Tuesday, January 22, 2013

Papua New Guinea LNG Project at its completion stages

By Joe Wasia

Papua New Guinea is one of the few countries in the world that has huge deposits of petroleum and mineral resource such as gold, copper, nickel, cobalt, Zinc, natural oil and gas across its culturally diverse land. For decades many mining companies have been developing mining projects in the country. However, oil and gas industry was just touched by PNG's owned Oil Search Ltd when it developed Kutubu Oil which now exists for almost 21 years.
Much talked PNG LNG project in new Hela Province is the second oil and gas project in the country operated by Exxon Mobil a United State owned company in co-venture with Oil Search limited.
We have few other oil and gas projects coming up and they are Gulf LNG which will be developed by Inter oil and PNG government (50-50) and the Western LNG by Talisman Energy and few others.



The PNG LNG Project is operated by:
ESSO Highlands Limited (33.2%)
Øa subsidiary of EXXON Mobil Corporation
in Co-Venture with
qOil Search (29%)
ØPNG’s largest oil and gas producer
qIndependent Public Business Corporation (16.6%)
ØPNG government
qSantos (13.5%)
ØAustralia’s largest domestic gas producer
qNippon Oil (4.7%)
ØJapan’s largest integrated oil company
qMineral Resources Development Company (MRDC) (2.8%)
ØPNG oil & gas trustee and manager for landowner interests
qPetromin PNG Holding (0.2%)
ØPNG State owned corporation

The Project-project package
C1 – Early Works - Clough – Curtain JV
Upgrade base & wharf, roads & bridges for construction contractor + site prep for well pad & HGCP, quarry
 EPC 1 – Telecommunications
Camps and facilities Communication for construction and operations
 EPC 2 – Offshore Pipeline - Saipem
Offshore Pipeline
 EPC 3 – LNG Plant - Chyoda JGC JV
2 trains, marine facilities for tanker
 EPC 4 – Upstream Facilities - CBI Clough JV
HGCP, permanent camp & infrastructure, Hides well pads
 EPC 5A – Onshore Pipeline - Spiecapag
Offshore Pipeline
 EPC 5B – Upstream Infrastructures 
 Mac Dow CCC JV
Komo Airfield and access road
Everyone, including government and the people of Papua New Guinea have high expectations and hopes for better future as country's the Gross Domestic Product (GDP) is expected to be doubled in the next few months has PNG LNG project into operational stages.
However, the problem of mismanagement and corruption by the elected leaders and their cronies or bureaucrats holding top positions in the country down to the project management on the ground is remained unresolved. We cannot expect miracles from heavens if we are not accountable in handling the billions of kina from the existing projects and other revenues sources in the country.

It’s about time we manage these massive funds with transparency, integrity and with good governance. If we continue fail in this area we will have no one to blame but ourselves.

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