Tavurvur volcano smoking away

Pictured is Tavurvur Volcano in Rabaul, East New Britain province, smoking away last Saturday.                                                                                                                                                          I took these pictures on the beachfront at the Queen Emma Lodge in Kokopo.             

                                                                                                                                            

Sunrise over Kokopo today

I caught this beautiful sunrise over Kokopo this morning before we left for Tokua airport to catch out Air Niugini flight back to Port Moresby.                                                                                         I took the pictures along the beachfront at Queen Emma Lodge, Kokopo, where I had been staying since last Saturday.                                                                                                                       A truly mesmerising sight at Kokopo this morning

                                                                                                         

InterOil records drill success

PORT MORESBY, Monday, November 16: INTEROIL Corporation has announced that it has successfully logged 1,224 feet (373 meters) of the reservoir in the Antelope Reef structure. 

The success announcement was registered with the New York and Port Moresby stock exchanges on Friday.

The drilling and logs to date demonstrate very good reservoir quality in the Antelope-2 well which is located 2.3 miles south of the Antelope- 1 well at Upper Purari River in Papua New Guinea’s Gulf Province. 

Preliminary results from the drilling and logging of the Antelope-2 well:

·        Wireline logs and third party evaluation have demonstrated a gas and gas liquids column over the entire logged vertical interval of 1,224 feet (373 meters), from 6,004 feet (1,830 meters) to 7,228 feet (2,203 meters);

·        Confirmation of the reefal structure with dolomite and limestone over the total reservoir section;

·        The cumulative net or productive reservoir exceeds 1,178 feet (359 meters) giving a net to gross ratio of over 96%;

·        Porosity averaging over 14.0% across the entire logged interval, with some sections exceeding 20%;

·        The average porosity and net to gross are better than the equivalent results derived from the Antelope-1 well.

The logged interval defined above is only the upper section of the reservoir. 

The drilling has stopped here, above the zone in which oil was sampled in the Antelope-1 well, to obtain these intermediate logs and to flow test the gas portion of the reservoir before running casing. 

Casing off the upper gas interval will allow us to better evaluate the lower section of the reservoir where we will be testing for a potentially higher condensate-to-gas ratio at the base of the gas column.

 Due to the washouts observed on the logs throughout the wellbore, InterOil has determined that the packer required for a drill stem test is not likely to seal and would not provide definitive results on the condensate ratio. 

The forward program for the well is to perform a production test, run a 7 inch liner and tie back, then drill out to test and core the lower gas interval and potential oil leg section of the reservoir.  The well will be drilled to approximately 8,285 feet (2,525) meters which is 1,056 feet (322 meters) deeper than the depth logged to date.

“These results continue to surpass our expectations as the logs of the Antelope-2 well are as good, or better than what we observed in our Antelope-1 well.  These results combined with the reservoir coming in high, a larger dolomite section deeper in the reservoir and an increase in average porosity are encouraging.” said Mr Phil Mulacek, Chief Executive Officer.

 

Remote Pomio sees the light

From MALUM NALU in Kokopo

 

The much talked about private public partnership (PPP) has taken a completely new turn for remote Pomio, East New Britain province, one of the most-undeveloped areas of Papua New Guinea.

Tolai businessman Eremas Wartoto, owner of the SWT Group of Companies,  has purchased equipment worth K15 million to bring development to Pomio, starting with the development of the 26km Uvol ring road.

The road will be constructed at a cost of K4 million from Pomio's K10m district support improvement programme.

The equipment - consisting of two wheel loaders, two motor graders, two rollers, two loaders, a piling machine, a barge, seven dump trucks, a bitumen spray truck, two water trucks, a dump truck, a concrete mixer, two prime movers, two trailers and a crusher – were launched in Kokopo on Saturday in a ceremony witnessed by Pomio MP and National Planning and Development Minister Paul Tiensten, East New Britain Governor Leo Dion, community leaders and members of the Kokopo and Rabaul business community.

Mr Wartoto, a self-made success story who is one of the biggest contractors to the Lihir gold mine and who owns Kokopo's Queen Emma Lodge among his many businesses, said there was only one way to go in the province and that was south towards Pomio.

"There is only one way for East New Britain to go, and that's towards the south coast," he told an appreciative crowd.

"You can't go back to the volcanoes (Rabaul)."

Mr Wartoto said political stability at both national and provincial level was vital for economic development.

"I can see some stability in this government," he said.

"As long as there is a good relationship between the Governor and the MPs, we can make this province become a role model for the rest of the country."

Mr Tiensten admitted that Pomio was a very difficult place to develop because of the topography and terrain, and up to now, the only roads in the area were those built by logging companies.

"Pomio is a very difficult place to develop because of the topography and terrain," he said.

"If you're talking about road accessibility, you're talking about millions.

"The topography and terrain has made Pomio an impossible place to get into."

Mr Tiensten said the PPP policy reflected the changing mindset of the government towards development of the country.

"PPP is a major policy of the government," he said.

"In the past, government tried to do everything without business houses or the churches.

"We must all work together as we are all trying to serve the same person.

"Governments in the past have failed.

"That's why we started this PPP policy.

"The establishment of this ring road is a breakthrough for Pomio.

"I want to thank logging companies like Rimbunan Hijau for helping to develop Pomio.

"By next year, you can drive from Kokopo to Tol, and on to Pomio."

Mr Dion commended Mr Tiensten for his leadership at both national and electoral level.

"I agree that to develop Pomio is very difficult," he said.

"No contractor was willing to go there because of the risks.

"I'm glad that this bold decision has been made to get this machinery into Pomio.

"It's a challenge, Minister, and a challenge to the contractor.

"It's a challenge for the people to have a road in reasonable time.

"It's been a problem but now we have a solution to this.

"I thank the Pomio people for unlocking and releasing your land for development.

"I believe that this operation in Pomio will succeed in the shortest possible time."

I'm in Kokopo

I'm in beautiful Kokopo, East New Britain province, and have been there since last Saturday.
I was supposed to have travelled back to Port Moresby today but was offloaded and I'll be travelling tomorrow morning.
Otherwise, I'm really enjoying myself here at the Queen Emma Lodge where I'm staying, sitting down on the beachfront with the volcanoes of Rabaul in the background.

Malum

Is the powderkeg building up steam?

From PAUL OATES in Queensland, Australia

Hey Malum,
As 'motherhood' statements go, that list from the 16th APEC Finance Minister's Conference has to be the biggest and best I've seen in a long while.
Now to something far more serious:
The news item below in The National seems to point to an increasing restlessness and a potential for full scale violence to erupt.

Once it starts, it will be very hard to stop.
What's your take on this?
Cheers mate,
Paul
___________________________

Surely someone can read the signs. The shooter in the crowd may be a better shot next time. It's only as matter of time.

VIPs stoned
Source:
ANDREW ALPHONSE in TARI
A TEAM of senior Government ministers and Members of Parliament came under attack in Tari yesterday when angry locals pelted them with stones and booed them.
The entourage was in Tari for the licence-based benefits sharing agreement (LBBSA) forums and had planned to speak to the people at the Andaija Oval when they were pelted with stones.
Police had to fire several shots into the air to prevent further trouble.
No casualties were reported.
The entourage included Southern Highlands Governor Anderson Agiru, Finance and Treasury Minister Patrick Pruaitch, Petroleum and Energy Minister William Duma, State Enterprises Minister Arthur Somare, Public Service Minister Peter O'Neill, Sports Minister Philemon Embel, Education Minister James Marape, Kagua-Erave MP James Lagea, Imbonggu MP Francis Awesa, Mendi MP Pr Isaac Joseph, Komo-Margarima MP Francis Potape and Koroba-Lake Kopiago MP John Kekeno.

They were en route to Nogoli for the opening of the Hides PDL
1 LBBSA but decided to make a stop-over in Tari to address the crowd.
The crowd of mostly youths and village chiefs from Tari town and Hayapuga areas did not appreciate the presence of the leaders.
They protested over why the electorate of Tari-Pori and its four local level government (LLG) council areas - Tari urban, Tebi, Tagali and Hayapuga - were not included in the mapping of the petroleum development licence (PDL) areas in the PNG LNG project.
They felt they were going to miss out on the benefits.
As the ministers led by the local Hela MPs took to the stage to address them, the crowd moved towards the arena and booed them.
The crowd gestured angrily and shouted at the MPs and ministers.
Attempts to calm them down were greeted with more booing, yells and whistles.
Even Mr Agiru, who commands great respect in the whole of the Hela region, could not do much to control the agitated crowd.
The shocked MPs and ministers ducked for cover and were escorted to safety at the nearby Tari district court house.
Only Mr Agiru, Mr Marape, Mr Potape and Pr Joseph stood their ground in the grandstand even as the stones came flying at them.
Sensing further trouble from the defiant crowd that simply would not listen to them, Mr Agiru told them he would come in person today (Friday) and talk to them to get their views on what they were not happy about.
He then led the ministers and MPs 3km out of Tari town to Habare Seventh-Day Adventist (SDA) mission where they were picked by a helicopter and flown to Hides.
One of the leaders of the protesters and Kikita village chief, Timothy Hayara, said the people in Tari were angry because not all the Hela area was included in the PDL area, boundary and mapping.
Mr Hayara said while Komo and Lake Koroba were included in the LNG map as licenced areas, they were surprised that Tari was not included.
Youth leader Kobaiya Timu said if Tari was not included in the PDL map, there was no need for the State and the developer to come there and talk about the LBBSA forum in Tari.
He said they should do everything in Hides, Nogoli, Komo and Angore areas near the project sites.
Tari-based police highway patrol unit 20 policemen, who tried hard to keep the angry crowd under control, lost their vehicle side glass and headlights when the youths stoned the vehicle.
Police personnel flown in from outside the province to provide security at the LBBSA fired several shots into the air to disperse the angry crowd.
However, someone in the crowd also had a gun and fired back but fortunately, no-one was injured.

16th APEC FINANCE MINISTERS' MEETING JOINT MINISTERIAL STATEMENT

Introduction

1. We, the finance ministers of the APEC economies, convened our 16th annual meeting in Singapore on 12 November 2009 under the chairmanship of Mr Tharman Shanmugaratnam, Minister for Finance of Singapore. The meeting was also attended by the Managing Director of the International Monetary Fund, the President of the World Bank, the President of the Asian Development Bank and the Chair of the APEC Business Advisory Council (ABAC).
2. We gathered in the aftermath of the worst financial crisis and global recession since the Second World War. Just a year ago, the collapse of several large financial institutions led to global credit seizures, which then evolved into a macroeconomic crisis with a plunge in global trade and output, significant job losses and simultaneous recessions around the world.
3. We welcomed the vigorous response of APEC members in stabilising their economies by implementing extraordinary supportive fiscal measures, rapidly easing monetary policy, encouraging the flow of credit and supporting their financial sectors in an unprecedented manner. We commended the G-20’s role in coordinating these measures at the global level and pledged to maintain policies strongly supportive of growth until a durable recovery in private demand is secured.
4. We strongly welcomed the expansion of the G-20 agenda from addressing the global crisis to achieving a more balanced and sustainable pattern of growth. We are also committed to pursuing economic growth that is inclusive and broad-based. Inclusive growth creates opportunities for all of our people to enjoy the benefits of regional economic integration. This will support domestic demand in the region. The efforts of APEC members will play a critical role in achieving balanced and sustainable growth, given the size and dynamism of APEC economies. We also recognised that APEC, with its strength in consensus-building and implementing multi-year initiatives, is well-placed to reinforce the momentum of the G-20 agenda.
5. We agreed that in the post-crisis period, key challenges facing the world economy include restoring growth potential; successfully exiting the extraordinary fiscal, financial and monetary policy measures; implementing credible medium-term fiscal consolidation strategies; and meeting the region’s massive infrastructure needs.
6. We noted the important contribution that free and open trade and investment regimes have made to the growth and dynamism of the APEC region.  We are committed to supporting free and open trade and investment to advance Asia-Pacific and global prosperity and growth sustainability, and will actively resist protectionist measures. Despite the challenges of the crisis, we reaffirmed our strong commitment to achieve the Bogor Goals.

Fiscal Stimulus and Exit Strategies

7. We agreed on the crucial role that supportive fiscal measures in the APEC region had played in avoiding an even deeper global recession and resolved to remain vigilant until the economic recovery gains traction. We recognised the need to reduce and stabilise public sector debt burdens at a low and prudent level. In many economies, this will require, beyond the mere phasing out of stimulus measures, a comprehensive strategy of sustained budget consolidation, growth-enhancing reforms, and measures to address long-term demographic challenges.
8. We agreed that the pace of implementing exit strategies should take into account different stages in the economic recovery of member economies, the type of policy measures to be phased out, and any spillovers caused by our strategies. However, actions that would strengthen fiscal credibility without negatively affecting demand--such as measures to strengthen fiscal frameworks and some pension and health sector reforms, including those that will be phased in gradually--should start to be implemented as soon as possible.

Reforms to Support Strong, Sustainable and Balanced Growth

9. We welcomed the launch of the Framework for Strong, Sustainable and Balanced Growth at the G-20 Meeting of Finance Ministers and Central Bank Governors in St Andrews. We noted their agreement on a detailed timetable for a new consultative mutual assessment process. We will, as appropriate, support the work of international organisations, including the International Monetary Fund (IMF) and the World Bank (WB), to evaluate the collective consistency of policies of individual economies and regional groupings with the shared objective of achieving strong, sustainable and balanced global growth, by providing information on our policies and forecasts.
10. We are committed to maintaining and increasing the dynamism of our domestic economies. We agreed that, depending on individual economies’ circumstances, a combination of macro-economic policy adjustments and structural reforms was needed to achieve this, whilst supporting balanced and sustainable global growth. We discussed how structural reforms to improve economic flexibility, raise productive potential, develop financial markets and increase private demand can contribute to raising potential output growth over the medium- to long-term and narrowing development imbalances and reducing poverty.
11. In this regard:

·               APEC members with sustained, significant external deficits pledge to undertake policies to support private savings and undertake fiscal consolidation while maintaining open markets and strengthening export sectors.

·               APEC members with sustained, significant external surpluses pledge to strengthen domestic sources of growth. According to circumstances in individual economies, this could include increasing investment, reducing financial markets distortions, boosting productivity in service sectors, improving social safety nets, and lifting constraints on demand growth.

12. We will undertake monetary policies consistent with price stability in the context of market oriented exchange rates that reflect underlying economic fundamentals.
13. We called upon APEC economies to leverage on each others’ expertise in structural reforms in specific areas. Recognising the diversity within APEC, however, there can be no single approach. Rather, structural reforms need to take into account individual economies’ stage of development, demographic trends, factor and institutional endowments and comparative advantages. We discussed the important roles that the IMF and Multilateral Development Banks (MDBs) play in helping APEC economies design and implement growth reform measures as these institutions have a good contextual understanding of the region and individual APEC economies. We encouraged the Economic Committee to intensify its efforts to promote structural reform, particularly noting the importance of its work on competition policy and regulatory reform.
14. We directed officials to, on a pathfinder basis and in partnership with the IMF and MDBs, to identify priority areas for structural reform in economies and the region, and develop modalities to share best practices and expertise, and connect reform needs with expertise and resources from member economies, the IMF, MDBs and the private sector. This should be developed in close consultation with the APEC Economic Committee and trade officials, in order to better deliver initiatives that help drive structural reform in APEC.
15. We will prepare a report to our Leaders in a year’s time on our efforts to achieve stronger, more balanced, and sustained growth in the Asia-Pacific region.

Strengthening Financial Systems and Facilitating Finance for Sustained Growth

16. We committed to strengthen financial supervision to prevent the re-emergence in the financial system of excess credit growth and excess leverage and undertake macro prudential and regulatory policies to help prevent credit and asset price cycles from becoming forces of destabilisation.
17. At the same time, we recognised the importance of efficient and innovative financial systems in assuring development and continued income growth. We are committed to financial sector development and reforms oriented to improve the competitiveness and efficient operation of markets.
18. We agreed that it was critical to encourage the revival of cross-border investment flows. In this regard, we recognised the importance of ensuring that finance continues to flow into areas of development such as infrastructure and green growth. We also welcome ABAC's report and recognise its contribution to strengthening financial systems in the region.

Infrastructure Financing Development

19. The infrastructure needs of the Asia-Pacific region over the next decade are expected to be some US$750 billion a year, as economies replace aging infrastructure and build new infrastructure to keep pace with rapid economic development. The global recession vastly complicated the challenges facing APEC economies in financing infrastructure requirements, with the post-crisis investment climate characterised by strain on public balance sheets and reduced private sector risk appetite. In this regard, we noted the important role of the MDBs in helping economies upgrade necessary infrastructure in the region, thereby contributing to enhanced development capacity, poverty reduction and improved living standards. To this end, we agreed to work towards adopting sustainable and viable financing policies, and supporting technical assistance, capacity-building and knowledge-sharing initiatives to make infrastructure markets operate more effectively.
20. We welcomed the progress in implementing commercially viable infrastructure projects and practical PPP models to attract funding from private investors. In this regard, we encouraged economies to work with MDBs to develop and implement simple and replicable models to facilitate private investments into infrastructure. We welcomed progress towards developing common approaches towards private infrastructure investment across APEC economies, and noted the scope for further progress as demonstrated in the expert report Meeting APEC’s Post Crisis Infrastructure Challenge: Towards Commonality in PPP Infrastructure Markets. We welcomed the pathfinder initiative on developing a harmonised road map for private infrastructure provision. We also called upon MDBs to conduct studies and provide recommendations to help facilitate, catalyse and channel private sector financing into these sectors.
21. We affirmed the importance of incorporating the expertise and resources of the MDBs, economies and the private sector to facilitate increased private sector investment in infrastructure projects in the region. In this regard, we welcome the launch of the inaugural World Bank-Singapore Infrastructure Finance Summit, which serves as a valuable platform for the exchange of views on infrastructure financing developments, innovations in infrastructure financing and urban development, and showcase regional infrastructure initiatives and projects.

Capital Market Development

22. We supported the need for further capital market development and integration and to broaden and diversify the investor base. We resolved to intensify our efforts to promote capital market development efforts as these are integral to efficient intermediation of savings and capital flows, therefore contributing to enhanced long-term sustainable growth. To this end, we welcomed the ongoing capacity building initiatives to assist economies in strengthening their technical skills and knowledge base to develop and deepen their financial markets. In delivering such capacity-building, we are contributing to the broader implementation of G-20 financial sector reform priorities and the Financial Stability Board.
23. We reaffirmed our commitment for greater participation of financial institutions, pension funds, insurance companies and fund managers to provide depth and innovation in capital markets. We noted the successful outcomes of the 3^rd APEC Public-Private Sector Forum on bond market development, and we welcomed ABAC’s proposal to organise the fourth installment of the forum in Japan in 2010.  

Trade Finance

24. We noted the Report of the APEC 2009 Trade Finance Follow-Up Survey, which showed that the trade finance situation in APEC economies had improved since the first survey in June 2009, and that most APEC economies expect the trade finance situation to further improve over the next six months. Nevertheless, we agreed that APEC needs to remain vigilant.

Green Economy

25. We recognised the need to take action to tackle the threat of climate change and working towards an ambitious outcome in Copenhagen, within the objective, provisions and principles of the United Nations Framework Convention on Climate Change (UNFCCC).
26. We agreed on the importance of rationalising and phasing out over the medium term, inefficient fossil fuel subsidies that encourage wasteful consumption. We recognised the importance of providing those in need with essential energy services, including through the use of targeted cash transfers and other appropriate mechanisms. We will work with our Ministers responsible for energy policies to develop implementation strategies and timeframes that reflect our individual circumstances. We ask the IMF and MDBs to offer support to economies in this process.
27. We also agreed on the importance of simultaneously pursuing growth and improvement of the environment through research and development in clean energy and green technology, energy conservation and efficiency, as well as mitigating and adapting to climate change and environmental degradation.
28. In this regard, we requested our officials to study the status of green growth in APEC and public and private financing for green industries, including roles of market-based financing.

Other Matters and the Venue for the Next Meeting

29. We noted the recommendations of APEC Policy Support Unit’s (PSU) study on food security.
30. We are committed to fighting corruption, money laundering, terrorist financing, and other criminal abuse of the financial system. In this regard, we will continue to aggressively work to implement international anti-money laundering and counter-financing of terrorism standards and to comply with relevant United Nations Security Council Resolutions. We support the Financial Action Task Force’s mandate to include responding to new threats which affect the integrity of the financial system, such as proliferation finance. We welcome APEC’s work on securing remittances and cross border payments, detecting cash couriers and bulk cash smugglers, and preventing the terrorist abuse of non-profit organisations.
31. We thanked Singapore for hosting the APEC Finance Ministers' Process this year. We will meet again for our 17th meeting in Kyoto, Japan in November 2010.