil before selling the project to Oil Search in the 1990s.
Polye said Chevron’s comeback to partner to develop the second largest LNG project in the country was a positive assurance of investor confidence.
He said it was the government’s decision as per the agreement signed between the state and InterOil that renowned or creditable investors would have to be a partner to develop the Gulf LNG project because Interoil was a small company with no experience in the industry.
Therefore, he said the government was not behind any company but wanted a reputable and experienced industry player in the world to develop such a big project and to finish it without delay.
He said there were exciting times ahead for PNG because the currency was appreciating well against the US dollar and the Australian dollar.
He said his prediction of 8.7% GDP has gone up to 9.2%, a strong growth that was healthy for the country.
Polye said as the treasurer, he wanted to see the government manage the economy of the country well and spend funds according to the budget

O'Neill sworn in as PNG prime minister

By  Eoin Blackwell
AAP Papua New Guinea Correspondent
Peter O'Neill has been sworn in as Papua New Guinea's prime minister, ending a three-hour standoff with the acting governor-general, who had refused to conduct the ceremony.

Peter O'Neill
It was the third time Mr O'Neill, 46, has been sworn in as prime minister since he controversially took office from Sir Michael Somare on August 2 last year.
Earlier on Wednesday, acting governor-general Jeffery Nape refused to swear in Mr O'Neill, telling him he needed to study documentation from parliament.
An ally of Mr Nape, deputy speaker Francis Marus, earlier tried to stop Mr O'Neill from nominating for the post.
Mr O'Neill's deputy, Belden Namah, threatened to move a motion of dissent and Mr Marus relented.
Mr O'Neill was elected unopposed on a vote of 56-0.

From the 'shame of PNG' to the 'pride of PNG'

Three days ago, I made a whinge on my blog about the two broken and tattered PNG flags flying in the Boroko Motors Yard, Waigani, under the heading The shame of PNG, which caused an avalanche of angry reaction on Face Book.

The broken and tattered flags three days ago
The matter, I'm pleased to report, was brought to the attention of Boroko Motors management, thanks to Facebook friend Solo Wesley Sua, and two brand-new flags went up a short while ago.

The new flags fly high today
 Solo informed me and I took a walk down and took this picture.

Peter O'Neill voted in as Prime Minister

Parliament just voted 56-0 for Peter O'Neill as Prime Minister.
O'Neill is now being sworn in at Government House by Acting Governor General Jeffrey Nape.

Miracles still happen in Port Moresby

Miracles still happen in Port Moresby?
Well, I've become a believer.
This lady cleaning up the buai pekpek (betelnut shit) and other pipia (litter) this morning outside Mobil Service Station, Waigani, takes my 'Good Citizen of the Day Award' and her picture has been placed here for the world to see.

She puts to shame all you buai shitters, including so called 'educated elite', who continue to paint the town red, at all hours of the day.

New Guinea Gold Corp mining leases and exploration license renewed

New Guinea Gold Corporation (NGG) chairman Ces Iewago yesterday welcomed renewal of its mining leases and exploration licenses at Sinivit in East New Britain, The National reports.
Pursuant to the recommendation of the Mining Advisory Council, Minister for Mining, Byron Chan has now executed formal instruments renewing the company’s expiring mining leases and mining easement (ML 122 and ME 70) and its exploration license (EL 1140).
The ML 122 has been renewed and extended for a further 10 years with a new expiry date of Feb 15, 2022.
ME 70 has been renewed for a period of eight years and now expires on Feb 15, 2020.
The exploration license (EL) has been granted for a further two years as is standard in Papua New Guinea and now expires on May 10, 2013.
“This is a great outcome for New Guinea Gold and reflects well on the relationship that has been fostered with the PNG authorities,” Iewago said.
“The company now has certainty of tenure and a great basis for moving ahead.
“We look forward to working closely with all of our stakeholders to maximise the value and benefits deliverable from the Sinivit mine and the surrounding high-potential exploration acreage.
“The possible addition of the state as a stakeholder in the project would be welcomed and the expression of interest confirms the belief the PNG government has in the potential of the project.”
The renewal of the MLs contained several ministerial conditions, which reinforce the ssState’s and company’s obligations under the applicable legislation.
Two of those conditions are material in nature:
• The company is required to change its processing method within 24 months from the date of approval to a “new and more efficient ore processing system”. This is consistent with the company’s current strategy and plans are underway to accommodate such a change should the definitive feasibility study (DFS) produce a positive economic outcome; and
• That the company enter into discussions with the state’s representatives to assess the state’s participation in the mining lease.

Tuesday, May 29, 2012

Today's buai pekpek (betelnut shit) in Port Moresby

While every second man and his dog are busy campaigning, or involved with campaigning, I continue quitely campaigning on my own for a cleaner and healthier Port Moresby for us all.
Please help develop Port Moresby and Papua New Guinea by not chewing and spitting buai pekpek all over the place, as well as not littering.
It doesn't cost anything and will go a long way.
The perennial pile of buai pekpek outside Mobil Service Station Waigani

These days, we just take buai pekpek and pipia (litter) for granted

Playing their trade outside BSP Waigani

I dream of a Yellow Brick Road

Plastics should be banned before they choke us to death

Right along the pavement

Klinki Steet along Waigani Drive

More pipia

Looks cleaner here

The ladies outside out The National office are among the cleanest buai sellers in Port Moresby that I've seen

Miracles still happen!

Miracles still happen!
I came across this Ela Motors employee cleaning up all the buai pekpek and other shit lying on the walkway along Wards Road, Hohola, this morning.

This fellow gets my good citizen of the day award.
You are a credit to Ela Motors, Port Moresby and PNG.
I wish that BSP Waigani workers could do likewise instead of joining the buai shitters for breakfast, lunch and dinner...

PNG Prime Minister's office declared vacant

By Eoin Blackwell
AAP Papua New Guinea Correspondent

Papua New Guinea has gone from two prime ministers to none, with parliament declaring the office vacant until Wednesday.
Deputy Speaker Francis Marus opened today's special sitting of parliament saying the Supreme Court had declared Sir Michael Somare was the legitimate prime minister.
He added, however, that Sir Michael couldn't serve in the position because he was disqualified from parliament for missing three consecutive sittings.
"This means there is now a vacancy in the office of prime minister," he said.
"I formally declare there to be a vacancy in the office of prime minister.
"Tomorrow, therefore, is when a new prime minister will be appointed - nominations for the office of the prime minister will be first on the agenda for tomorrow."
The surprise move was made shortly after MPs gathered in parliament.
Prime Minister Peter O'Neill was not present, however his deputy, Belden Namah, was.
The Supreme Court last week ruled Sir Michael Somare was the nation's legitimate PM, sparking a series of dramatic events that culminated in O'Neill's government declaring a state of emergency in three provinces.
In December last year, PNG briefly had two prime minister's and two cabinets after the court handed down its first decision.
Comment is being sought from Mr O'Neill.
When asked about Mr Marus's declaration that the prime ministership was vacant, Mr O'Neill's spokesman Daniel Korembao said he knew nothing about it.
"I don't know about that, you'll have to ask the deputy speaker."
Shortly after the declaration, Mr Namah called a caucus meeting in parliament's stateroom and was overheard saying he'd seek legal advice.

Resource benefits remain big challenge for PNG

The key resources issue in PNG today is the challenge in converting benefits into real and tangible improvements in the lives of everyday citizens, according to the PNG Chamber of Mines and Petroleum, The National reports.
This is the industry view on the current Mining Act and the proposed Mining (Amendment) Bill being mooted by North Fly MP Boka Kondra, and most recently Western province Governor Bob Danaya.
Chamber executive officer Greg Anderson said its stance was related to the growing corruption and mismanagement issue which could only be addressed through increased governance and transparency
Greg Anderson
“Changing ownership will not address this problem,” he said,
“It requires a fundamental shift in the way that governments and landowner leaders manage, utilise and distribute resource benefits, and the way they report on this to their respective constituents.
“It all comes down to effective management, transparency and integrity, and a dedication to serve the people.”
The chamber said the current Mining Act:

• Ensured that the development of extractive resources was for the benefit of all citizens, now and in the future;

• Ensured that the state issued exploration and production licences over extractive resources so they were managed in an effective and orderly manner that was recognised internationally and accepted by the investor.

• Ensured security of tenure for the investor; and

• Set the framework for PNG’s benefit sharing system which was one of the most-equitable in the world for mining and petroleum developments.

The chamber said the Mining (Amendment) Act:

• Transferred mineral and petroleum ownership from the state to the landholders;

• Introduced a totally new fiscal and legal system overnight without any consultation with industry or government agencies, including Mineral Resources Development Company which was to be abolished;

• Prevented the state from playing any meaningful role in the process of exploration and development which would become a private arrangement between the developer and the landowners;

• Further eroded the role and value of the state to its people ;

• Would result in loss of security of tenure for the explorer and developer because of the uncertainty of dealing with a tenement system that relies on the stability of landowner groups which makes it impossible for the resource industry to operate;

• Would prevent any developer or investor raising finance in the international markets as the only security the investor could offer would be a contractual agreement with a group of landowners or a landowner company which could be unstable or volatile;

• Created enormous inequalities between the very small number of fortunate landowners who happened by chance to have an extractive resource beneath their land and the rest of the nation; and

• Greatly increased the likelihood of social tensions and landowner disputes because the rewards for the lucky few would be greater.

Danaya: We lost K67 trillion over the last 37 years

Western province governor Dr Bob Danaya has accused the mining and petroleum sectors of siphoning out of the country at least “K67 trillion” over the last 37 years, The National reports.
Danaya has claimed that they (sectors) were responsible for the country’s loss of K67 trillion over that length of time.
Danaya...will work to give ownership of natural resources to landowners

This is the reason why the ownership of minerals, oil and gas should go to the landowners/.
Under the Mining Act, and Oil and Gas Act, all minerals, oil and gas existing on, in or below the surface of any land in PNG are the property of the state.
Danaya said he would change these two laws if his PNG Labour Party formed the government,
He told an emotionally-charged press conference on Sunday that the bill to change both the Mining Act and Oil and Gas Act was overdue, after having failed to pass in the last parliament term through what was known as the Boka Kondra Amendments.
Danaya was flanked by lawyer and East Sepik Regional candidate Alois Jerewai as well as other PNGLP candidates.
Alois Jerewai

In 2009, North Fly MP Boka Kondra gave notice in parliament that he would introduce amendments to the Mining Act and the Oil and Gas Act to vest ownership of minerals and oil and gas in customary landowners.
“This is the bill that should have been passed,” Danaya said.
“I’ll take it back again to parliament and I’ll make sure that it is passed.”
He claimed 80% of earnings from PNG resources were taken by foreign developers with only 20% coming to PNG, bulk of which was “stolen in Waigani”.
“This is what we are trying to change,” Danaya said.
“This is what’s been happening for the last 37 years.
“How many millions have been taken out of Lihir, how many millions have been taken out of Ok Tedi?
“I say 60/40: 60% for landowners and 40% for developers.
“This is not going to scare investors.”
Jerewai said the exploitation of PNG resources was a form of “neo colonialism” imposed on the people of PNG.
“We (PNGLP) will take the bold step to stop this,” he said.
“We have been sub-servient on our own land.”
The PNG Chamber of Mines and Petroleum is strongly against the proposed mining amendment bill, which seeks to transfer mineral and petroleum ownership from the state to the landholders.
The chamber is concerned that transfer of mineral and petroleum ownership from state to landholders would be to the detriment of all concerned, including tangible benefits such as money.
“Papua New Guinea has one of the most-equitable benefit sharing systems in the world for mining and petroleum developments,” chamber executive officer Greg Anderson told a recent media workshop.
“It includes the national government, affected provincial and local level governments, and the impacted communities.”

Monday, May 28, 2012

Today's buai pekpek (betelnut shit) in Port Moresby


Today, apart from the buai pekpek, I'd also like to highlight the problem of plastics, which is literally choing us to death.
Plastics should be banned!
Also today, I had the pleasure of  National Capital District (NCD) Governor Powes Parkop commenting on my Facebook page about the buai pekpek problem in Port Moresby.
"I am open to suggestion and solutions that can work," Parkop said,
"Right now I have not heard or seen any new ideas that is viable so that's why I am sticking to the approach we are implementing: educating and enforcing.
"The other suggestion that has been propsed to me is to release bugs to kill the betel nut palm
". I am tempted to do this but prefer to educate and change attitude instead.
" It wont work overnight but if we continue we will suceed.
"Next stage is to spot fine chewers and spitters.
" I am waiting for workable solutions."

Plastic and other litter in a Hohola drain

Plastic in a Hohola drain

Plastics are choking us to death and should be banned!

A messy Hohola drain

Plastic and rubbish galore at Hohola

Plastic clogs up a drain along Wards Road, Hohola

Buai pekpek and plastics...a sickening combination!

Some looney burnt rubbish in this bin and then toppled it over along Waigani Drive, outside BSP Waigani

BSP Waigani, a lovely building, messed up by buai pekpek in and around its vicinity