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Kua Sees Bright Future for PNG Oil and Gas Industry
by PNG Business News - April 26, 2021
Petroleum Minister Kerenga Kua sees a bright future for the Oil and Gas industry.
According to Kua, the price of a barrel is currently over US$60 (K207.63).
“The outlook for the industry is still good and positive and the industry is still in very strong shape,” he said.
The Covid-19 pandemic, he said, remained a challenge to the industry.
However, the operator of the PNG LNG project, ExxonMobil PNG Ltd, took a professional approach to deal with the issue.
Globally, US oil prices are down 42 cents (K1.47), or 0.7 per cent, to US$62.71 (K219.89) a barrel, after rising 6.4 per cent last week as a result of the revival of Covid-19 cases around the world and countries imposing tougher sanctions that would hurt economic growth.
Oil Search Ltd, a partner in the PNG LNG project, recently said that the increase in Covid-19 cases in PNG has had no impact on its operations and production.
“To date, there has been no impact to production in our Oil Search operations in PNG as a result of the recent surge in the Covid-19 cases,” Kua said.
“The increase in confirmed Covid-19 cases in PNG has prompted Oil Search to enact its crisis and emergency management plans.
“The health and safety of our employees remain the highest priority and teams have been assembled in PNG and Sydney to deploy additional support to protect our people and to ensure the safety and reliability of our operations.
“At our PNG field locations, we continue to operate under precautionary protocols established in 2020, which includes redeployment of non-essential personnel, restriction of access and travel to field locations and implementation of strict preventative measures and quarantine zones.”
PNG Business News - December 19, 2019
200 Companies Show Interest In Pasca A Gas Project
About 200 companies have shown interest in the Gulf of Papua Pasca A gas project. This was after developer Twinza put out an expression of interest for companies to provide services to the project. Both local and foreign owned companies have shown interest to provide services during the construction and operation of the country’s first ever offshore gas project. Twinza Oil and Gas project development manager Erik Kowa said they are now categorising these companies according to the types of services they will be rendering. Mr Kowa said this is part of the company’s mission to support the government’s call on local content and is something they are striving to meet. He said as a result they have gone out with an expression of interest and have already received an overwhelming response. “From the PNG companies that have responded, we look at how qualified they are to participate in our tender process when we come to it. We sort of look at their capabilities and strengths, accreditations, PNG employee content and also experience, track record and of course preferences. “We just sort of done a desktop screening and while we get more certainty with approval from the project going forward, we’ll try and talk to some of you who have responded to find out what are the challenges and if you happen to be qualified according to our screening. We will try and understand what the story is and see if our assessment is valid, or if not we will see what we can do to get it done going forward,” Kowa said. “We are going through that to try and ensure that we give a fair go to companies who are here for the long term. “This is to ensure that we are supporting PNG’s young population in employment and we want it to be established not only for the project but in the long term,” he added. “We are working very hard to try and get the government’s approval’s out of the way so we can move forward.” Continue reading at https://postcourier.com.pg/200-companies-show-interest-in-pasca-a-gas-project/ | Post Courier
PNG Business News - March 23, 2021
Minister Says Pasca Talks In Progress
Twinza's Pasca is the topic of negotiations. According to Petroleum Minister Kerenga Kua, a plant in the Gulf is currently underway. Kua predicted that reaching an agreement on the country's first offshore oil project would take some time. “(Project) still under negotiations,” he said. “Generally, it could take a few years to negotiate an agreed position. Once in a while, it takes less time. Patience is important to all sides.” Twinza has previously stated that the talks were over the fiscal terms for the construction of the gas-condensate field in the Gulf of Papua. “The company is committed to working collaboratively with the Government to deliver an agreement that allows the project to move forward toward development, while providing a higher state take than previous projects,” country manager Roppe Uyassi said. “Once the Pasca A gas agreement and the petroleum development license are in place, the project is well-positioned to enter the front-end engineering and design phase later this year.” Twinza was also excited to discuss significant non-financial prospects with the SNT, such as domestic business commitment, third-party access to infrastructure, and national material. “These matters were differentiated from land-based projects as Pasca A field is planned to be the first offshore development in PNG.” Meanwhile, according to company records, Twinza's main asset is the offshore Pasca A liquids-rich gas field. The Pasca A field development plan had been completed, the petroleum inventory had been approved, and the program to receive full-field development licenses had been completed. The Pasca A development will become the country's first offshore field development after all requisite government approvals are issued.
PNG Business News - December 21, 2020
Kumul Petroleum Hopes to Work with Developers of Papua LNG Project
Kumul Petroleum Holdings Ltd (KPHL) hopes to work with the developer of the Papua LNG Project and its partners.According to Managing director Wapu Sonk, KPHL hoped to work with Total and the Papua LNG joint venture partners to start the front-end engineering design work and begin the liquefied natural gas (LNG) financing and marketing work.It can be recalled that Petroleum Minister Kerenga Kua has said that an announcement would be made where the Papua LNG Project would be a stand-alone project towards next year’s design phase. He said that a meeting would be held between the government and the Total senior management this month. “If the decision is made, it will be positive for PNG because we will begin to see some early work going on,” Kua said.The country’s national gas and oil company, KPHL is in charge of managing the State’s 16.57 per cent equity in the ExxonMobil operated US$19 billion (K64.91 billion) PNG LNG project. This has allowed the firm to become the third-largest player in the largest single investment made by the country. Sonk added that even with this pandemic, there had been no material impact on the project and its operations, besides a few delays in various areas. “PNG LNG project performed very well in terms of LNG production,” he said. “The main challenge has been LNG prices, which has been very low in Q1 to Q2 and in the third and fourth quarter, the prices have improved to approximately US$6.40 to US$7.50/MMbtu (K21.98 to K25.76 million British thermal units) from as low as US$2.40/MMbtu (K8.24/MMbtu) early this year. LNG and oil price has impacted all the joint venture partners and us at Kumul Petroleum as well as with MRDC (Mineral Resources Development Company), no exception. PNG Government also is impacted as a result.He said, “We hope that the oil and LNG prices will recover and be stabilised given there is now a vaccine for the Covid-19. ExxonMobil maintains the great job in optimising and improving production in a safe and environmentally friendly manner.”Sonk added that KPHL paid K200 million as dividend due to better cost commodities last year. “We have been able to continue to train Papua New Guineans at the Kumul Petroleum Academy, deliver cheap and reliable power into Port Moresby through NiuPower, delivered the rural electrification programme mostly in Hela and Southern Highlands connecting Nipa to Tari, Tari to Koroba and Tari to Hides (Juni) and Ialibu to Kagua,” he said.
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PNG Business News - May 13, 2021
National Airport Corporation to Focus on Redevelopment Projects
The National Airports Corporation plans to devote more resources to the redevelopment projects at Kavieng, Tari, and Mendi airports as part of the Civil Aviation Growth Investment Program. With the exception of three airports, all airports under the CADIP program are on a budget, according to NAC acting managing director Rex Kiponge. Apart from Jackson Airport in Port Moresby, Kiponge claims that the majority of the country's airports are unable to handle the newly launched F100 aircraft. “The introduction of F100 aircraft has deteriorated the condition of runways in PNG. Under CADIP, fencing and runway length deficiencies will now meet the F100 and ICAO requirements. CADIP was implemented to meet the minimum PNG Civil Aviation Rules (CARS) and the International Civil Aviation Organisation (ICAO) standards and recommended practices in all the 22 airports in the country. “The F100 aircraft require a minimum runway length of 1900 metres –– only three airports meet this requirement.” The F100 will be able to land at 12 airports thanks to a CADIP runway length upgrade. Port Moresby is now the only province that meets the operating criteria for F100 planes. Standby control, security fencing, apron parking, runway, taxiway, and apron strength, and a runway length suitable for takeoff at maximum payload are all part of the 22 airport upgrades. Kiponge recently visited the three airports and expressed his satisfaction with the development. Contractors have already finished construction on the security fence at Kavieng Airport, and work on the runway extension is going well. Once the runway extension is complete, the contractors can begin work on the terminal. He mentioned that the runway extension at Tari Airport is complete, and contractors are currently working on the apron, which will be finished until the runway extension is completed. Owing to the contractors' inability to obtain materials for the runway at Mendi Airport, NAC has requested that they redo the runway before moving on to the other areas. “Despite whatever issues within NAC, I will ensure that all 22 NAC’s airports undergoing upgrading will be completed and I will put in a lot of efforts and focus to makes certain work is done well and completed,” Kiponge said.
PNG Business News - May 13, 2021
Govt to Focus on Downstream Processing
The government is putting a lot of effort into encouraging downstream production in the region. This was said by Prime Minister James Marape during a visit to Paradise Foods Company Limited. “We are focused on downstream processing as far as going forward is concerned –– instead of exporting raw products,” said Marape. “We want to go downstream to satisfy our local markets as well as export to economies around us.” PNG is fortunate, according to Marape, to have access to 60% of the world's gross domestic product (GDP) through the APEC network. “As well as, not just the APEC network, but in the vicinity of PNG’s accessibility to markets, we have over 4 billion people from the Pacific, Northern Asia, Western Asia and Northeast Asia put together. “So to satisfy our local markets in PNG for our 8 million-plus people, as well as the opportunity of exporting to markets closest to us like our neighbouring countries.” Marape has stated that he supports downstream production and marketing of PNG's natural resources both locally and internationally. “Today, I am privileged to visit an industry that has been at work since 1945, and I’d like to thank Paradise Foods Company Limited for doing a wonderful job and feeding our country.” Marape promised that the government will help the industry and market.
PNG Business News - May 13, 2021
Mayur Discusses Power Plant Project in Lae
Mayur Resources Ltd says it has formed an ongoing relationship with the State negotiation team to discuss and finalize a power purchase agreement (PPA) for its planned power plant in Lae, Morobe. The organization was waiting for the State negotiation team's makeup to be finalized and signed off, according to managing director Paul Mulder. After that, he said, the Enviro Energy Park (EEP) project's final discussions and negotiations will begin. Mayur's planned 52.5-megawatt EEP project is an advanced power plant that will produce more efficient and cheaper electricity than current solutions by combining conventional thermal energy (sourced from the company's wholly-owned Depot Creek project), solar, and biomass woodchip, while also supplying co-generated steam to nearby industrial users who were burning diesel for their steam needs. The EEP, which is near Lae, will also have steam as a by-product for local industrial uses, and potential dual fuel systems will allow for the use of diesel. “The energy park would balance the need for new environmentally friendly technologies and reliable energy,” Mulder said.