Shell’s return a ‘vote of confidence’ in PNG

By MALUM NALU

Prime Minister Peter O’Neill yesterday (Thursday) assured investors that Papua New Guinea was an ideal business location, despite all the bad press of late.

O’Neill made the assurance when opening a new representative office for Shell, one of the largest energy and petrochemical companies in the world, at Petromin Haus in Port Moresby.

He said the return of Shell showed that “there is big investor confidence in PNG”.

“I want to investors and companies that despite our politics, PNG continues to have investors coming in,” O’Neill said.

“We have in recent times seen that the economy is going very well.

“Our foreign reserves are at record levels.

“The economy of the country is very stable.

“We look forward to working closely with Shell and Petromin over the years.

“This is a huge vote of confidence in our country.”

Shell vice-president commercial –Asia, Ton Ten Have, said the company’s return to PNG was a natural follow-on from the strategic alliance agreement and joint technical study agreement signed between Shell and Petromin last August.

Prime Minister Peter O’Neill…Shell return a ‘vote of confidence’ in PNG.-Pictures by ROY SANGI of Petromin

Shell vice-president commercial –AsiaTon Ten Have, Prime Minister Peter O’Neill, Petroleum and Energy Minister William Duma and Petromin managing director Joshua Kalinoe raise a toast to Shell’s return to PNG

Shell vice-president commercial –AsiaTon Ten Have

: Shell vice-president commercial –AsiaTon Ten Have, Prime Minister Peter O’Neill, Petroleum and Energy Minister William Duma at yesterday’s opening of the Shell PNG office

“Shell believes that Papua New Guinea is underexplored,” he said.

“We are looking at staying here for the long term.

“The LNG industry is not one that’s here today and gone tomorrow – it’s here for the long term.

“It is one that is based on collaboration and co-operation.

“Shell is a big energy player in the world, and one of the leading LNG companies in the world.

“We have been involved in some of the most-challenging projects the LNG industry has seen over the last 20 years.”

Ten Have said Shell would not be successful without having the right people, as it did in countries like Malaysia and Brunei.

“We have been humbled by all the support you have given us in getting Shell back to PNG,” he said.

“We look forward to a long-lasting and successful partnership.”

Ten Have said the JTSA was on track to be completed this year and Shell looked forward to working with Petromin to build a successful upstream business in PNG.

Petromin managing director Joshua Kalinoe welcomed the increased presence of Shell and added it would further facilitate for future opportunities in PNG.

“Shell is a world-class operator with a proven track record in all parts of the upstream business,” he said. 

“Together with Petromin, Shell will help PNG realise the full potential of its energy resources.”

Shell and Petromin entered into a Strategic Alliance Agreement on Aug 18, 2011 to establish a long-term partnership.

The agreement includes a joint study of major hydrocarbon basins in PNG and will enable the pursuit of mutually-beneficial upstream opportunities. 

It also contains skills-transfer elements, which will see Shell holding technical skills training sessions for Petromin staff, and Petromin staff posted to Shell’s office in Malaysia on development assignments.

Shell is a global group of energy and petrochemicals companies, with around 93,000 employees in more than 90 countries and territories, and helps to meet the world's growing demand for energy.

Sir Puka: Rice project will have major impact in Kairuku-Hiri

Minister for Agriculture and Livestock Puka Temu has strongly defended the Central province rice project, which has been the subject of much controversy lately.

 He said this in response to criticisms in the media that landowners had been left out and not informed about the project.

 Sir Puka said DAL, Central province administration and relevant government agencies had conducted wide consultation and awareness for the project.

 He said government officers had conducted extensive awareness and consultation with landowners and communities within Kairuku-Hiri district and would continue to do so.

 Sir Puka said he and other MPs from Central province, including Kairuku-Hiri MP Paru Aihi, had a public meeting with Aroa people at Pinu village last October and witnessed the support of the people for the project.

 He said there had been overwhelming support from people attended meetings conducted by DAL and its stakeholders at Bereina station and the villages of Bereina, Inauaia, Inaui, Agevairu, Pinu, Magabaira and Vanapa.

 A land mobilisation team comprising of officers from DAL and Lands Department also visited villages in the Gabadi/Aroa, Roro and Mekeo areas.

  A few villages are yet to be visited by the team, however, there has been positive response from majority of the villagers, who want the project to go ahead.

 Sir Puka said last month, the team visited North Mekeo area and spoke to people of Babagogo, Waika, Apanaipi, Piuga, Ameisaka, Inaujina, Egefa, Maipa, Akufa, Ioi and Imouga, who gave overwhelming support.

 He denied claims that he was treating the landowners as “fools”, as one newspaper letter writer suggested.

 “I have never in my political life, regarded and treated any landowner as a fool, or someone one can ignore in making decisions that require the use of their land,” Sir Pika said,

 “Indeed, with the Central Province Commercial Rice Project (CPCRP), it is because of this, and the need to have wider consultation and participation that we have conducted extensive awareness and continue to do so for this project throughout the Kairuku district.”

 He said the rice project was a major impact project in the agriculture sector that this country had ever seen, and the Kairuku-Hiri district in particular was very fortunate to have this project.

 “When done properly, this project will be highly beneficial to the local people, including those who are criticising it right now,” Sir Puka said.

 “In fact, I am advised that in a day, an average of four to five landowners and local villagers visit the CPRCRP office in Port Moresby, to either follow up on their ILGs or to obtain more information about the project.”

 He said so far, landowners had already registered with the CPCRP office 44 existing ILGs and 44 new applications.

 Of the existing ILGs, 30 are those that were formerly under the Mekeo hinterland project, with seven collected and 23 pledged to be handed in soon.

 Notification has been received of more ILGs to be brought in.

 Sir Puka said awareness and consultations on the project were continuing, together with land mobilisation work which was now at the land investigation reports (LIR) stage.

  In the meantime, DAL and the national project steering committee progresses the work on a deed of agreement that is acceptable for the State before it is signed with the investor.

 Sir Puka appealed to landowners and members of the public who have genuine concerns about the rice project to seek information from the CPCRP office at DAL headquarters and not to make misleading and incorrect statements in the media.

“I am always available and willing to visit Kairuku-Hiri district to talk about the project with our people and will certainly do so after the DAL and the project team has done its work,” he said.