Prime Minister: Border trade vital

Source: The National, Friday, February 1, 2013

 

By MALUM NALU

PRIME Minister Peter O’Neill says there are good opportunities along the border areas to develop relations between Indonesia and Papua New Guinea, particularly at Wutung, West Sepik
He told reporters yesterday he had met recently with Indonesian President Susilo Bambang Yudhoyono in Bali where several issues relating to cross-border relations were discussed.
“They (Indonesia) have offered to send facilities across the border to help us,” O’Neill said.
“They are concerned that our infrastructure is not up to standard.
“They are willing to help us build a road all the way to the nearest possible town, and possibly beyond, and also to try and get electricity from Jayapura across to power the Wutung district and also the nearest towns like Vanimo.
“That’s the sort of development we are encouraging.
“We will be working closely with the Indonesia government on this.
“The Indonesian government has indicated that they want to get into economic partnership with us along the border areas.
“These are things that we are discussing, and we are getting our officials to go to Jakarta in coming months, to finalise some of these agreements that the president and myself have discussed and highlighted.
“There are good opportunities along the border areas.”

Governor stands firm on buai ban

Source: The National, Friday, February 1, 2013 

 

NATIONAL Capital District Governor Powes Parkop says he will not bow to buai (betel nuts) sellers and chewers even though it may cost him his political career.
“Somebody’s got to do it (ban selling and chewing of betel nuts) and I have to do it,” he told The National yesterday.
“There’s a political price to pay and I’m going to pay the price.
“I’m going to pay the price but the health and welfare of our city are more important.”
Parkop said he had to take these drastic actions because both sellers and chewers, which included some very well-educated people, had no sense of responsibility.
“I’ve already had enough of all the excuses that people give: custom, sustain livelihood and so on.
“These are just excuses that people give to abuse betel nuts, spit everywhere, and take no responsibility.
“I’m fed up, the majority of our residents are fed up, most of our citizens are fed up of it.
“The sooner we do it, the better, but we are going through a process.
“The NCDC board will decide on the ban.
“My objective is not to stop people selling and chewing, I just want them to abide by the city regulations.
“The city regulation is very simple: ‘do not sell and do not chew in public place’.
“I am forced to go to this extreme because we tell them not to sell here, not to chew here, not to spit here, but they would not listen.
“So if they value their livelihood and want to continue to earn a living from betel nuts, the simple thing is to abide by the regulations that we have put in place.”
Parkop is disappointed that many of those who chew betel nuts and spit are well-educated people.
“Many of these people are highly educated, some of them have two to three degrees, save kilim ol (they are very intelligent), but they do stupid things,” he said.
“It’s not just stupid but it’s unhygienic, ugly and it’s not healthy.”
He said the city now had 5,000 reported TB cases.
 “Just on the health side, we have in the city now 5,000 cases of TB and it’s growing.
“This is a disease that was almost eradicated during the colonial times.”

Prime Minister cold on Ok Tedi issue

Source: The National, Friday, February 1, 2013

By MALUM NALU

PRIME Minister Peter O’Neill says he will not be pushed by either BHP or PNG Sustainable Development Program (PNGSDP) into extending the mine life for Ok Tedi mine in Western.
He told reporters after addressing a Port Moresby Chamber of Commerce and Industry breakfast yesterday that there would be no mine life extension to 2025 until he was convinced that the mine was working for the benefit of people of Western and Papua New Guinea.
The state, ironically, wholly “owns” Ok Tedi Mining Ltd (OTML) through PNGSDP (63.4%) and the State of PNG (36.6%).
O’Neill, who last November banned Ok Tedi Mining Ltd (OTML) chairman Professor Ross Garnaut from entering PNG after comments made in The Austra­lian newspaper, said there was no need to speed up mine life extension.
Earlier this month, OTML managing director and chief executive officer Nigel Parker, told The National that Western villagers numbering more than 100,000 from 156 villages had unanimously agreed that the company continue operations until 2025, pending government approval.
“This is my favourite subject -- Ok Tedi and PNG Sustainable -- so I’m glad you asked that question,” O’Neill said.
“We will do the right thing for the people of Western and the country.
“That is our priority.
“We are not going to advance anybody else’s priority.
“Priority is people of Western, government of Western and the people of Papua New Guinea.
“I think that any mine life extension must satisfy these criteria.”
O’Neill, who has accused BHP of running the PNGSDP by remote control from Melbourne and questioning whether PNG had benefited from the project, remained steadfast in his views.
“Whose interests are they (BHP and PNGSDP) protecting?” he said.
“Who is it (mine life extension) really going to benefit, whether it is really going to benefit the landowners, the (Fly River) provincial government, and everyone else who are stakeholders in this project?
“The people who are wanting the extension, particularly BHP through PNG Sustainable, has to clearly indicate to the government that mine life extension will make a real change in our country.
“So far, I am not convinced.
“I can tell you that there is no certainty in whether the mine life extension will take place or not.
“I have to be convinced, not only me but the entire parliament has to be convinced, that 10 years ago we made the right decision for the country (in accepting OTML from BHP and giving indemnity).
“Unfortunately, I don’t believe that.
“We have given (BHP) protection from the environmental damage that caused misery for our people and cost huge damage to our people.
“This is not the sort of development I want to encourage in our country.
“I want to assure the people of Western that their interest will be paramount and the country’s interest will be paramount when we go forward on this.
“I am not in a hurry (on mine life extension).
“We can wait; the resources are not going to run away.
“We’re quite happy to wait.”
 

Fake farmers

Source: The National, Friday, February 1, 2013

By MALUM NALU

BOGUS farmers swindled up to K300 million from the National Agriculture Development Plan fund from 2009 to 2011, Prime Minister Peter O’Neill has revealed.
And he has directed the Task Force Sweep team to identify these so-called “paper farmers of Waigani” and bring them to justice.
They had been reportedly working in collusion with some officers in the Department of National Planning and Monitoring, some of whom have already been arrested.
“I think it’s well over K300 million. It was budgeted for and spent on so-called farmer assistance,” he said.
“The matter is now being investigated by Task Force Sweep. I’m sure that you know as a result of that, some arrests have been made in national planning, which managed the programme.
“Of course, I can’t pre-empt the investigation and what’s going to be the outcome of the investigations, but we are encouraging Task Force Sweep to carry that out in a timely and orderly manner as we all expect,” the prime minister said.
“We are hoping to get to the bottom of some of these thefts that took place in this very important programme.”
As a result of the “paper farmers” scandal, the NADP was done away with in 2011, with the K100 million annual allocations being diverted to the National Development Bank from last year.
“This year, as in last year when we took over, we decided to shift the focus,” O’Neill said.
“Rather than giving money to paper farmers, we decided to put it through the agriculture bank (NDB), so that Papua New Guineans can have an opportunity with genuine proposals.”
O’Neill is also determined to see a clean-up of the Agriculture and Livestock department following a reported overspending of K40 million last year. It is believed to have culminated in the suspension of acting secretary Dr Vele Ila’ava last week.
The NADP fund - K100 million each year - was meant for the genuine hardworking farmers who needed assistance. But the funds were intercepted by the “paper farmers” with no proper accountability and much of it going to dubious projects and individuals, he said.
O’Neill was chief guest at a Port Moresby Chamber of Commerce and Industry breakfast at the Royal Papua Yacht Club yesterday.
O’Neill said he was also “very disappointed” at the way the DAL was being managed.
“I have told two ministers - minister for public service (Sir Puka Temu) and minister for agriculture (Tommy Tomscoll) - to sit down and get on top of this issue about budget overruns, which has been costing DAL close to K40 million.
“We can’t afford to allow departmental heads and their staff to run around spending money that has not been approved by parliament.
“We are saying to both ministers to get on top of this, get the management right, and get the culprits who overspent to account for what they have done.”

Oil Search produced 6.38 million barrels of oil in 2012

Source: The National, Wednesday, January30, 2013

OIL Search oil production in the fourth quarter of 2012 was 1.79 million barrels of oil equivalent (mmboe), taking production for the 2012 full year to 6.38 mmboe, according to the company’s December quarterly report released yesterday.
This, according to managing director Peter Botten, was within the company’s guidance range.
“In the fourth quarter, we experienced a return to normal operating conditions for our PNG producing oil fields following the unplanned shut-in during the third quarter,” he said.
“Total oil and gas production for the quarter was 1.79 mmboe, which brought total production for the full year to 6.38 mmboe, consistent with our guidance range.
“1.66 million barrels of oil was sold during the quarter, at an average oil price of US$111.09 per barrel.
“The crude oil inventory position increased by 81,000 barrels compared to the 2011 year end position.
“Total operating revenue for the quarter was US$218.2 million, taking 2012 full year re­venue to US$724.6 million, just slightly lower than the 2011 full year revenue of US$732.9 million.”

Oil Search posts US$724 million revenue in 2012

Source:  The National, Wednesday January 30, 2013

By MALUM NALU

OIL Search finished the 2012 calendar year on a high note, with revenues for the 2012 full year of US$724.6 million (K1.52 billion) and US$218.2 million (K457 million) for the fourth quarter, according to its December quarterly report released yesterday.
The company’s financial results for the year to Dec 31, 2012 will be released to the market on Feb 26, 2013. 
Managing director Peter Botten said the fourth quarter featured a strong production performance from its core PNG oil fields and good progress made on the PNG LNG project and other growth opportunities, including gas expansion and material oil exploration.
 At the end of last year, the PNG LNG project was about 70% complete and on track for first LNG sales in 2014.
The estimated project cost has increased to US$19 billion while the plant capacity has risen to 6.9 million metric tonnes per annum.
“For the PNG LNG project, a number of major pieces of project infrastructure are now at, or nearing, completion, with the remainder of works progressing generally in line with schedule,” Botten said.
“Importantly, runway pavement at the Komo airfield is progressing well and first cargo flights, which will bring in key items of equipment for the construction of the Hides Gas Conditioning Plant (HGCP), are planned to commence this year.
“Oil Search’s associated gas and PRL 2 life extension projects are also advancing and remain on track to supply commissioning gas to the LNG plant this year.
“The operator, Esso Highlands Ltd, has reconfirmed the project remains on schedule for first LNG sales in 2014.
“Following a cost and schedule review by the operator in November, the capital cost estimate for the project has increased from US$15.7 billion to US$19 billion.
“While this is disappointing, the economic impact is largely offset by a 5% increase in LNG plant capacity and considerably higher oil prices than when the project was initially sanctioned.
“Project economics remain sound.”
The PRL 3 JV has begun development studies to assess potential design concepts for the P’nyang gas field, which may include a third PNG LNG train.
“Oil Search continues to develop its options for LNG growth,” Botten said.
“During the quarter, design studies for the P’nyang gas resource in PRL 3 continued, with a range of options under consideration, including the potential for a third PNG LNG train.”
 A farm-down of Oil Search’s Gulf of Papua acreage to TOTAL S A was executed and documentation submitted for PNG government approval.
Botten said this satisfied one of the company’s core strategic objectives, which was to bring an experienced LNG operator into the licences, to share risks during the exploration phase.
“Assessment of the new 3D seismic data in the Gulf licences has been encouraging and planning for the offshore drilling programme, beginning in the first-second quarter of this  year, is well advanced,” he said.

PNG government urged to go slow on death penalty

AAP

The Archbishop of Port Moresby says Papua New Guinea's government will be slow to activate its death penalty laws because of church opposition.

The Archbishop of Port Moresby says Papua New Guinea's government will be slow to activate its death penalty laws because of church opposition, after the Pacific nation's attorney-general said he is revisiting the idea.
Archbishop John Ribat says Attorney-General Kerenga Kua's plan to activate the never-before-used law is the wrong way to deter crime and may encourage payback as families seek revenge for an execution.
"The payback system can escalate. Killing will give rise to more killing," he said.
"If the church really is against it, the government will be really slow to promote this. The government has respect for the church."
PNG is home to almost two million Catholics, who comprise 27 per cent of the population.
The death penalty is part of PNG's criminal code but the sentence has never been carried out.
"The reason it didn't move forward to implementation is we did not have the methodology," Attorney-General Kerenga Kua told AAP.
"The mechanism has not been prescribed ... coupled with the political will not being there.
"But it is there now."
He says there are currently 10 convicted criminals who have been sentenced to death.
Mr Kua says crimes such as piracy, aggravated murder and treason should attract the sentence.
"A very narrow band of crimes allow for the death penalty but it only applies in the most aggravated circumstance of wilful murder," he said.
"Then you have piracy, which is growing in the country.
"We need to stamp it out."
National Capital District governor and human rights lawyer Powes Parkop also opposes the plan.
"It is an inhuman form of punishment and therefore should be unconstitutional," he told The National newspaper last week.
"There is no empirical evidence to show that such punishment has been a deterrence to crime generally or the type of crime for which it is prescribed as a penalty."
He says in the United States, where some states have the death penalty, there is no evidence to show it has reduced crime.
The last death sentence carried out in PNG - by hanging - was during Australian colonial rule in 1954.