Can you profit from this natural gas odd couple?

By Tyler Crowe, The Motley Fool

The strangest of partnerships can be forged in the pursuit of profits.
 Last week we saw the Papua New Guinean government up its stake in local natural gas developer InterOil (NYS: IOC) - but will it be enough support to transform the company into an Asian natural gas giant?

Feeding the Asian energy machine
With so many investors focused on the oil and gas boom in the United States, it's hard to look at an integrated company which only operates in Papua New Guinea and not say: "Who cares?" Well, the largest energy consumer in the world cares.
In 2007, China transitioned from a net producer of natural gas to a net consumer, and today it consumes 1-trillion cubic feet (Tcf) more per year than it's able to produce - and that demand is getting bigger by the day. 
The Chinese government plans to increase the share of natural gas as part of total energy consumption from 4% to 10% by 2020. 
 If it can't find adequate natural gas sources within its own borders, it will import shipments of liquid natural gas (LNG). If a country as close as Papua New Guinea could supply Chinese demand, the rewards for those supplier companies and countries could be huge.
This is where InterOil comes into play; right now it claims to have reserves of 8.59 Tcf of gas and another 0.7 Tcf in condensate form at its Antelope and Elk gas fields.
 Unfortunately, it doesn't have the drilling capacity or the infrastructure in place to transport and export the gas. 
This past summer, rumors abounded about a possible partnership with Royal Dutch Shell (NYS: RDS.B) , but when InterOil wouldn't let Shell take a look at its operations, the talks seemed to wither away.
Where companies don't want to venture, though, it appears the Papua New Guinean government will. Yesterday, the company announced that the Papua New Guinean government will take a 50% stake in both the Elk and Antelope fields. 
With government backing this venture so heavily, InterOil potentially could solve some of the headaches it has faced with drilling, building pipes, and constructing an LNG port.
 If these projects become successful, then InterOil could go head-to-head with ExxonMobil (NYS: XOM) for the title of lead producer in Papua New Guinea.

What a Fool believes
There are still a lot of "ifs" involved in the investing thesis for InterOil: If it can get its pipeline network built out; if it can build its LNG port; if the proven reserves are indeed what the reports claim to be. 
Granted, the prize of being a major supplier to the Chinese and other Asia-Pacific countries could make for some great returns, but the company has made some odd moves regarding the reporting of its proven reserves and its operations.
Investors who think LNG supplies to China will be a big driver for the oil and gas sector might consider two other country and company pairings as well. 
There are two operations in Australia: Conoco Phillips' (NYS: COP) LNG liquefaction facility in Darwin, and Chevron's (NYS: CVX) proposal to build a LNG liquefaction port on Barrow Island. Also, construction is under way to build an LNG liquefaction port in Oregon, which could be used to transport gas from the Green River Basin shale play in Wyoming. Companies like Devon Energy (NYS: DVN) and Ultra Petroleum (NYS: UPL) , which both have large gas plays in the Green River Basin area, could stand to make solid profits from exporting natural gas.
The ways to play the energy space are almost countless, but which is the right one? 
Our analysts at the Motley Fool keep a keen eye out in this space, and they've identified "The Only Energy Stock You'll Ever Need."
 We have made a special report outlying this unique opportunity within the oil and gas space. For your own free copy, click here.

The article Can You Profit From This Natural Gas Odd Couple?

Fiji Prime Minister arrives in PNG

By Vijay Narayan of fiji village

Prime Minister Commodore Voreqe Bainimarama arrived in Port Moresby last night ready for the special Pacific ACP meeting today.

 Commodore Bainimarama was received by Papua New Guinea's Foreign Affairs Minister Rimbink Pato and other government officials at Port Moresby's International Airport.

Prime Minister, Commodore Voreqe Bainimarama

 After a brief meeting Commodore Bainimarama left for the Air Ways Hotel in the vehicle that was used recently to transport the Royal Couple.

 14 Pacific Island leaders will attend the meeting.

 Fiji has not participated at the highest level of the PACP meeting since its suspension from the Pacific Islands Forum in 2009.

 The one day meeting will try to resolve once and for all Fiji's participation in the crucial ACP and EU negotiations.

 At the recent Forum Leaders meeting in Cook Islands, PACP Leaders could not agree on allowing Fiji back to their meeting because of the decision by Leaders in 2009 to suspend Fiji.

 Papua New Guinea offered to host a special session outside the Forum process before the end of the year to discuss Fiji's involvement in purely PACP related activities.

 An invitation to the Port Moresby meeting was conveyed to Fiji's Prime Minister last month when Papua New Guinea Prime Minister, Peter O'Neill made an official visit to Suva.

Explore Papua New Guinea through the lens of a photographer

by Jessica Marati (RSS feed) 

Looking to improve your photography skills while exploring one of the world's most beautiful countries?
Asia Transpacific Journeys recently launched a new photo excursion tour of Papua New Guinea, led by renowned photographer Michele Westmoreland. Called "Papua New Guinea Through The Lens," the 12-day adventure journeys from Port Moresby to Mount Hagen, Kumul, Nondugi, Karawari, Kundiman and Tufi. Highlights of the trip include a cruise along the Sepik River; sea kayaking in coastal Tufi and an excursion to the Wahgi Sing-Sing Festival, which showcases traditional cultural performances from the Wahgi Valley.
Westmoreland's tour will not just be an introduction to Papua New Guinea; it will also be an introduction to photography for both veterans and newbies, with expert advice on lighting, composition and editing.
The package costs $10,695, and the next one kicks off in June 2013. For a sample of what's in store, check out the photo gallery below.

Gallery: Papua New Guinea Through The Lens

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[ Photo Credit: Michele Westmoreland via Asia Transpacific Journeys]

Child health is improving in PNG, and it’s all about the people

Engage

 

By Professor Trevor Duke, Centre for International Child Health, University of Melbourne

I have seen many improvements in child health in Papua New Guinea in the 15 years that I have been working with the health system there, led by committed young paediatricians who have designed and implemented a national plan for child health.

The PNG Paediatric Society, Health Department and University of PNG representatives at the review of the Child Health Plan, September 2012. Photo: Trevor Duke, Centre for International Child Health, University of Melbourne

As a member of the National Child Health Advisory Committee and the Paediatric Society, I was part of a review held in September to assess whether this plan is on track. At that meeting, leaders in child health presented strong evidence of progress in the most challenging of problems.

Immunisation is one of the most cost-effective ways to save lives. For vaccines to reach every district, the Health Department has identified the 20 lowest-performing and most isolated areas and completed a stocktake of childhood immunisations, services and vaccine supplies. AusAID has provided $1 million to implement the Reaching Every District initiative in concert with support from WHO and UNICEF. The Health Department is also partnering with AusAID, WHO and UNICEF to provide mass vaccination across the whole country, against measles and polio. With revitalised services for the hardest to reach, this is already making a difference.
The Haemophilus influenzae vaccine against pneumonia and meningitis was introduced successfully in 2008, and the pneumococcal vaccine is to be introduced in 2014. The Health Department is also active in prevention of pneumonia through improving nutrition (including breastfeeding), reducing indoor air pollution, encouraging hand-washing and early treatment. Treatment programs that introduced oxygen therapy have seen a 35 per cent reduction in death from pneumonia. Pneumonia, diarrhoea and neonatal conditions are the major causes of hospitalisation and child deaths in PNG.
Neonatal health is a continuing priority; while child and infant mortality has fallen in the last decade, neonatal mortality remains static at 28-30 per 1000 live births. As part of an effort to implement better standards of neonatal care, the health department has assessed five hospitals in the Highlands district and established a model for quality district-level services.
Malaria is no longer one of the top three causes of hospital admission for children due to the widespread use of insecticide-treated bed nets. The health department acknowledges that maintaining this program beyond the Global Fund to Fight AIDS, Tuberculosis and Malaria will be a challenge.
With support from the Clinton Health Access Initiative, rural clinics are now HIV testing, counselling and treatment centres. Effective programs to prevent transmission of HIV from parents to children have seen the rate of infection to newborns from mothers who have HIV falling from 30 per cent in 2007 to 15 per cent in 2012, meaning many fewer children are born with HIV.
Tuberculosis treatment through a fixed-dose combination of medications has been introduced nationally; however, access to medication in health centres is currently inadequate. Major policy changes were recommended from this meeting.
Information about common causes of hospital admissions and deaths has improved over the last three years with the introduction of a new reporting system. During this period, 36,000 admissions from 15 hospitals have been documented in detail. This information will assist the Health Department to prioritise clinical and public health programs and to track future progress in child health.
A dedicated and trained health workforce has achieved improvements in child health but more training facilities for child health nurses and community health workers are needed to provide sufficient numbers. AusAID is helping to develop a skilled health workforce. They have provided invaluable support to the University of PNG School of Medicine and Health Sciences for a decade, and are providing scholarships to support the training of nurses, midwives and community health workers.
Many challenges need to be addressed in the coming years. Long-term development depends on national coordination of programs and services for child health, implementing programs and services in all provinces, a good understanding by provincial health officials, and monitoring the scale and quality of implementation. Maternal health is a large determinant of child survival, and there is much to do to reduce maternal deaths and improve family planning. Increased investment in maternal and child health, matching the growing wealth of the country, is an urgent priority. Factors outside the health sector, particularly education, agriculture and environmental health will be major determinants of long-term progress.
Child health in PNG is in good hands. We hope the economic opportunities of the next decade will put much greater resources into improving children’s health, and that a more equitable spread of opportunity will enable parents to better care for their children.

About the author: Professor Trevor Duke
Professor Trevor Duke is the Director of the Centre for International Child Health, University of Melbourne, and Adjunct Professor of Child Health, School of Medicine & Health Sciences, University of PNG.
The Centre for International Child Health receives funding from AusAID through Compass: Women’s and Children’s Health Knowledge Hub.  Compass is a partnership between the Burnet Institute, Menzies School of Health Research and the Centre for International Child Health, University of Melbourne.

Reports regarding deep sea mining campaign in PNG released

 Sub Sea World News

During the past months several reports regarding the deep sea mining campaign in Papua New Guinea were released, Swakopmund Matters informed.
The campaign coordinator for the Australian-based organization “Deep Sea Mining”, Dr. Helen Rosenbaum, has authored a significant report on marine mining in Papua New Guinea’s coastal waters entitled “Out of our Depth – Mining the Ocean Floor in Papua New Guinea”.
In her well researched report she made the following conclusions:
• The mining company cannot be considered to have achieved a social license to operate until the information gaps on environmental and socio-economic impacts are filled and independently endorsed mitigation strategies are developed. In addition, due to the lack of good governance and accountability demonstrated to date, independent monitoring by a team of experts and civil society representatives should continue throughout the life of the project and any subsequent projects.
• Due to the high level of uncertainty associated with deep sea mining (DSM), it is not possible to predict the impacts of any individual DSM project, let alone the cumulative impacts of the many potential DSM projects.
• It is particularly of concern in national waters where governments do not have environmental regulatory systems specific to DSM, or the capacity to enforce regulations and conduct independent monitoring. In international waters, no authority is empowered to ensure the protection and conservation of the biological resources of the seabed.
Another significant report related to DSM in Papua New Guinea was released in November 2012, entitled “Physical Oceanographic Assessment of the Nautilus EIS for the Solwara 1 Project”.
It is authored by an oceanographic expert, Dr. John Luick who has over twenty years of experience in projects related to ocean monitoring, tidal analysis, and hydrodynamic modelling. He has numerous publications and technical reports as well as a wide experience in teaching, consulting, and shipboard observations. Most of his work has been in “marginal seas” similar to the Bismarck Sea, as well as in the deep Pacific Ocean and on the shallower waters of the continental shelf.
The report draws the attention because of the issued fact that “… much of the Environmental Impact Statement (EIS) is simply too general in nature to determine impacts, and many of the mitigations proposed rely upon Environmental Management Plans and procedures that have yet to be developed by Nautilus, and thus the effectiveness of these cannot be judged at present. It is likely that the project would result in severe, prolonged, and perhaps region-wide impacts to a globally rare and poorly understood biological community, and it is clear that the EIS does not adequately assess many of these impacts. Further, the benefits to local people or the economy of PNG seem disproportionately low compared to the scale and risk of the project”.
It added this significant declaration about the Report’s conclusions about the EIS:
“It seriously downplays the risks facing local communities and the marine environment. … The oceanographic aspects of the EIS suffer from a lack of ragout. There are many errors and omissions in the modeling, presentation and analysis of data”.
The Report reviews the oceanographic elements of the EIS for the project in PNG. Its focus is on currents and upwelling that may bring pollutants into contact with local populations and marine species. The risk is with the possibility of upwelling and currents carrying mine-derived metals towards the coastline.
The author of the report Dr. Luick said:
“The physical oceanography and hydrodynamic components of the EIS are second-rate. The shortcomings in these elements of the Solwara 1 EIS are so basic that I could have written the same review 27 years ago while still a student. The modeling is completely unacceptable by scientific standards. The People of PNG deserve better. They should be able to feel confident that the approvals process is open and based on the best available science.”
Dr. Helen Rosenbaum voiced this opinion:
“As such it demands extremely careful attention to scientific detail and transparency in decision making. This new report indicates that both of these elements have been lacking. Important next steps are to make available the full data set behind the EIS”.
In the Foreword to the report it is observed that
“The EIS should provide a clear and rigorous assessment of potential hazards and impacts. It should provide the groundwork for comprehensive risk analysis and the development of mitigation strategies. Most importantly the EIS should have provided a solid basis for the Government of PNG to decide whether to approve this project and if so, under what conditions. Tis review demonstrates that the EIS fails to provide solid ground for informed decision-making”.
In the Overview section of the Report it is stated:
“In summary, there are serious omissions and flaws in information presented in the EIS about surface currents, the speed and direction of currents at different depths, and about tides. These deficiencies mean that several important risks to the marine environment and to local communities cannot be determined. These include the risks of pollution from spills from vessels at the surface, leakage from the riser or discharge pipes, and of upwelling dispersing metals from the mining activity or from the discharge water. The implications of these risks – especially for the people of New Ireland and possibly also East New Britain Province – demands that a thorough and independently verified analysis of currents be conducted as a basis for a comprehensive risk assessment”.
Dr. Luick at the end of the Report concluded:
“The authors of the EIS had access to excellent physical oceanographic data sets and modeling capacity. The EIS should have presented a clear and comprehensive picture of the physical ocean environment as a basis for environmental risk assessment and management. It has failed to do so”.

PNG K2 billion into the red to pay for infrastructure

AAP

Papua New Guinea's treasurer has handed down a K14.55 billion ( $A6.8 billion) budget for 2013, plunging the developing nation more than K2.14 billion ($A1 billion) into the red in a bid to improve the country's failing infrastructure.

Don Polye yesterday announced increased spending for PNG's health, education, infrastructure and law and order sectors, as well as a plan to shift control of some state monies away from the nation's capital, Port Moresby, to provincial governments.

PNG's economy is expected to grow by four per cent over the next year, substantially slower than the 9.2 per cent growth in real gross domestic product (GDP) in 2012.

The deficit announced yesterday amounts to 7.2 per cent of PNG's GDP and is projected to decline to 5.9 per cent in 2014, before falling sharply to 1.6 per cent in 2017.

Mr Polye said the next budget surplus was expected in 2017.

Inflation, which dipped to four per cent year on year in 2012, is expected to climb to eight per cent in 2013, just under 2011 levels.

"The 2013 budget is set against assumptions of a modest acceleration of activity in the global economy in 2013 compared to 2012," Mr Polye told parliament.

"Real growth is expected to slow down ... before rebounding to 5.5 per cent in 2014.

"The slowdown in growth is largely due to the PNG Liquefied Natural Gas project having already reached its peak levels of investment."

Government debt is projected to peak at 74 per cent by 2017, while PNG's debt to GDP ratio will peak at 34.6 per cent in 2014 before dropping to 25.5 per cent by 2017.

The government will also spend K781.27 million ($A365.1 million), up from K683.86 million ($A310.23 million), on improving primary and secondary education, with the vast majority of that money going into boosting teacher's salaries.

Many of PNG's roads, including vital but heavily dilapidated links such as the Highlands Highway, can expect an upgrade and maintenance as well.

PNG's strained police force can also expect a pay rise and some new colleagues, with the government announcing 400 officers are to be hired a year for the next five years.

In a move labelled historic by Mr Polye, the national government will also relinquish some control of state money to give PNG's 22 provinces and districts K5 million ($A2,295,700) and K10 million ($A4,591,400) respectively.

Every province in PNG has one or more district.

"The O'Neill-Dion government believes key services can be better delivered by the parts of government that are closest to its people," Mr Polye said.

Institute of National Affairs director Paul Barker says the plan to hand money to the districts comes with considerable risks.

"It's a large amount of money going out to the local governments, but a lot of them don't have any professional skills," he told AAP.

"As someone in treasury said to me, the national government level has little capacity and the local level is worse.

"A lot of it could end up in Cairns real estate, so there should be some good parties there."

Mr Barker was referring to recent media reports that some PNG politicians and bureaucrats had made substantial property deals in Cairns with public monies.

Legends match boosts PNG NRL bid

By Richard Ewart of ABC

Photo: Veteran rugby league forward Petero Civoniceva was among the Australian Legends who took part in the Port Moresby clash (Dean Lewins: AAP, file photo)

Papua New Guinea's bid for a place in Australia's National Rugby League competition is gathering momentum, with a number of big names in the sport backing PNG's case following the Legends match at the weekend.

A team of former Kumul greats defeated an all-star Australian line up in the Port Moresby clash on Sunday.
The NRL recently said it would not be looking at any expansion of the competition until at least the end of 2014, instead looking to cement the strength and popularity of the current competition.
Brad Tassell, chief executive of the PNG NRL bid team, says several of the Australian players are keen to press Papua New Guinea's case for a place in the Queensland Cup in two years' time.
"It was a real eye-opener for a lot of those guys, as to not only the passion for NRL up here, but what the PNG NRL bid are doing to develop the game up here," he said.
"Guys such as Petero Civoniceva, who's taking up a role with the NRL...is a huge supporter.
"Scott Sattler, as well, it was his first time up here, and he was blown away by the passion and the support - and also by the friendliness and the welcoming attitude that the Papua New Guineans had towards him and the Australians.
"So those sorts of key guys are great to have as ambassadors for our cause."
Mr Tassel says he is confident a PNG side will be playing in the Queensland Cup in 2014, which would be major step on the road to the ultimate goal.
"We did have a full submission that was put forward to the QRL, and that included strong financial support, strong government support and a definite plan for how we wanted to manage entry of a PNG team into the Queensland Cup competition," he said.
"It was received really well, and we'll be having further follow-up discussions with the QRL over the next few months and really pushing and starting to get into place our plans to enter a team in 2014."
Mr Tassel says there's also been a positive response from some NRL clubs in the Queensland and the Australian competition to playing more games in front of a Papua New Guinean crowd.
He says South Sydney and the Broncos have had some discussions about sending teams for pre-season matches against a PNG side.
"Everyone believes that we can have a team from PNG in the future, but what we need to do is make sure that we have the right pathway to put ourselves in a position to be able to bid for a team in the future," he said.

Tuna industry resents European Union accusation

By Natalia Real of Fish Information & Services (FIS)


 A tuna industry delegation from Fiji responded with ire to the media statement released by the European Commissioner Maria Damanaki, warning eight countries that the Commission thinks the sector has not done enough to fight illegal, unreported and unregulated (IUU) fishing.
The group expressed their dissatisfaction during the annual meeting that the Pacific Islands Tuna Industry Association (PITIA) is holding in New Zealand.
A recent independent review by European Union (EU) consultants, GOPA, scored the Marshall Islands, Federated States of Micronesia and Papua New Guinea as low-risk IUU countries, and Kiribati and Fiji as medium-risk.
"We want these countries as partners but we also want to signal to the world that the EU will not tolerate illegal fishing — a criminal activity which undermines the livelihood of fishing communities and depletes fish stocks," Damanaki said.
The Commission’s decision has not entailed any measures affecting trade, but it could. The eight countries have been notified and offered a “reasonable” time to respond and to “rectify” the situation.
The Commission also proposed an action plan for each country and informed that, should the situation not improve, the EU would include them in a blacklist and may take further steps possibly involving trade measures such as a ban on selling fisheries products to the Union. The warning was also addressed to Panama, Belize, Cambodia, Guinea, Sri Lanka, Togo and Vanuatu.
PITIA communicated that it fully supports Fiji’s concerns given the country’s actions and the processes it has implemented, such as its very strict compliance system. Fiji is also in the process of strengthening its monitoring, control and surveillance (MCS) tools, by applying an Offshore Decree to control activities of flag state vessels on the high seas.
The association also highlighted that actions to improve compliance throughout the Western and Central Pacific Ocean are receiving support from the Forum Fisheries Agency (FFA).
The country's Ministry of Fisheries and Forestry (MFF) applies 100 per cent inspection on all vessels landing into Fiji, including foreign ones and applies a vessel monitoring system (VMS) to all its tuna vessels and an observer scheme, according to PITIA.
MFF has already sent two submissions to the EU’s DG Mare informing them of the steps being taken, and is now revising its National Plans to combat illegal, unreported and unregulated fishing (NPOA-IUU) with assistance from Devfish II.
“To say that Fiji does not participate in enough dialogue is rather strange given its efforts to strengthen what is already a very strong monitoring, control and surveillance system,” PITIA stated. “Strange then that other countries that demonstrate higher levels of risk have not been singled out for attention.”

Australia lamb exports to PNG up 58%

By DEANNA LUSH of Farm Online

 

OVERSEAS markets are lapping up Australia’s record cheaper supply of lamb but yardings and slaughter numbers are tipped to plateau to the end of 2012, market analysts say.
Volumes exported during October to the Middle East were up 79 per cent on 2011, China up 69pc, Papua New Guinea up 58pc and the United States up 25pc.

While total exports for October had been 18,574 tonnes shipped weight, the record had been driven by increased supply and cheaper product, reflected in saleyard prices to growers.

Overall, while the volume of Australian lamb exported was up 17pc on 2011, the value of those exports was down 4.3pc.

Rabobank senior animal proteins analyst Sarah Sivyer said exports had been higher because of increased supply in Australia, making our product more affordable on the international market.

“The number of lambs slaughtered in the first 10 months of 2012 is up 32pc on the same period last year. That’s the obvious thing,” Ms Sivyer said.

“The reduction in value (of exports) is being seen strongly in the US, which is Australia’s largest value export destination. From January to August 2012, export volumes have increased 6pc on the same time last year but the value of those exports has decreased 22pc.”

The slight lift in the Eastern States trade lamb indicator last week – up 3c/kg carcase weight to 351c/kg - was because of restockers coming back into the market.

She expected rain last week would see many producers hold onto sheep and lambs if conditions improved.

Meat and Livestock Australia chief economist Tim McRae said stock numbers coming through for slaughter were likely to plateau for the rest of the year.

He did not expect to see large yardings in November and December like there had been in 2011, which was part-seasonal and part-income pressure.

“Recent rain could provide some flexibility to hold on to numbers,” he said. “This year has been so far ahead of last year’s slaughter numbers, we may have seen some of the numbers come in early.”

FarmOnline

Source: http://www.farmonline.com.au

BSP community projects for 2013 kick off in Lae

BSP has commenced its community projects for 2013, with its first ground breaking taking place in Lae, where its three branches will be combining funds, resources and people to undertake a major upgrade to the rundown Corrective Institutions Servicess (CIS Buimo) Clinic. 

The rundown state of the interior of the clinic today. The project will see a complete upgrade of the health facility.

 It’s a sad state of affair at the clinic, which is a major referral clinic to the Angau Memorial Hospital. The clinic provides health services to thousands of people in the surrounding Buimo, Bundi Camp and even Taraka suburbs, apart from the CIS personnel and inmates.

 The ground breaking ceremony for the community project was held last Thursday, November 15,  attended by BSP staff, warders and inmates. 

Lae Branch managers Agnes Mark (commercial) and Quilan Nongi (market) officiate at the groundbreaking with BSP and CIS staff.

 The upgrade will see a full reconstruction on the existing facility, including the replacement of termite infested timber frames, walls, weatherboards and plywoods. Sinks, cupboards and shelves at the examination room and treatment area will also be replaced. 

The project will also see the installation of an air-condition unit, ceiling fans and lights.

 CIS Buimo commander Simon Sobaim applauded BSP for its commitment not only to providing banking services but also reaching out and touching communities in a meaningful way.

 The CIS nursing officers who work at the clinic were thankful that they will now have a conducive environment to deliver much needed health services to the surrounding community.  

 This year, BSP''s three Lae branches combined and delivered a significant upgrade to the only radio therapy and oncology clinic in the country at the Angau Memorial Hospital.

 BSP’s Lae branch staff who will devote their time during weekends to assist with the project are proud to work with the communities and give back in a worthy way.

 "As the only home grown bank in Papua New Guinea, such is our commitment, as we truly understand that we have the opportunity to make a meaningful and lasting difference where it matters most," said Group CEO Ian B Clyne.

 "BSP’s commitment to give back to local communities is through a number of initiatives at corporate as well as branch level focusing on health, education, sports and the environment.

 "BSP community projects commenced in 2009, and since then has invested back into communities in access of K2 million in which the bank operates in PNG. 

"Our offshore branches, Fiji and Solomon Islands also deliver community projects in areas they operate.

 "This was typically in the form of school equipment provision and classroom refurbishments, hospital and aid post repairs, water tank installations, market and public area clean-ups, and support of equipment and funding of various charities." 

Where biodiversity abounds: Hunting for new species in PNG

Survey of the canopy with the "arboglisseur" - (La Planète Revisitée)

By Laurence Caramel

LE MONDE /Worldcrunch

MADANG - Armed with thousands of test tubes, flasks, microscopes, mouth aspirators, gillnets and compressors, Olivier Pascal and Philippe Bouchet have arrived in Madang, their departure point for their new expedition in Papua New Guinea, which started last month.
The botanist for an NGO, Pro-Natura International, and the zoologist specializing in mollusks at the National Museum of Natural History in Paris are old accomplices. They even have special nicknames for each other: "Muddy old boot" for the former and "Sea-shells" for the latter. Since 2006, they have led the biggest known research team in recent years. "Our Planet Reviewed" has taken them from Santo Island and Vanuatu to Mozambique and Madagascar in 2009 and 2010.
After two years of preparation, they are finally ready to embark on a new chapter in their inventory of the world's biodiversity, visiting one of the most richly diverse areas, but also one of the least traveled, in the world. The expedition will last three months and will include almost 200 scientists of 21 different nationalities.
The island of Papua New Guinea presents a double attraction for the scientists. It is situated at the heart of the Coral Triangle, which stretches out between Taiwan, the Philippines, the Malaysian peninsula and Indonesia. This is the world’s most bio-diverse marine environment, where two-thirds of the world's coral reefs are to be found.
On land, the potential is just as appealing. The eastern half of the island, shared with Indonesia, possesses the third-largest expanse of intact tropical rainforest, after the Amazonian basin and the Congo. The team will be based in Madang province, where the rainforest extends from the coastal plains to the edge of the slopes of Mount Wilhelm, reaching up to around 3,800 meters.
"Each new expedition is bound to lead us to the discovery of new species," predicts Philippe Bouchet, who will lead the marine mission. This is especially true as the mission will focus on species that have until now been neglected by zoologists: mollusks, crustaceans, polychaeta and algae.
"Mollusks and crustaceans represent around half of marine species; there are eight times more of them than there are fish," says Philippe Bouchet. "However, the scientific community suffers from the same problem as the general public. They're only interested in certain species, such as large mammals."
There is also another reason for this professional snub. It takes a considerable amount of time to track down, classify, and sample these small organisms, rarely bigger than a few centimeters. It can take years to declare a new species.

Oceanic ships and super-sleuths
Discoveries are made almost unintentionally; however, they do follow a precise structure. Philippe Bouchet, staying with his team at the Divine Word University campus, painstakingly goes through minute details with his team each night before dinner.
"On an expedition of this magnitude and at this level of complexity, I have to devote 100% of my time to management. You have to find the right balance between running a tight ship and one that allows researchers to fully express their creativity," admits the museum researcher, putting a dampener on the feeling of adventure that goes with these large expeditions.
If the weather permits it, around 20 divers will go down 30 meters each day to do preliminary sampling, armed with breathing apparatus, light traps and brushing equipment, etc. There is also the Alis, the oceanographic ship being supplied by the Research Institute for Development (IRD), another partner of the expedition, with its trawling net that can reach down to 1,200 meters.
For more delicate operations, the leader of the mission is counting on a few super-sleuths: divers to whom he has entrusted the targeted sampling, and a Filipino fisherman whom they met in 2004, who is second to none when it comes to maneuvering a gillnet around awkward or sloping areas on the ocean floor.
All samples will be sent to the laboratory, on campus, to be studied, sorted, photographed and packaged, then given to the top specialists after the expedition.
As well as this, artificial reefs (around 30 in total) will be installed in the lagoon of Madang after the best sites have been identified by satellite images. They will be taken out again after one year, the time it takes for them to become colonized by various species.

No time to relax or build shelters
On the humid slopes of Mount Wilhelm, surrounded by rich vegetation, Olivier Pascal is preparing for a completely different voyage. He is no stranger to extreme conditions, after his first escapades during the late 1980s in the Amazon. "It'll be bad if it rains," he admits.
Earlier, in May, they had searched for ideal locations, which has allowed them to signpost each stage of the climb. "As soon as we arrive, we have to follow the precise, pre-established scientific protocol." There are eight sites, each divided into five patches of 20m2, and prepared with traps. The sites range from 200m above sea level to 3,700m above sea level.
The researchers will spend three days at each site, and one day hiking to reach the next one. Therefore, there will not be much time to relax or even build shelters. Tarpaulin sheeting will have to do. "You have to be in really good shape, even if we have a doctor with us," says Olivier Pascal.
The scientists will concentrate on insects, which form by far the largest group, on land, of neglected biodiversity, and which represent this expedition’s main area of interest. Unlike Philippe Bouchet, the botanist can also work with a strong team of local researchers.
For 15 years, Vojtech Novotny, a world-renowned Czech specialist in tropical ecology, has been managing Binatang Research Center in Madang. He coordinated the biggest study ever done on the distribution of species in a tropical, low-altitude forest.
The results, published in 2010, have provided one of the most recent evaluations of the world's biodiversity. Olivier Pascal is hoping to prolong the exploration on the peak of Mount Wilhelm with the help of  Papua New Guinean parataxonomists trained by Novotny.
The final objective for the pair is to come up with a new estimate of the number of species currently living on Earth. "For me, that's where the real adventure begins," Philippe Bouchet confides. He is already thinking about the years in the laboratory to come, after these "three months on the ground."

PNG conditionally approves InterOil LNG project

By Rick Wilkinson
Oil & Gas Journal Correspondent 

 

The Papua New Guinea government cabinet has approved InterOil Corp.’s Gulf LNG project to be supplied by the Elk-Antelope onshore gas fields with conditions including the 50-50 split of the development between the government and InterOil.
Prime Minister Peter O’Neill said in a statement that Papua New Guinea’s National Executive Council had approved the 50-50 project in which the government would acquire an additional 27.5% stake over and above its legal 22.5% entitlement, which is managed by state nominee Petromin.
The acquisition would give the government a combined half interest in the Elk-Antelope assets. It is probable that some of this equity would be managed for the benefit of capital-lacking landowners.
Elk and Antelope are carbonate reservoirs, technically part of the same field, but separated by a major fault.
O’Neill alluded to the fact that the terms in which the State will acquire the additional equity still need to be agreed.
O’Neill added that the cabinet had also flagged the possibility of two separate development paths. “Cabinet approved that the project may be commercialised equally and simultaneously on a 50-50 basis between the state and InterOil based on the available saleable gas, using two separate processing facilities,” he said.
He said an internationally recognised LNG operator should operate the upstream facilities, meaning that the government still wants a major player to buy an operating stake in Gulf LNG.
The announcement also alluded to the fact that Petroleum and Energy Minister William Duma last year criticized the development for straying from the original project agreement struck in 2009. Cabinet has now approved the “conditional withdrawal” of its notice to terminate the 2009 project agreement. This is subject to the parties agreeing to certain conditions, including “developing saleable gas on a 50-50 basis.”
A Ministerial Gas Committee headed by Minister Duma has been formed, while a separate bureaucratic negotiation team has also been established with representation from the petroleum department, treasury, the justice department and Petromin.
These teams have been charged with fast-tracking the negotiations leading to commercialisation of the country’s second LNG project (after the ExxonMobil-operated PNG-LNG scheme).
A number of questions still remain.
The original 2009 agreement was based on a one-plant project of 7.6 million tonnes/year of LNG. The exact capacities of two LNG plants mooted in the new agreement have not been specified publicly, but it is likely that they would have a capacity of about 4 million tpy each.
Ongoing negotiations will also decide what form the plants will take—conventional, modular, or floating LNG. There also will have to be input from the company or group of companies acquiring an operating stake in Gulf LNG.
Another question is how the government will finance the acquisition of an additional 27.5% stake.