GOVERNMENT OF PAPUA NEW GUINEA SIGNS INTEROIL'S LNG PROJECT AGREEMENT

GOVERNMENT OF PAPUA NEW GUINEA TO TAKE 22.5%

 

InterOil Corporation (NYSE: IOC) (POMSoX: IOC) yesterday announced that the PNG National Government has signed the Company’s Project Agreement for the construction of a liquefied natural gas (LNG) plant in Papua New Guinea.

Following approval of the Project Agreement by the National Executive Council on December 10, the Minister for Petroleum Hon William Duma and acting Governor-General Dr Allan Marat signed the Agreement securing PNG’s second LNG project.

The signing was witnessed by the Prime Minister Sir Michael Somare.

The Agreement sets fiscal terms for a twenty year period, which include a 30% company tax rate and certain exemptions applicable to large scale projects of this nature.

 It also provides for a 20.5% ownership stake to be held by the Government of Papua New Guinea’s nominee, Petromin PNG Holdings Limited.

A further 2% ownership stake will be taken by landowners directly affected by the plant.

As previously announced, the proposed LNG project would be developed by InterOil and its joint venture partners Pacific LNG Operations Ltd. and Petromin PNG Holdings Limited. The project targets a $5 to $7 billion LNG facility, with multiple trains.

Additionally, the Agreement provides for the expansion of the plant up to 10.6 million tons per annum (mmtpa).

While current plans call for first production of LNG towards the end of 2014 or beginning of 2015, InterOil is progressing a proposed liquids stripping plant, to be located in Gulf Province, in late 2011/early 2012, which would provide an attractive revenue stream prior to the commissioning of the LNG plant.

Sir Michael Somare, Prime Minister of Papua New Guinea, stated, “The government of Papua New Guinea, through its long standing partnership with InterOil, has secured an ownership stake across the entire value chain from wellhead to LNG offtake in a world class energy development project that will significantly contribute to national prosperity and fiscal security for many years to come.

“The national equity interest, to be held by the state’s nominee Petromin PNG Holdings Limited, aligns the Country’s economic interests with its partners and provides strategic assets for national security.”

Phil Mulacek, Chief Executive Officer of InterOil, commented, “The Government of Papua New Guinea has firmly demonstrated its commitment to delivering a stable, long-term supply of energy to a growing Asian market.

“The recent agreements set the stage for PNG to become a significant new Asian

energy hub.”

 

About InterOil

InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil’s assets consist of petroleum licenses covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil’s refinery in Port Moresby, Papua New Guinea. InterOil’s common shares trade on the NYSE in US dollars.

About Petromin PNG Holdings Limited

PNG Holdings Limited is an independent company created by the State of Papua New Guinea to hold the State's assets and to maximise indigenous ownership and revenue gains in the mineral and petroleum sectors. It is empowered as the vehicle to better leverage the State's equity holdings and encourage more production and downstream processing of oil, gas and minerals in PNG through proactive investment strategies either wholly or in partnership with resource developers. Petromin provides real opportunity for Papua New Guineans to increase ownership of their resources in mineral & petroleum assets.

Copenhagen a big waste of money for PNG

BY REGINALD RENAGI

THE DAILY news is very discouraging to the people of PNG. They hope for a better future for their children and grand children one day. But that one day is a long way off.
There are many problems affecting their livelihood and want the government to address their immediate needs. But the mass media hype in recent months is mostly about the UN climate change conference in Copenhagen and what we will tell other world leaders.
It’s no big deal. Everyone's being hoodwinked - ordinary people that is, but not intelligent PNGeans. It is one big cop out by the people running this country.
We have many important national priorities to address. Lately, however, these are being constantly overshadowed by a smokescreen of public statements about the Reduced Emissions from Deforestation and Degradation (or REDD) scheme, a global plan to slow down or eliminate the deforestation responsible for 20 percent of global emissions., as if it is the only viable policy option available.
REDD is only one aspect of a complex global phenomenon. PNG's delegation in Denmark seemed to have no real fall-back position if REDD was not acceptable to the world's developed nations who are the biggest biggest polluters.
In the past two weeks, critics have accused the PNG delegation of not being fully prepared for this conference. They are right.
The PM and his men forgot what is the position of our parliament and Opposition. We should have included the opposition’s stance on climate change to come up with a good bipartisan paper for Copenhagen.
We also did not need a big delegation of over 40 when half a dozen people should have been sufficient. It was morally wrong for the government to extravagantly burn several millions for this conference.
Considering the alleged eight million Kina for this conference, PNG has nothing beneficial to show for it.
The public should by now be in an uproar over their government’s spending millions for some greedy people to attend a conference that will not even reach any viable agreement. This is a total waste of money.
The people could have used this money in many needy areas. Our women have been crying out for a cancer machine for years. Teachers and nurses need a pay rise to meet the rising cost of living. PNG’s national security situation is appalling and needs much improvement.
With a tough year about to end, the people could do with some spare money now to enjoy a nice Christmas roast in this festive season.
Come on, Papua New Guineans, can’t you see they are laughing at our expense? Let us get rid of these greedy people in 2012.

Why can't I get a job?

Something you may not have seen recently.....

From PAUL OATES boonah.vista1@bigpond.com

Playing hide & seek with a Polar Bear -

Next time, get in the truck, stupid!

Good Thoughts & Dreams For A Better PNG

Hello Malum,

 

I have been reading your blogspot a lot and find the articles very interesting and also excellent pictures of PNG. You are a great journalist and I send this email for your valuable input and thoughts about the idea of raising awareness amongst the general community through word of mouth and usage of regular media sources to promote good habits, attitudes and values.  

 

Another year is shortly coming to a close and a new year soon to begin and instead of the usual "New Year Resolutions" that most of us (rarely) achieve e.g. quit smoking, quit binge drinking, stop chewing buai, lose weight or save some money, let us look forward to fulfilling dreams that we all wish to chase to improve our lives...

 

I believe we all have good thoughts in our dreams to see beautiful PNG moving ahead with the rest of the world and this could be by simply applying good thoughts that will not cost us an arm or a leg, but through genuine effort of telling others to change their undesirable habits and attitudes for the better. Advising them to be more respectful, showing honesty and courtesy, and caring and sharing, reminding them of good old-fashioned values and ways that we had learnt from our parents, from our village elders, from school, from church and from our neighbours. To get the message across to the masses, we could ask the media to help out by contributing some free space in their newspapers, radio and television. Worthy discussions could be rotated or offered on a voluntary basis from reputable persons in the community, from church pastors, from political leaders, from senior members of the disciplined forces and senior public servants and also business people. 

 

Simple messages could be conveyed to the people to obey the laws of the country, to respect others and the community, and settling problems and differences peacefully to avoid unnecessary confrontation and violence. Also telling people to stop doing deliberate acts of defacing (ugly graffiti and red buai spit) or damaging government and private property etc. These topics can be constant reminders in the newspapers, radio and television to everyone at least twice or three times a week. Also good suggestions could be discussed in a meaningful and wholesome way to engage the general public in participating for change and improvement to their lifestyles whether living in a town, city, settlement or village. Women could also use this opportunity via the media to voice their concerns on a whole lot of issues such as education, child health care, high cost of food, better housing, clean drinking water, fair employment, and be able to walk freely and safely without being harassed and so on.

 

Chasing those dreams would surely make PNG a great place to live, work and to do business and also more travellers would want to visit our lovely country, also investors would want to set up businesses to create more jobs and training opportunities. Our dreams can come true if everyone could spare a moment to listen to good thoughts from various reputable persons and apply those good thoughts or dreams. Young ones will grow up happy to enjoy a better and healthy future and they will pass on those dreams or values to their children...

 

Have a merry Xmas and a Happy New Year! 

 

James Derbyshire

Brisbane, Qld    

 

Twas the Night before Christmas

Twas the night before Christmas, when all through the house
Not a creature was stirring, not even a mouse.
The stockings were hung by the chimney with care,
In hopes that St Nicholas soon would be there.

The children were nestled all snug in their beds,
While visions of sugar-plums danced in their heads.
And mamma in her ‘kerchief, and I in my cap,
Had just settled our brains for a long winter’s nap.

When out on the lawn there arose such a clatter,
I sprang from the bed to see what was the matter.
Away to the window I flew like a flash,
Tore open the shutters and threw up the sash.

The moon on the breast of the new-fallen snow
Gave the lustre of mid-day to objects below.
When, what to my wondering eyes should appear,
But a miniature sleigh, and eight tinny reindeer.

With a little old driver, so lively and quick,
I knew in a moment it must be St Nick.
More rapid than eagles his coursers they came,
And he whistled, and shouted, and called them by name!

"Now Dasher! now, Dancer! now, Prancer and Vixen!
On, Comet! On, Cupid! on, on Donner and Blitzen!
To the top of the porch! to the top of the wall!
Now dash away! Dash away! Dash away all!"

As dry leaves that before the wild hurricane fly,
When they meet with an obstacle, mount to the sky.
So up to the house-top the coursers they flew,
With the sleigh full of Toys, and St Nicholas too.

And then, in a twinkling, I heard on the roof
The prancing and pawing of each little hoof.
As I drew in my head, and was turning around,
Down the chimney St Nicholas came with a bound.

He was dressed all in fur, from his head to his foot,
And his clothes were all tarnished with ashes and soot.
A bundle of Toys he had flung on his back,
And he looked like a peddler, just opening his pack.

His eyes-how they twinkled! his dimples how merry!
His cheeks were like roses, his nose like a cherry!
His droll little mouth was drawn up like a bow,
And the beard of his chin was as white as the snow.

The stump of a pipe he held tight in his teeth,
And the smoke it encircled his head like a wreath.
He had a broad face and a little round belly,
That shook when he laughed, like a bowlful of jelly!

He was chubby and plump, a right jolly old elf,
And I laughed when I saw him, in spite of myself!
A wink of his eye and a twist of his head,
Soon gave me to know I had nothing to dread.

He spoke not a word, but went straight to his work,
And filled all the stockings, then turned with a jerk.
And laying his finger aside of his nose,
And giving a nod, up the chimney he rose!

He sprang to his sleigh, to his team gave a whistle,
And away they all flew like the down of a thistle.
But I heard him exclaim, ‘ere he drove out of sight,
"Happy Christmas to all, and to all a good-night!"


Clement Clarke Moore (1779 - 1863) wrote the poem Twas the night before Christmas also called “A Visit from St. Nicholas" in 1822. It is now the tradition in many American families to read the poem every Christmas Eve. The poem Twas the night before Christmas has redefined our image of Christmas and Santa Claus. Prior to the creation of the story of Twas the night before Christmas St. Nicholas, the patron saint of children, had never been associated with a sleigh or reindeers! The author of the poem Twas the night before Christmas was a reticent man and it is believed that a family friend, Miss H. Butler, sent a copy of the poem to the New York Sentinel who published the poem. The condition of publication was that the author of Twas the night before Christmas was to remain anonymous. The first publication date was 23rd December 1823 and it was an immediate success. It was not until 1844 that Clement Clarke Moore claimed ownership when the work was included in a book of his poetry. Clement Clarke Moore came from a prominent family and his father Benjamin Moore was the Bishop of New York who was famous for officiating at the inauguration of George Washington. The tradition of reading Twas the night before Christmas poem on Christmas Eve is now a worldwide institution.

Source: http://www.carols.org.uk

JK returns to mum's home

By Newman Cuthbert

Children of mix parentage have the benefit of being from two or more provinces or even nationalities but there are times when some of these children are never given the opportunity to visit home provinces of either one of their parents.

This in itself is a sad state of affairs mainly because they miss out on the richness of the cultural heritage they inherit from either parent.

We refer to most of these as city kids who identify themselves with a province only by name.

For my son Joel, it has taken 20 years, but this Christmas he is fulfilling on his mums’ wishes and that is to have her own son return to the island of her birth.

“It is a wonderful feeling to have  this young man go ashore at my  home, wonder through the forests, watch the sunset from the mountains, swim in the same rivers, fish the creeks  for fresh water prawns  as I did in my teens and  get to understand  the life I  left  behind ,” Stephanie says.

Joel is of mix Oro and Siassi parentage and has spent most of his time growing up in Port Moresby and Eroro with a bit of time in Toowoomba in between.

But this Christmas he has decided to book a flight to Lae and get on a coastal ship for the one and half day sea journey which will take him to Finchhchafen and on to Siassi.

“Mum is from Gasam village and I have never been there so this will be quite an experience for me,” JK said.

Years ago Stephanie ventured from her home on Siassi like all other youngsters from the island and arrived in Port Moresby to train as a dentist at the Six Mile Dental College.

Some years later she moved on and joined the department of Post and Telegraph which later separated to become Telekom PNG.

Stephanie raised two girls who now have their own families and her baby boy JK is now a young man of 20.

“It is nice that my own son should decide to retrace my journey to Siassi to see where I come from, she said.

The prospect of travelling to Lae on an F100 is a far cry from the usual Dash 8 flights to and from Popondetta.

He is going home in the company of his mother’s younger brother Jerry who just as excited to have him.

“It is going to be one hell of a home coming and everybody is excited about this,” Jerry said.

Joel is named after his maternal grandfather the late Joel Som Kamia (Yolex).

In his prime this great man stood tall and elegant. He was descended from great warrior chiefs and took over on the death of his own father to be head of the Aslem Ngaivon clan.

But early in life he answered the calling of the Lord which took him and a young family away from home to spread the word of God in far off Sirunki valley of the Enga province.

Siassi is a small island just off the coast of West New Britain but is part of the Morobe Province.

It is rich in it cultural heritage for which the Sia dance is known throughout the country.

The people are spiritually linked to the land and the sea and they depict this relationship in their arts and crafts and their dances and demonstration of their hospitality to visitors.

It is a culture where the eagle, the fish and the  snake feature prominently while Bunrailum the fair fairy of the lakes who appears occasionally and  weeps as a sign that a member of the clan is about to pass on.

Joel will not be an ordinary visitor because he is the son of a woman who herself is an elder of her clan.  He will be treated with respect because of his mother’s status and his peers will hold him in high regard and relatives will go out of their way to make his stay as comfortable as possible.

But for JK the protocols of customs will not dampen the reasons for his own pilgrimage to Gasam village.

All the children’s stories he heard from mum while she was nurturing him will no longer be just stories but real people and places.

The many bays and lagoons protected by coral reefs  which as a young girl she would collect coral to process into lime and, the  white sandy  beaches, crystal clear waters  from  mountain streams cascading over rocks and pebbles.

It is an island of magic, beetle nut pepper fruit and lime where the taro and fish is plentiful and the mountains gently roll onto the ocean forming a picturesque coastline from which you can take in distant lands as far off as Madang, West New Britain and Rambutso on Manus.

Joel is crossing a bridge his mum built years ago that linked her people of Siassi with her in-laws thousands of kilometres away at Eroro village on the Oro Coast many years ago.

It will be a whole new   ball game and for the first time to experience his mother’s side of his life and his uncle Jerry will take him by the hands and guide him, educating him in the knowledge of customs and their ways and he will show him clan boundaries of land and the sea and help the young man conduct himself and induct him to be part of his mother’s culture.