Sunday, March 06, 2011
Petromin pays K100 million in taxes and dividends
Petromin has paid K8 million as dividend to the state in the 2008 and 2009 years of operation, in addition to K105.5m in taxes to the government since 2008, according to board chairman Brown Bai.
Speaking at the opening of Petromin Haus last Friday, Bai said this was because of sound and prudent management, and urged management and staff to continue taking pride in their work and new office.
He also applauded last week’s decision by Mining Minister John Pundari to nominate Petromin to participate in four world-class mining projects: Solwara-1, Frieda River, Wafi-Golpu and Yandera.
“In our assessment,” Bai said, “these projects are operated by reputable operators and Petromin is happy to be a participant in these respective projects, because they will add value to the growth of the company and future prosperity of our people.
“Similarly, Petromin is comfortable to be a partner in the Moran oil fields and the PNG LNG projects, which are operated by world-class operators.
“Petromin is also a nominee in the second large Elk/Antelope LNG project, with a 20.5% equitable interest, led by InterOil Corporation.
“Whilst we have not been provided information on the recent arrangement between Energy World Corporation (EWC) and Liquid Niugini Gas Ltd (LNGL), we hope the project will be developed on schedule.
“…I am particularly excited about the future prospects based on major important investment decisions and new commitments that we have made to further enhance Petromin’s continuing successful performance.
“These include mineral and petroleum exploration programmes and commercial investments in partnership with strategic partners.”
Petromin currently has six wholly-owned subsidiaries which hold its equity in current and future projects: Tolukuma Gold Mines Ltd (TGM); Eda Oil Ltd (Moran petroleum project); Kumul LNG (PNG LNG project); Eda LNG (Elk/Antelope LNG project); Eda Minerals (mineral exploration and production); Eda Energy (petroleum exploration and production); and Petromin Shipping (LNG shipping).
A dream comes true for Petromin
From Kalinoe’s residence, Petromin moved on to the Government Printing Office, and then Pacific View Apartments before staff began moving into Petromin Haus on Jan 3 this year.
Petromin board chairman, Brown Bai, said the opening of the company’s new head office building was an excellent testimony of the will for Papua New Guinea to prosper through more direct and active investment in the development of minerals and petroleum resources.
“As the saying goes, ‘where there is a will, there is a way’,” he said.
“And Petromin plays a pivotal role in paving the way for the nation’s will to prosper from the revenue generated through our mineral and hydrocarbon resources.
“This process began with the creation of the Petromin Act and establishment of Petromin PNG Holdings Ltd and now it has its very own head office building.
“I am really proud of our hardworking management team and staff serving tirelessly in their new office to deliver on Petromin’s mandate to advance the state’s interests as enacted by parliament.
“Now the company, with its new home here, can confidently move forward from strength to strength in the performance of its mandate to help propel the nation’s will to prosperity.
“I have no doubt in my mind that this modern office facility shall shine as symbol of prosperity for PNG, through direct participation by Papua New Guineans in the mineral and hydrocarbon sectors.
“This will be the engine room for generating revenue flows from oil, gas and minerals developments that will be invested in nation-building efforts that bring more benefits to our people.”
The building was pre-fabricated in Indonesia to Petromin specifications, and delivered, with all furniture and fittings, in containers.
This includes the cost of land, design, materials, fittings, furniture, and security features.
The building is one of PNG’s first green buildings, and has many energy-saving features, including climate control, insulated roofing, and reflective glass panelling.
It is designed to save energy.
The building was designed to company specifications by a Jakarta-based firm, and was constructed over a period of 10 months.
It is earthquake-proof, and the structure is coated in a fireproof material that ensures that despite fire damage, the structure will remain intact.
All divisions and subsidiaries of the company are located within the building, except for the Tolokuma gold mine administration, which is still based at Waigani.
Petromin PNG Holdings Ltd is an independent company created by the state of PNG 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.
Prime Minister opens landmark Petromin Haus
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| The K31.9 million Petromin Haus as it looked before opening last Friday.-Pictures by MALUM NALU |
He said this last Friday when opening the modern state-of-the-art office complex at 2-Mile in Port Moresby, witnessed by senior ministers, corporate executives and members of the diplomatic corps.
“I am pleased to be part of this national company that is prepared to take on the country’s modern commercial and international development culture.
“A culture of sophisticated technology, technical language, communication systems, safety and environmental consciousness, good field and industry best practices at world standards and high returns that can come with successful operations.
“Having initiated and established Petromin, my government will continue to maintain firm support for the company in its mission to generate and effect asset acquisitions and investments, and to efficiently manage the state’s interest in designated mineral and petroleum resources.”
Sir Michael said Petromin’s determination was quite evident when, despite criticisms and skepticism, it took the bold step of acquiring Tolukuma gold mine with liabilities and turned it into a sound operating mine within a short period of time.
“Petromin has taken important and decisive moves to invest in exploration activities, including partnering with InterOil Corporation in the Elk/Antelope project as well as other areas with potential for oil, gas and minerals,” he said.
“These include its first-ever exploration license - PPL 345 – for petroleum exploration in the New Ireland Basin and 13 highly-prospective mining tenements in Central, Morobe and Oro provinces.
“As part of Petromin’s innovative approach to investment decisions, I note with keen interest that the company is now pursuing a joint development plan with strategic partners from Republic of South Korea and Norway that is aimed at introducing new and sophisticated technology in floating LNG production, storage and off-loading system (FPSO).
"As a trustee shareholder, I expect these partnerships to be developed in ways that respect each other’s roles and functions so that projects are implemented expeditiously.
“And with the current increase in exploration and mining in the country and your outstanding performance, I would like to see Petromin make a significant commitment to human resource development in this sector.”
Sir Michael urged the Petromin board to consider a significant number of scholarships for young Papua New Guineans in coming years.
"And with the current increase in exploration and mining in the country and your outstanding performance, I would like to see Petromin make a significant commitment to human resource development in this sector,” he said.
“We have many vocational training schools funded by our donor and development partners.
“It makes sense for national companies in this sector to also invest in the training of our trades people as well as specialists.”
Saturday, March 05, 2011
Flower power to Gerehu
| Joe Gimbe and wife Jenny tending to plants at their roadside market.-Picture MALUM NALU |
Tete is one of the worst settlements in Port Moresby, where law and order problems have been rife over the years, including murders, rapes and robberies.
On December 16, 2008, leading citizen and businessmen Sir George Constantinou was killed by just petty criminals outside Tete, in a crime which shocked Papua New Guinea and the world, and which saw Port Moresby disparaged as one of the top five murder capitals in the world.
In retaliation, police went in and demolished the settlement two days later to fulfil what the Prime Minister Sir Michael Somare had warned about in November 2003, after 15 people were killed in Tete.
Sir Michael had warned that one more killing would have this settlement removed.
Hundreds of setters were left homeless, with many fleeing the area with their belongings when the police operation started.
The police operation followed a public outcry against the notorious settlement, which has a long history of criminal activity, following the brutal murder of Sir George.
Police personnel from all stations in the nation’s capital went to the settlement around 2pm and began bulldozing it, setting alight buildings and chopping down trees on one side of the settlement.
“In retrospect, we all have very short memories: we are masters of the art of knee-jerk reaction,” businessman Allan Bird said after the Sir George murder.
“Illegal settlements full of young men with little or no education, no skills and little chance of getting a job, who are going to turn on the rest of us eventually unless we do something about their situation.
“Razing the settlements will only move the criminals to another location.
“There are many more places with young men who have no jobs, no life, no hope and no future.
"To them their life has little value, so why should your life or that of our loved ones be worth anything?
“They have nothing to lose while we have everything to lose.”
Three years on, Tete is back, and rising from the ashes with its denizens quietly determined to rub off that mark of Cain which has plagued them since the settlement was established.
In the Biblical Book of Genesis, God declared that Cain, the firstborn son of Adam and Eve, was cursed for murdering his brother Abel in the Garden of Eden, and placed a mark upon him.
When God confronted Cain about Abel's death, God cursed him, saying:"What have you done? Listen! Your brother's blood cries out to me from the ground. Now you are under a curse and driven from the ground, which opened its mouth to receive your brother's blood from your hand. When you work the ground, it will no longer yield its crops for you. You will be a restless wanderer on the earth." (Gen. 4:10–12).
One of those quietly striving to rub off that mark of Cain at Tete, working the land so that it will yield its crops for him, is Joe Gimbe from Amaiyufa village in Asaro, Eastern Highlands province.
He has set up a roadside flower and plant market at the recreational park at Gerehu Stage 2, from his ‘Garden of Eden’ at Tete, and is quietly working towards greening and beautifying Gerehu and Port Moresby: literally bringing us all ‘flower power’,
Since Gimbe set up shop on Wednesday last week, business has been good, with many people stopping to buy plants, flowers and home-made compost for their homes, as well as wandering through his little roadside market.
Not bad for a self-taught gardener, who has never been to school and, ironically, was given his marching orders from the big PNG Gardener Justin Tkatchenko last July.
Gimbe has since been eking out a living by selling beautiful plants and flowers in stylish flower pots.
Many a house in Gerehu and wider Port Moresby is decorated with trademark Joe Gimbe pot plants.
He fashions them at Tete, where he sold them at home, but has now ventured into the public domain at the recreational park.
Gimbe makes enough to put food on the table for his young family, pay the bills, and put his two children to school.
He is adamant PNG would not have such a huge unemployment problem if people eat humble pie and go into such small business.
He is also proud that he is quietly contributing to keeping Port Moresby green and beautiful.
“I first came to Port Moresby in 2000,” Gimbe tells me.
“I started work with Robin Carter at Palm Grove.
“I learned how to nurse flowers, maintain gardens for companies, as well as plant flowers in gardens.
“Robin Carter left for New Zealand in 2004.
“I then started work with Justin Tkatchenko at PNG Gardener, however, left PNG Gardener in July 2010.
“I was without a job, so I started growing plants and selling them, out of Tete settlement.
“Since last July, I’ve been running my own little plant business at home in Tete, where people who knew me came and bought my plants.
“However, it wasn’t that many, that’s why I decided to come out in public to this area.
“There have been many customers since I came out here on Wednesday last week.”
Gimbe admits to me that he has never been to school.
“I grew up growing coffee,” he says.
“There was a tribal fight in my area from 1993-2000, so I left and came to Port Moresby.
“When I came to Port Moresby, I didn’t know anything about this plant business, until I joined Robin Carter at Palm Grove.
“Now I really enjoy what I’m doing.
“If my plants give so much joy and happiness to people, it also gives me a lot of joy and happiness.
“I haven’t made any big sales as yet, or have major clients, and only make small sales to individuals who want plants and flowers for their homes.
“My plants and flowers are reasonably priced, and range from K1 to K40.”
So there you are, next time you’re driving to Gerehu, make sure you stop at the recreational park and buy a plant or flower from Joe Gimbe.
You will make your home more beautiful, help a small local businessman, as well as rub off the mark of Cain from the notorious Tete Settlement.
If you want to contact this little PNG gardener, his number is (675) 72361481. Show him your support by buying one of his plants or flowers!
Friday, March 04, 2011
3 charged with fraud
By ANGELINE KARIUS
THE main suspect involved in conning a local businessman in Madang into believing he was Department of National Planning and Monitoring secretary Joseph Lelang has been arrested and charged with two of his accomplices, The National reports.
Nelson Paniu, 42, of Bulian village in Manus was charged along with Patrick Guan, 23, of Kondan village in Kerowagi, Chimbu, and Wesley Pabulu, 36, from
All three were charged with two counts each of stealing under false pretence and conspiracy.
Paniu, a former policeman, conspired with his accomplices to steal from complainant Bobies Karbain from Bogia in Madang, according to police.
The incident occurred between Feb 14 and 18, where Karbain made two cash deposits of K1, 000 and K10, 000 into a BSP account number 1001629208 under the name Robert George.
The second payment was made after Paniu claimed that his wife had cancer and needed treatment in
Karbain was given a false copy of a K5 million department cheque serial number 241839 under the name of Kaborbor General Contractor Ltd, when he was asked to travel to
Karbain paid another K40, 000 to the accused upon request.
Paniu and his accomplices told Karbain, who was in Madang, that his K5 million cheque was ready and that an upfront payment was to be made before the cheque could be released.
It is understood that Karbain had submitted a K5 million cocoa and coconut rehabilitation project proposal through the department to help start his project.
Guan had his case adjourned after appearing for mention yesterday, however, Paniu and Pabulu are expected to appear before the Waigani committal court today.
Acting deputy police commissioner and chief of operations Fred Yakasa, when referring to this case, said the fight against graft would intensify due to theft and embezzlement was spiralling out of control.
He warned people to be wary of conmen and thieves who had become more daring and cunning in their illegal activities, adding that the theft of K5 billion over the years from the government is a good example of such crimes.
Clinton: China seeks to outflank ExxonMobil
She told the senate foreign relations committee in Washington DC that Republican proposals to cut US foreign affairs budget would hit US efforts to compete with China’s rising power on the global stage, Reuters news service reported.
“We are in a competition with
“ExxonMobil is producing it.
The committee heard that ExxonMobil was the majority stakeholder in the PNG LNG project, now in full construction stage, which was due to come on stream in 2014 and was expected to produce 6.6 million tonnes of liquefied natural gas a year.
When she visited
She urged PNG not to go down that path but learn to use and invest the revenue from the LNG project in long term investments.
The US-based Export-Import Bank in 2009 approved the largest financing transaction in its history to help develop the PNG gas reserves.
In
According to Reuters,
“If anybody thinks that our retreating on these issues is somehow going to be irrelevant to the maintenance of our leadership in a world where we are competing with
Republicans have proposed a 16% cut to US spending on diplomacy and foreign assistance, among other things, saying it was imperative to fight the ballooning federal deficit.
Reuters reported
“Let’s put aside the moral, humanitarian do-good side of what we believe in and let’s just talk straight realpolitik,” she said of the various
“I also look at this from a strategic perspective, and it is essential.”
Murder suspect for top government t job
MURDER suspect Dr Theo Yasause was short-listed for, at least, three departmental head positions, including that of the chief secretary, before he was arrested by police following the shooting death of rugby league star Aquila Emil last month, The National reports.
This came to light on Wednesday when cabinet appointed Margaret Elias as permanent secretary for the prime minister and the National Executive Council. By virtue of the post, she automatically assumes the post of chief secretary as well.
Elias beat Yasause and a former deputy secretary of the Prime Minister’s Department, James Melagepa, to the post.
The National learnt that Yasause had applied for and was short-listed for the position of secretary of Commerce and Industry and Education as well – appointments for which were still pending before cabinet.
The National learnt that all selections were made and the short-list finalised before the shooting incident which landed Yasause as the main police suspect.
Yasause, a doctorate holder, was formerly head of the Office of Climate Change but it was closed under controversial circumstances by the prime minister and he was subject to an investigation and was cleared of all the charges.
After the fatal shooting of Emil in the early hours of Feb 4 in
He had been denied bail and remained a remandee in Bomana prison.
Wednesday’s cabinet decision on the chief secretary revealed that government jobs, however senior, were unattractive.
The position of chief secretary, the top of the public service bureaucratic ladder which carried the most attractive terms and conditions, was publicly advertised but attracted only five applicants.
Only Elias was a serving departmental head. The National learnt that the other four were retired former public servants.
Even the acting chief secretary, Manasupe Zurenuoc, was said to have not applied for the job and so was not considered. He would revert to his substantive position as secretary for Provincial Affairs.
There were fewer than 10 candidates for each of the other heads of department positions advertised-Education, Commerce and Industry and Agriculture and Livestock.
There were no permanent appointments made at Wednesday’s meeting but the short-listed names would be considered when NEC next convenes.
It was almost certain Yasause would be dropped from the short-list.

