Is this just a lull before social turmoil?- Alfredo Hernandez 10.12.09

From John Fowke

What Alfredo and other less-outspoken commentators have said recently regarding a lack of interest in individual enterprise within PNG society-  which they say has led to a vacuum filled by enterprising Asians- -is something to be considered, although it is not entirely correct.It is wrong, in fact it is insulting, to ascribe sign of a growing unrest at the recent Asian invasion into many areas of business in PNG, to simple envy and  jealousy on the part of PNG'ians.

As for the presence of Philippine nationals as such in PNG, most of these, beginning in the 1970's, have been professional and administrative and trades-connected migrants who have come as workers rather than business-people. I think this fact is recognised although Philippinos in general, like all foreigners who stay for long in PNG, are still new colonials in the eyes of most citizens.

 May I recommend to Alfredo and to his countrymen who are of a similar general opinion that they look back upon the history of their own nation?

 The small, semi-tribal kingdoms, rajahnates, and principalities which ruled the islands of that great Asian archipelago, today the independant Republic of Philippines, were free in the same measure as pre-colonial PNG was free up until 125 years ago. These small Philippine kingdoms conducted their own affairs and benefitted for centuries in terms of a sporadic but important contact with seaborne traders from China, Vietnam and other neighbouring kingdoms.

 Then came the Spanish explorers, and the expedition led by Legaspi in 1564 which established the foothold from which dominance and full control by Spain over the whole archipelago arose. Spain ruled, and controlled not only the civil affairs and the laws, but also the trade of this rich colony for more than 300 years. Spain was displaced  by the United States of America which granted full independence to the people of the Philippines in 1946, only 30 years befor PNG became an independant nation.

 Don't tell us, please, Alfredo, that your fathers and your uncles and grandparents, to say nothing of their ancestors right back to 1565, did not chafe under the yoke of authoritarian colonial control and colonial exploitation? Dont tell us that even today,  Phillipine nationals dont have any negative feelings about the heavy presence of American multinational companies and those less-desirable effects emanating from the US military presence in your country? Under Aguinaldo in the 1890's your people fought a vicious and prolonged guerilla war against the colonial forces of the US, until, at the cost of a great many lives on both sides, the Americans again established control over your country. Dont tell us that the Philippinos of that generation together with their descendants held no animosity toward the Americans, who still have quite a large influence on the commerce and the politcs of your country. Think about this and then consider the feelings of Papua New Guineans, at one moment made free of foreign domination, and so soon after independence, once again heavily colonized in terms of influence and takeup of business opportunities by aliens. Is there any wonder that they feel aggrieved? 

 

John Fowke

Pacific Storms Brisbane 2009 (please click to enlarge)

Is this just a lull before a social turmoil?

By ALFREDO P. HERNANDEZ    

 

Thursday, 10 December 2009 10:07 

 

 WHILE Papua New Guineans are looking forward to Christmas Day, Asians in this blessed country are looking beyond this red letter date, and with so much apprehensions, anxieties and dread.

Taking the threat seriously, they are growingly concerned about the violent prospects of December 31, New Year’s Eve. This is the day when all Asian-operated small businesses are supposed to cease operations once and for all, or else they go up in smoke in the fashion of burning pyrotechnics at a Christmas carnival.

The “cease-your-business-operation” order has been issued by a group of faceless and nameless anarchic individuals who are spearheading a hate campaign against Asians in PNG.

In particular, the targets are those small entrepreneurs who run successful businesses – retail stores, shops, grocery, among others -- in urban centers across the country.

Among Asians, it is only the Chinese, especially the old-timers, who have persevered in putting up such enterprises and succeeded. Other Asian people – Malaysians, Indonesians, Indians, Pakistanis, Filipinos, Singaporeans, Japanese, Vietnamese and Thais, among others – came to this country as professionals and technical people; they are not here to work as store owners or storekeepers.

Unfortunately, the generic tag that expatriates carry conveniently lumps them together with the Chinese in the same rubbish bag. All being Asians, they have also become the target of racial hatred and maybe later – racial violence.

This has drawn a sharp reaction from the Philippine Ambassador to PNG, Madam Shirley Ho-Vicario, who resented media reports that had identified an Asian nationality as simply “Asian” and not as one where he comes from.

 She has wished that the country’s newspapers, radio and television would be more specific in their reference to such person who committed some transgression, like for instance, “Filipino”, “Malaysian”, “Chinese”, thus sparing other nationalities of possible backlash which could be physical harm or negative sentiments arising from the news report, instead of just identifying him in the generic.

These hate campaigners are claiming to have the support from various sectors of the society – including a Parliamentary bi-partisan committee investigating the anti-Asian May riot and various civil organizations.

However, this is a claim that has been shoved under layers of questions by thinking Papua New Guinean public because of the means with which they push their silly, stupid and out-of-this-world cause and agenda.

Sensible members of the Papua New Guinean society readily admit that whatever omissions that have ignited such hatred against Asians are of their own making and that of the very government of the day.

This is one anomaly that goes back to Day One of their nationhood but it is only now that they are realizing this: it is a social cancer that has spread wide and far. They were the ones who put those politicians into office, believing that they will do their jobs of making better the lives of the ordinary people.

But as it is, the country’s elected leaders have failed and this is now being attested by a million of people or so who have been marginalized and economically deprived, and are now being used as pawns by the city anarchists to drive away Asians out of this country.

Asians – the Chinese for one -- are just here to make a living because Papua New Guineans gave them the opportunity to do so and they are giving back in return in the form of a lively local economy, helped by the many little stores and shops they have put up.

And yet, these hate peddlers are ready to cause anarchy all over the city on December 31 by burning such innocent, productive establishments.

For more than eight months now, they have been crawling all over the villages and settlements and poisoning the minds of unschooled people that these Asians are the cause of their economic miseries; that they are robbing them of their supposed livelihoods, and depriving them of jobs that they should have right now but are instead in the hands of these people.

Of course, the members of the civil society who got sense in their heads believe otherwise, and they are in great number. Who would want to see their community, especially Port Moresby, go up in smoke on New Year’s Eve, except for these nameless, faceless animals?

These law-abiding citizens believe that should Asians opt to flee the country, there could be more ensuing problems, not only for the entire peace-loving citizenry but for the country’s economy as well.

If the Chinese close shop, who could we expect to takeover from them … the grassroots? I don’t think so.

After the Chinese of Honiara fled the country following the burning of the city in 2006 which ravaged their business houses, the enterprises that they left behind had never recovered, nearly killing the local economy.

It was only when they began coming back to Honiara two years later that the very same businesses have been resurrected. It goes to show that the locals who drove them away were incapable of putting up similar enterprises and running them with success. This scenario could surely be repeated in PNG.

Up to this time, the country’s police hierarchy is silent about the New Year’s Eve threat. Or maybe, they re just waiting and looking, but then I would like to give them the benefit of doubts.

The top echelons must have ignored it and dismissed it as pure “nonsense”. Or it could also be possible that like many Papua New Guineans, they are clueless as to who are causing this social intrigue.

When the first carnage erupted last May, beginning with a public rally attended by people who had nothing to do better in life, and then ending up in rioting and looting of several Asian-operated shops and trade stores, police were caught with their pants down.

Now they should know better.

If Asian expatriates are being gnawed at by insecurity amidst the advent of the Yuletide season culminating on New Year’s Eve, their respective ambassadors are even more worried and are having sleepless nights over this, so to speak.

On both personal and official levels of communications, these envoys have expressed worries to one another over what could happen 21 days from now -- to them and to their respective wards.

Asians in PNG are overseen by their respective embassies whose ambassadors are the highest government officials of their country holding office here. Their job is to look after their compatriots’ welfare, seeing to it that each citizen are obeying the laws of the host country and are free from harm or any form of threats.

That’s why the anarchists’ emailed threat to Asian businesses has become a great cause of concern among the members of the 21-nation Diplomatic Corps in Port Moresby.

During its monthly meeting held on December 4, the envoys from Asia raised concerns over the safety of their respective citizens here. One question they had asked pertained to the accuracy of the information arising from the threat that has been circulated:

“Is it true? Are the police aware of this? Is the Government aware of this? If so, what do they intend to do to prevent such carnage from actually taking place?”

“What does the Government intend to do to protect our citizens?”

Such questions obviously indicate the level of trust that the diplomatic community places on the local authorities, particularly the police establishment. Their confidence is somewhat being undermined by the fact that the perceived threat persists up to the present time, which signals to high heavens that no drastic move is being taken to mitigate the situation, at least on the psychological aspect of the issue.

Most of all, it also questions the police capability to actually gather first-hand intelligence as to what level of intensity such impending anarchy has progressed so far.

Do the police have assets among the grassroots to accurately pinpoint and identify individuals who are in direct cahoots with the brains of the anti-Asian movement? There could be more questions to ask.

Although the hate campaign is targeting Asians, one European ambassador has nevertheless expressed grave anxiety, saying it has now become a European concern and not just Asian’s. “While we are Europeans, we are very much concerned because we are a brother of yours here in PNG …”

Forging a common stand, the members of the Diplomatic Corps have agreed to call on relevant senior Government officials and present their concerns.

But with the brouhaha and excitement generated by green-lighting the US$15 billion PNG LNG project, the biggest resource development ever undertaken in PNG, to push ahead, will those relevant Government officials be responsibly involved enough to act?

Or is it Christmas as usual and that there’s no need to act in haste?

I would like to keep my fingers crossed, anyway.

Merry Christmas!

Email the writer: jarahdz500@online.net.pg   

alfredophernandez@thenational.com.pg   

To see the original web posting, please visit: http://www.batasmauricio.com/index.php?option=com_content&view=article&id=983:is-this-just-a-lull-before-a-social-turmoil&catid=40:letters-from-port-moresby&Itemid=117

To see previous articles, please visit: http://www.batasmauricio.com/index.php?option=com_content&view=category&id=40:letters-from-port-moresby&layout=blog&Itemid=117

Papua New Guinea LNG project given green light

By AAP

 

A $US15 billion ($A16.5 billion) liquefied natural gas project in Papua New Guinea has been approved by its operator and co-venturers.

The PNG liquefied natural gas project is a joint venture led by Esso Highlands Ltd, a subsidiary of energy giant ExxonMobil, with several partners.

Australian listed companies Oil Search and Santos are both part of the deal, as well as Japan's Nippon Oil, the PNG government's Eda Oil and a trustee to represent landowners affected by the project.

Managing director of Esso Highlands Peter Graham said in a statement that the project had been approved pending completion of sales and purchase agreements with LNG buyers and the finalisation of finance arrangements.

These were expected to be concluded by early 2010, he said.

"With this decision to proceed, the Papua New Guinea government and landowner nominees have joined the project as equity participants," Mr Graham said.

"We are pleased to achieve the important milestone of securing the approval of the co-venturers to move ahead with our project," he said.

News the project would be given the go-ahead was made at a ceremony in PNG's capital Port Moresby attended by the nation's Prime Minister, Sir Michael Somare.

"ExxonMobil and our other private sector development partners have shown significant confidence in our nation," Sir Michael said, according to a statement issued by ExxonMobil.

"Cooperation between the public and private sectors will create value for the Papua New Guinea society as a whole and grow our economy in the future," he said.

The project participants will now continue to work with the PNG government and lenders to secure all the necessary environmental and social program approvals, the statement said.

The massive project is tipped to generate 6.6 million tonnes of LNG per annum for about 30 years.

It has hit some hurdles, with some local landowners unhappy at their representation during negotiations.

The PNG LNG project will develop gas fields in PNG's highlands and Western Province and transport the gas via pipeline to an LNG facility near Port Moresby for shipment overseas.

Analysts had been expecting the deal to be given a final approval from the project's partners, with expectations boosted after two big sales deals were recently signed.

In a separate statement Oil Search managing director Peter Botten described the move as "historic" for both his company and for PNG.

"PNG LNG represents a long term legacy project which will add over 19 million barrels of oil equivalent to our annual production and result in approximately a nine-fold increase in our booked oil and gas reserves," he said.

"The development of this project represents an opportunity to fundamentally change the outlook of the PNG economy and its people."

Mr Botten said that when the project commences production, PNG's gross domestic product would more than double and export revenues would triple.

Santos said the approval of the project was the "next major step in its transformational LNG growth strategy".

"PNG LNG will provide Santos with long-term underpinning production and cash flows over the project production period," Santos said in a statement.

Santos chief David Knox said the project would transform Santos' production and earnings profil when it came online in 2014.

The company's share of project production is expected to be about nine million barrels of oil equivalent (mmboe) per annum at plateau including LNG and associated liquids.

"I appreciate the strong commitment of the government of Papua New Guinea, the PNG landowners and our operator Exxon to make this project a reality," Mr Knox said.

At 1515 AEDT shares in Santos were trading down eight cents, at $14.67 while shares in Oil Search were down nine cents, at $5.81.

 

 

Today is International Anti-Corruption Day

Message from United

Nations Secretary General

The theme of this year’s observance of the International Anti-Corruption Day -- “don’t let corruption kill development” – highlights one of the biggest impediments to the world’s efforts to reach the Millennium Development Goals.

When public money is stolen for private gain, it means fewer resources to build schools, hospitals, roads and water treatment facilities. When foreign aid is diverted into private bank accounts, major infrastructure projects come to a halt. Corruption enables fake or substandard medicines to be dumped on the market, and hazardous waste to be dumped in landfill sites and in oceans. The vulnerable suffer first and worst.

But corruption is not some vast impersonal force. It is the result of personal decisions, most often motivated by greed.

Development is not the only casualty. Corruption steals elections. It undermines the rule of law. And it can jeopardize security. As we have seen over the last year, it can also have a serious impact on the international financial system.

Fortunately, there is a way to fight back. The United Nations Convention against Corruption is the world’s strongest legal instrument to build integrity and fight corruption. A new mechanism decided on at the recent Conference of States Parties in Doha means that, from now on, states will be judged by the actions they take to fight corruption, not just the promises they make.

The private sector should not lag behind governments. Businesses must also prevent corruption within their ranks, and keep bribery out of tendering and procurement processes. I urge the private sector to adopt anti-corruption measures in line with the UN Convention. Companies -- particularly those that subscribe to the 10^th principle of the Global Compact, to work against corruption -- should pledge not to cheat and should open themselves up to peer review to ensure that everyone is playing by the same rules.

We all have a part to play. On International Corruption Day 2009, I urge all people to join the UN anti-corruption campaign at http://www.yournocounts.org/. And I encourage everyone to make a pledge: never to offer or accept a bribe. Live by that motto, and the world will be a more honest place – and we will increase the chances of reaching the Millennium Development Goals.

TEPCO and PNG LNG finalise LNG Sales and Purchase Agreement

• Important Project Milestone with Key Asian LNG buyer

 

Port Moresby, Papua New Guinea, December 7, 2009 – Tokyo Electric Power Company Incorporated (TEPCO) and Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation and operator of the Papua New Guinea Liquefied Natural Gas (PNG LNG) Project, today announced that TEPCO and the project participants have entered into a binding sales and purchase agreement for the long-term sale and purchase of LNG totalling approximately 1.8 million tonnes per annum.

The agreement is effective for a 20-year period.

“This agreement is the foundation of a new relationship bringing together a premier Japanese LNG customer and an important new LNG supplier. It will provide important and complementary benefits to all parties,” said Ron Billings, vice president, LNG, ExxonMobil Gas & Power Marketing Company. “This is yet another key milestone in the project’s schedule.”

TEPCO is the largest power utility company in Japan serving 28 million customers and one of the world largest LNG importers with 20 million tonnes imports in 2008.

The PNG LNG Project is an integrated development which includes gas production and processing facilities, onshore pipelines and offshore pipelines and LNG plant facilities.

Participating interests are ExxonMobil (through various affiliates, including Esso Highlands Limited as Operator) 41.5%, Oil Search 34.0%, Santos 17.7%, Nippon Oil 5.4%, Mineral

Resources Development Company 1.2 % and Petromin PNG Holdings Limited 0.2%.

(Participation will change when the PNG State nominees join as equity participants at a later date).

 

Media Contact: Miles Shaw

Phone: (675) 322-2133

Email: miles.j.shaw@exxonmobil.com

Esso Highlands Ltd

Level 5, Credit Haus

Cuthbertson Street

Port Moresby. PNG

+675 322 2111 Telephone

Global call for tourism ambassadors for Papua New Guinea

By Malum Nalu and Barry Greville-Eyres (self appointed PNG Tourism Ambassadors)

This home-grown marketing initiative unveiling PNG’s unique tourism attributes and experiences as The Last Wild Frontier with a Million Different Journeys will make extensive use of electronic communication and media (linked and interconnected email, websites, social networks and blogs) in order to select PNG’s inaugural cohort of global Tourism Ambassadors. It’s an opportunity to venture into relatively uncharted terrain for PNG - experimenting with modern information and communication technologies (ICT) and how they can combine to provide low cost yet highly effective product development and marketing within an emerging tourism industry. The intention is to use existing ICT infrastructure thus reducing development costs.

The initiative will require sector-wide involvement (including traditional and non-traditional players) since tourism has the very real potential to touch the lives of all communities – rural and urban alike. De-mystifying tourism as socio-cultural and bio-physical resource-based growth and development opportunity, primarily for its Papua New Guinean custodians, is central to the initiative. This will require significant tourism awareness and education, enabling PNG women and men to engage meaningfully in the industry. 

Narrative Description:

Highly accomplished individuals (up to a maximum of 12) will be invited to express an interest on-line (through an existing website or an appropriate link) for the unique privilege to become one of an elite group of Tourism Ambassadors representing and promoting PNG for a period of up to three years (first cycle followed by a new cohort thereafter).

Eligibility Criteria:

·       Internationally acclaimed expert and personality with an interest and passion in developing and marketing Papua New Guinea as The Last WILD Frontier offering a million different journeys  ....

·       Willingness to travel to PNG annually (for three consecutive years) for up to 14 days at a time within which the expert will explore and indulge, primarily but not exclusively, in his/her area of expertise within the country;

·       Promote his/her in-country experiences widely (using electronic and print media as well as ICT including personal websites/blogs);

·       Aspiring Ambassadors will have to align themselves with a range of tourism market segments which will include:

§         Community-based tourism;

§         Eco-tourism;

§         Cultural tourism;

§         Qua water-based tourism;

§         Terrestrial tourism;

§         Extreme – adventure tourism;

§         Science and history tourism;

§         Culinary tourism (food & drink);

§         Tourism economics;

§         Tourism education; and

§         Others??? 

Costs:

A cost sharing arrangement where various tourism stakeholders, will in return for exposure, marketing and promotions received, provide a range of in-kind services in return ie Air Nuigini, Coral Seas and other resort hotels, packages provided by specialist tour operators etc.....

Purpose of initiative:

·        Create a uniquely branded marketing & communications ‘strategy’ to promote PNG, specifically its relatively pristine and mystical tourism features & attributes in a responsible manner;

·        Offset the PNG resource boom and its associated developmental challenges with responsible and measured tourism development in PNG that will directly contribute to local economic development and prosperity; 

·        Research, teaching and learning – thorough documentation of experiences & successes/failures; 

·        Explore the reach, impact and utility of contemporary information and communication technology in a developing country such as PNG;

·        Demonstrate that strategic partnerships and alliances can and do work;

·        Build capacity, a national brand – identity - pride and confidence  - we can do this together....

·        Attach a value, appreciation and awe of being able to offer an experience so unique, so special unparalleled elsewhere;

·        Get product information out there.....

·        Internationalise PNG ... ... PNG no longer the last Australian outpost ... PNG has a distinct heritage, brand, products, experiences  - also work on the mis(perception) that PNG is unsafe – perhaps you can be more diplomatic about this....;

·        Develop and vibrant and viable tourism industry linking development that is environmental sustainable – friendly

·        Integrated economic development – agro tourism etc......

·        Market some of PNG’s unique attributes – that differentiate PNG from any other destinations in the world – PNG’s people, culture, agriculture – Highland – coastal cultures and environments.... volcanoes, geological instability ...the last WILD Frontier ...etc....

Picture this.....  Jamie Oliver cooking up a storm on a Kavieng Beach ...... doing the same in the mountains of Simbu ....... 

 

Leilani of Kavieng

Students at the National Fisheries College in Kavieng, New Ireland province, have a lot of fun while learning on college vessel, ftv Leilani, which takes them out to sea.

Principal Hugh Walton said Leilani was the only boat currently owned and operated by the NFC.

“It’s a training vessel,” he explained.

“It was built about 12-14 years ago in Australia, essentially, its main purpose being a fishing boat.

“It’s meant to trawl and also to troll, and also to longline and work pot with a line handler, as well as fish deep bottom for snapper.

“It’s a general purpose training vessel and multi-purpose vessel.”

Fisheries and marine resources degree and diploma students, basic observer, post-harvest operations and commercial fishing operations benefit from Leilani.

“For students, we use the vessel for a number of purposes such as navigation and seamanship, vessel safety and practical fishing,” Mr Walton said

“We also use Leilani as a base for training and delivery.

“We put a new engine in Leilani last year, so we gave her a new lease on life.”

Mr Walton said the NFC was about to refurbish a pole and line fishing vessel for trawl fishing.

 

China and Papua New Guinea

From PAUL OATES in Queensland, Australia

The Greater Co-Prosperity Sphere of the 20th Century seems to have been reinvented in the 21st Century with not surprisingly, the same results for those who do not share in the benefits but only in providing them.
If the bush knives are indeed being sharpened and the level of frustration is clearly rising, it is only a matter of time before the pot boils over.
What will Australia's position be if there is open rebellion? If PNG cannot control it's own people who are conducting tribal wars in the Highlands, what might happen when the Chinese in PNG are attacked? If the Chinese feel their nationals are threatened, would they be 'invited' to send troops to protects their citizens and investments? If that happened, what would Australia's position be? What if China wished to establish a permanent military presence in PNG?
I wonder what a fly on the wall might have overheard when the Chinese heir apparent met with PNG and Australian Prime Ministers recently? Of course the fly in Canberra would had to have spoken Mandarin.
See attached article from Time Magazine (on line)

___________________________________
The World of China Inc.
By Hannah Beech / Ramu Monday, Dec. 07, 2009

Lunch at the site of the future Ramu nickel and cobalt mine in the remote hills of Papua New Guinea is a hurried affair, food shoveled into eager mouths. But the menu is as divided as the two distinct groups of workers squatting in the heat, swatting away flies and filling their bellies before their nine-hour, seven-day-a-week shifts begin again. In one huddle are local laborers chewing chunks of sweet potato and the canned fish known in pidgin dialect as tinpis. In another clump are imported workers from China who dig into rice topped with pork belly and chili - black bean sauce. The Chinese, who were shipped in by the state-owned China Metallurgical Group
Corp. that has invested $1.4 billion into this faraway outpost, can understand neither English nor pidgin, two of the national languages. The Papua New Guineans speak no Mandarin. Even at mealtime, an event during which both cultures would normally encourage community and hospitality, the air is weighted by mutual incomprehension. "How can we eat together if everything about us is different?" asks Shen Jilei, whose first overseas experience transferred him directly from China's Sichuan province to a South
Pacific nation he hadn't even known existed.
A New Look at Old Shanghai
Notes of culture clash ring everywhere I wander in the vast construction zones that by the end of this year will turn a pristine stretch of virgin forest and grassland into one of the world's largest nickel-extraction sites. On the palm-fringed coast of Basamuk Bay, where the Ramu refinery will be situated, a chatty Beijing-born building engineer tells me that before the Chinese arrived, "the natives were completely uncivilized and running around almost naked." I voice my doubts, telling him that I've just talked to a nearby villager who described a PowerPoint presentation she recently made detailing environmental concerns about the mine. The engineer, like many other Chinese I meet, remains unimpressed. "All they do is chew betel nut and act lazy," he says. "They don't know how to work hard like we Chinese do." (See pictures of Chinese investment in Africa.) The impression the Chinese have left on many P.N.G. nationals isn't much better. A local landowner whose ancestral territory lies in the middle of the mine site alleges, improbably, that the nickel will be used to feed a secret Chinese weapons program. In the capital Port Moresby, my driver announces that if a gang to evict Chinese from P.N.G. is formed, he will be the first to join. "I will sharpen my bush knife and chop 10 or 20 heads," he says. The unease about Chinese influence extends to government circles, even if the Ramu mine promises to add 8 percentage points to the country's GDP. "I know the Chinese are going out everywhere in the world and investing successfully," says Rona Nadile, an assistant secretary of labor and industrial relations. "But what I don't understand is why are they are so stubborn to not respect our local culture. We are a democracy. They have to play by our rules or we will rise up."
Mixed Blessings
When China began its global investment push in the early part of this century, the flood of new money was welcomed, particularly in those parts of Asia, Africa and Latin America that felt abandoned by the West. China's promise not to politicize aid and investment by attaching pesky conditions like improved human rights pleased many governments. Between 2003 and 2008, Chinese direct investment overseas skyrocketed - rising from $75 million to $5.5 billion in Africa, 1 billion to $3.7 billion in Latin America and
jumping from $1.5 billion to $43.5 billion in Asia. The People's Republic now ranks as the No. 1 foreign investor in countries as diverse as Sudan and Cambodia. In exchange for the natural resources needed to feed China's economic engine, Beijing began an assiduous campaign to win foreign hearts and minds by financing stadiums, hospitals and lavish government offices. The Foreign Ministry in East Timor was built courtesy of the Chinese, while Guinea-Bissau's marble-accented parliament building was a gift from Beijing.
Some countries, however, are no longer as willing to extend a red carpet toward the globetrotting Chinese. Although political strings might not come with Beijing's cash, there are economic catches. The roads, mines and other infrastructure on offer are most often built by armies of imported Chinese labor, cutting down on the net financial benefit to recipient nations. Chinese companies investing abroad also tend to ship in nearly everything used on building sites, from packs of dehydrated noodles to the telltale pink-hued Chinese toilet paper. It's not only the contracted Chinese workers who show up, either. Within a few years, their relatives invariably seem to materialize to set up shops selling cheap Chinese goods that threaten the livelihood of indigenous entrepreneurs. Locals who do get work on Chinese-funded projects complain that their bosses don't heed national labor laws ensuring minimum wage or trade-union protection. Over the past three years, anti-Chinese riots have erupted everywhere from the Solomon Islands and Zambia to Tonga and Lesotho. Tensions are also simmering in India, where the Chinese are involved in several major infrastructure projects. Even
high-level officials are speaking up. In Vietnam, plans for a $140 million Chinese-operated open-pit bauxite mine were publicly excoriated by none other than revolutionary hero General Vo Nguyen Giap because, he said, of "the serious risk to the natural and social environment."
An Island Apart
Nestled in one of the most backward parts of one of the world's least developed nations, the Ramu mine has emerged as an acute example of resentment against China Inc. In 2004 P.N.G. Prime Minister Michael Somare returned home from Beijing, triumphant at having snared the country's largest foreign-investment project to date. The euphoria was short-lived. Landowners brandished slingshots and announced they wouldn't sign off on their tribal territory being used for mineral extraction, no matter what document was signed in China's Great Hall of the People. Environmentalists cried foul over plans to deposit mine waste in the sparkling Basamuk Bay,
while local workers protested conditions that even P.N.G.'s Minister for Labor and Industrial Relations David Tibu described as slavelike and "not fit for pigs or dogs." Skirmishes repeatedly broke out between villagers and the 1,500-plus imported Chinese laborers, some of whom were working illegally in P.N.G. At the same time, anger has boiled over because of an
influx of thousands of Chinese who over the past couple of years have monopolized businesses that by law should be reserved for P.N.G. nationals. In May, anti-Chinese riots convulsed cities nationwide, and several people were killed amid the looting of Chinese-owned shops. "Our timber, our minerals, everything, goes to China," says Damien Ase, founder of the nonprofit Centre for Environmental Law and Community Rights in Port Moresby. "But we get so little in return."
Read more:
http://www.time.com/time/magazine/article/0,9171,1943087,00.html#ixzz0YUVQXK6m

Record-breaker expected to hold oil

INTEROIL’S Antelope-2 well in Papua New Guinea has flowed 705 million cubic feet of gas per day and yielded 11,200 barrels of condensate per day, breaking another world record.

 The better than anticipated results, which are equivalent to about 129,000bbl of oil per day, follows the Guinness Book of World Record certification of Antelope-1 back in March, which flowed 382MMcfd and yielded 5000bbl condensate.

The gas flow test for Antelope-2, lying 2.3 miles south of Antelope-1 and just within PPL 237 in Gulf Province, went for 30 minutes using a 6-inch capacity choke opened to 4.375in while surface flowing tubing pressure was 1258psi.

The results indicate Antelope-2 could hold enough gas to support almost two liquefied natural gas trains, but as the owner of PNG’s only oil refinery, InterOil is more excited about the potential for oil further down.

Drilling before the test reached a depth of 2260m of the planned total depth of 2525m.

InterOil president Bill Jasper told PetroleumNews.net the remaining drilling and completion work at Antelope-2 could take at least another 60 days and he expected more condensate to come, along with oil.

At 11,200bpd of condensate, Jasper said InterOil could start production in about 24 months to generate “cash flow we never dreamed of”.

But if oil is further down, Jasper said it could be barged to InterOil’s refinery in nine months.

InterOil chief executive Phil Mulacek told PNN the presence of oil was confirmed in Antelope-1 and the company would set casing to isolate the massive gas section in Antelope-2 with the view of opening it when needed for LNG.

Once the casing is complete, InterOil will drill further down to test the expected heavy condensate and then the potential oil zone underneath.

“We are going to be testing condensate over the next three weeks,” he said. “We look to test for oil by the end of the year or the first two weeks of January.”

InterOil is bringing in a specialty crew from Houston to help undertake horizontal drilling.

“We will do a horizontal well and the objective is first to test the heavy condensate then drill horizontally into the oil leg,” Mulacek said.

Horizontal drilling was going to be used in case the 6in drill bit got into an isolated tight area, while 20m away there could be great permeability in the oil zone.

Looking at the combined resources of the Antelope reef and the Elk structure, Mulacek said the latest gas flow results meant the reservoir was bigger than 6.1 trillion cubic feet and InterOil was aiming to get 8tcf for two big trains of its LNG project.

Antelope-2 also had a larger dolomite interval than Antelope-1 and better porosity.

Further modelling of the reservoir will be done while front-end engineering and design work for a stripping facility to cash in on the condensate has begun with the help of EDG Consulting Engineers.

The proposed site is on the Purari River instead of the Elk-Antelope field and is targeting recovery of 9000bpd.

Mulacek said once the company understood the saturation levels, which was expected this month, final design could start and a final investment decision was planned for the first half of 2010.

Representatives from Mitsui attended the flow test of Antelope-2 yesterday and Mulacek said they were interested in the condensate project.

As for InterOil’s LNG plans as part of the Liquid Niugini Gas consortium, the upcoming December 8 FID for the rival ExxonMobil-led PNG LNG project takes precedence for the PNG government.

Mulacek expects the government to pursue an agreement for Liquid Niugini, targeting cargoes in 2015, soon after the FID for PNG LNG.

Liquid Niugini is 52.5% owned by InterOil and 47.5% held by Pacific LNG, with the project aiming to build a 6-9 million tonne per annum LNG plant adjacent to InterOil’s oil refinery at Napa Napa.

Meanwhile, InterOil is conducting 2D seismic over a 100km area, including the Deer prospect west of Antelope-2.

The seismic is due for completion at the end of January and for processing in February.

With a cash position of $81.8 million at the end of the last quarter, InterOil has the Antelope-3 and Antelope-4 appraisal wells to drill after work is done at Antelope-2.

Antelope-3 will be 0.6 miles south of Antelope-1.

Just before the gas flow test yesterday, old hands from Weatherford, Halliburton and SGS confirmed to PNN that what they had seen in InterOil’s Elk-Antelope field, which also hosted major flows from Elk-4 last year, was beyond what they had encountered elsewhere in their decades of experience.

Jasper and Mulacek presented the Guinness Book of World Records certificate for Antelope-1 to Gulf Province Governor Havilla Kavo yesterday.

The certification was sought to counter scepticism of the well’s results.

From "TIME MAGAZINE" last week- China in Papua New Guinea

From John Fowke

If  Papua New Guineans are killed and injured by Government forces trying to control any riot which entuates at New Year we will see the beginning of a real, meaningful fight for independence in PNG.And it may become a short-lived civil war.There is great danger here.Is the country's government prepared?

John

 

The World of China Inc.
By Hannah Beech / Ramu Monday, Dec. 07, 2009
Kemal Jufri / Imaji for TIME
Lunch at the site of the future Ramu nickel and cobalt mine in the remote hills of Papua New Guinea is a hurried affair, food shoveled into eager
mouths. But the menu is as divided as the two distinct groups of workers squatting in the heat, swatting away flies and filling their bellies before
their nine-hour, seven-day-a-week shifts begin again. In one huddle are local laborers chewing chunks of sweet potato and the canned fish known in pidgin dialect as tinpis. In another clump are imported workers from China who dig into rice topped with pork belly and chili - black bean sauce. The Chinese, who were shipped in by the state-owned China Metallurgical Group Corp. that has invested $1.4 billion into this faraway outpost, can understand neither English nor pidgin, two of the national languages. The Papua New Guineans speak no Mandarin. Even at mealtime, an event during which both cultures would normally encourage community and hospitality, the air is weighted by mutual incomprehension. "How can we eat together if everything about us is different?" asks Shen Jilei, whose first overseas experience transferred him directly from China's Sichuan province to a South Pacific nation he hadn't even known existed.

Notes of culture clash ring everywhere I wander in the vast construction zones that by the end of this year will turn a pristine stretch of virgin
forest and grassland into one of the world's largest nickel-extraction sites. On the palm-fringed coast of Basamuk Bay, where the Ramu refinery
will be situated, a chatty Beijing-born building engineer tells me that before the Chinese arrived, "the natives were completely uncivilized and
running around almost naked." I voice my doubts, telling him that I've just talked to a nearby villager who described a PowerPoint presentation she recently made detailing environmental concerns about the mine. The engineer, like many other Chinese I meet, remains unimpressed. "All they do is chew betel nut and act lazy," he says. "They don't know how to work hard like we Chinese do." (See pictures of Chinese investment in Africa.) The impression the Chinese have left on many P.N.G. nationals isn't much better. A local landowner whose ancestral territory lies in the middle of the mine site alleges, improbably, that the nickel will be used to feed a secret Chinese weapons program. In the capital Port Moresby, my driver announces that if a gang to evict Chinese from P.N.G. is formed, he will be the first to join. "I will sharpen my bush knife and chop 10 or 20 heads," he says. The unease about Chinese influence extends to government circles, even if the Ramu mine promises to add 8 percentage points to the country's GDP. "I know the Chinese are going out everywhere in the world and investing successfully," says Rona Nadile, an assistant secretary of labor and industrial relations. "But what I don't understand is why are they are so stubborn to not respect our local culture. We are a democracy. They have to play by our rules or we will rise up."
Mixed Blessings
When China began its global investment push in the early part of this century, the flood of new money was welcomed, particularly in those parts of Asia, Africa and Latin America that felt abandoned by the West. China's promise not to politicize aid and investment by attaching pesky conditions like improved human rights pleased many governments. Between 2003 and 2008, Chinese direct investment overseas skyrocketed - rising from $75 million to $5.5 billion in Africa, 1 billion to $3.7 billion in Latin America and jumping from $1.5 billion to $43.5 billion in Asia. The People's Republic now ranks as the No. 1 foreign investor in countries as diverse as Sudan and Cambodia. In exchange for the natural resources needed to feed China's economic engine, Beijing began an assiduous campaign to win foreign hearts and minds by financing stadiums, hospitals and lavish government offices. The Foreign Ministry in East Timor was built courtesy of the Chinese, while Guinea-Bissau's marble-accented parliament building was a gift from Beijing.

Some countries, however, are no longer as willing to extend a red carpet toward the globetrotting Chinese. Although political strings might not come with Beijing's cash, there are economic catches. The roads, mines and other infrastructure on offer are most often built by armies of imported Chinese labor, cutting down on the net financial benefit to recipient nations. Chinese companies investing abroad also tend to ship in nearly everything used on building sites, from packs of dehydrated noodles to the telltale pink-hued Chinese toilet paper. It's not only the contracted Chinese workers who show up, either. Within a few years, their relatives invariably seem to materialize to set up shops selling cheap Chinese goods that threaten the livelihood of indigenous entrepreneurs. Locals who do get work on Chinese-funded projects complain that their bosses don't heed national labor laws ensuring minimum wage or trade-union protection. Over the past three years, anti-Chinese riots have erupted everywhere from the Solomon Islands and Zambia to Tonga and Lesotho. Tensions are also simmering in India, where the Chinese are involved in several major infrastructure projects. Even high-level officials are speaking up. In Vietnam, plans for a $140 million Chinese-operated open-pit bauxite mine were publicly excoriated by none other than revolutionary hero General Vo Nguyen Giap because, he said, of "the serious risk to the natural and social environment."
An Island Apart
Nestled in one of the most backward parts of one of the world's least developed nations, the Ramu mine has emerged as an acute example of
resentment against China Inc. In 2004 P.N.G. Prime Minister Michael Somare returned home from Beijing, triumphant at having snared the country's largest foreign-investment project to date. The euphoria was short-lived. Landowners brandished slingshots and announced they wouldn't sign off on their tribal territory being used for mineral extraction, no matter what document was signed in China's Great Hall of the People. Environmentalists cried foul over plans to deposit mine waste in the sparkling Basamuk Bay, while local workers protested conditions that even P.N.G.'s Minister for Labor and Industrial Relations David Tibu described as slavelike and "not fit for pigs or dogs." Skirmishes repeatedly broke out between villagers and the 1,500-plus imported Chinese laborers, some of whom were working illegally in P.N.G. At the same time, anger has boiled over because of an influx of thousands of Chinese who over the past couple of years have monopolized businesses that by law should be reserved for P.N.G. nationals. In May, anti-Chinese riots convulsed cities nationwide, and several people were killed amid the looting of Chinese-owned shops. "Our timber, our minerals, everything, goes to China," says Damien Ase, founder of the nonprofit Centre for Environmental Law and Community Rights in Port Moresby. "But we get so little in return."
Read more:
http://www.time.com/time/magazine/article/0,9171,1943087,00.html#ixzz0YUVQXK6m   

Burns Philp building to be rebuilt

Captions: 1. Artist’s impression of Burns Philip with an additional third storey with balcony 2: The Bell Tower to be incorporated into the reconstruction 3: Tribal Den Hotel - to be renamed Jeffery Haus 4: Tribal Den Hotel concrete shell to be incorporated in the new design

 

 Mid this year, the historic Burns Philp building in Port Moresby  along with the Tribal Den was destroyed by fire.

Nasfund made a commitment that the Tower would be saved.

Now a few months later, the board has committed to rebuild Burns Philp with an addition third story and balcony.

“Tradition, history and continuity are all factors in the decision to protect the Bell Tower and rebuild an important historical landmark,” says joint CEO Rod Mitchell.

“The building will comprise three levels of commercial spanning 2,500 sq m of space, with commanding views over Fairfax Harbour.

“The construction will be done by Hornibrooks NGI Limited, a company 21% owned by Nasfund.

“Construction is expected to be completed by December 2010.”

Mr Mitchell said the Tribal Den Hotel would over the next 12 months be transformed into 2,000 sq m of commercial space on three levels of approximately 650 sq m per floor.

“Renamed in recognition as Nasfund’s longest-serving chairman John Jefferey, as well as a distinguished professional life on numerous high profile boards including over 10 years as president of the Employers Federation (PNG), the building will along with Burns Philp Haus, rejuvenate a long neglected stretch of Champion Parade.

“The construction will be unique for Papua New Guinea, with a face painting of a traditional Mekeo face painting and head dress by artist Daniel Waswas embedded in the glass.

“It is intended to block pave the pedestrian path, shift electricity poles and replant trees along this part of Champion parade, restoring it to pre eminence.

“The construction will be done by Hornibrooks NGI Limited, a company 21% owned by Nasfund.

“Construction is expected to be completed by December 2010.”

Nasfund Archipelago takes shape

Captions: 1. Map of Nasfund Archipelago 2.  Artist’s impression of Harbour City

Nasfund’s bold commitment three years ago to shift the city focus to the water and to Harbour City is moving closer to reality with the announcement of 65 apartments to be constructed, starting March 2010.

Nasfund will own 60% of this venture.

The additional 65 apartments combined with the 20 apartments (Sol Wara) already under construction plus 9,000 sq m of office space signals a new concept for Port Moresby – living and working by the water.

“This major on-going project was the product of a well-considered plan to shift the Town towards the sea and capitalise on Fairfax Harbour,” according to Nasfund joint CEO Rod Mitchell.

“Similarly Harbour City and the surrounding precinct of Konedobu were ideal for development being two kilometers from the GPO and linked to the Poreporena freeway.

“Easy access without the congestion of town made this location extremely desirable.

“It also meant that the Town could be split with a new ‘City’ – totally without the constraints the ‘Old City’ had shackled itself to, including poor traffic flows and ‘hotch potch’ architecture.

“This however will soon change as Nasfund develops a commercial plan for the Burns Philp site and in doing so revitalise a significant part of the town centre.

“Across in Konedobu, with the soon to be completed IPA House covering 2,700 sq m and ‘the Factory’ – a seven pod commercial development covering 6,200 sq m, the Archipelago project will draw to a close as we begin plans for a further commercial splash in late 2010.”

 

China, Papua New Guinea and the Pacific.

 From John Fowke

The Quiet Revolution-Maybe the Aussies know what they are doing….but where does PNG stand in this scenario of the present and near future?

Part of a report entitled "The Quiet Revolution" published in 2005 by respected Australian journalist and commentator Tom Dusevic  speculates upon Australia's developing relationship with China.

 "The Chinese are renowned for taking the long view. Australians, generally more easy-going, look ahead about as far as the weekend. To gauge where the relationship between the two countries is heading, you need a time frame that sits somewhere between several days and a couple of centuries: let's say 20 years.

"The Chinese have been part of the Australian story since the early days of settlement. I expect China to be of ever growing importance to Australia," says Foreign Minister Alexander Downer -( n.b.-in 2005)- "In the next 15 or 20 years it has the potential to become our biggest trading partner, for sure.

"A highly placed but unnamed Australian observer is prepared to look even further ahead in Dusevic's report.."In 25 to 30 years, Australia will be to China much as Hong Kong once was," says the government official, who has been dealing with China for two decades.

"There will be 5 to 10 million tourists coming here from the mainland each year. Our universities will be dependent on Chinese students. Large amounts of prime real estate in the major cities will be owned by Chinese investors. I see very large parts of the farming and mining sectors in Chinese hands. How else can a country of 20 million people survive and prosper in this part of the world, with a rising China?"

Dusevic continued, inter alia;"....from the standpoint of 2005, that scenario seems overwhelming. Some might say it's unrealistic, a straight-line projection that ignores the risk of unforeseeable events or friction in the relationship. How easy is it, after all, to predict the behavior of an authoritarian regime that leads 1.3 billion people? But for governments and the forward scouts of free enterprise, such future-gazing is vital. To a medium-sized country like Australia, China's economic and political rise seems irresistible. The two countries have been been growing closer for some three decades, since Australia gave diplomatic recognition to the communist People's Republic in 1972. China's growth and reform have continued with barely a blip since 1978. But trade and the movement of people go back a lot further, as Fu Ying, China's Ambassador to Australia, notes-( n.b. -in 2005)- "The history, habits and nature of our peoples have laid the foundations for the extension of relations," she says. "We are able to understand each other."

…………".In the 1840s, thousands of Chinese indentured laborers and free settlers were drawn to a thriving British colony which was to become Australia. Today, 430,000 people, including merchant bankers, students, artists, gamblers and tourists, move between Australia and China each year. If Hong Kong is included, the figure almost doubles. China's rise is easing Australia's isolation, putting it close to one of the hubs of the world economy. But it is also taking a toll….."

If Australia, a prosperous, modern industrialized nation-state of something over 20 million people is to become a subserviant, even if politically independant, client of China, equivalent to today's Hong Kong, what will be PNG's fate in the next two to three decades?What plans does PNG's leadership have for this aspect of the nation's future? Have they any plan at all?