According to Santos Executive, Angore Development is a Plus for PNG
by PNG Business News - June 06, 2022
Photo credit: Santos
Santos is in a strong position with the announcement of the next tranche of backfill gas to maintain PNG LNG production and the final investment decision on the Angore Development project.
According to Brett Darley, Santos President Upstream Oil and Gas, who spoke at the recent Australia PNG Business Forum in Brisbane, the first gas from Angore is expected in 2024, and Santos' share of capital expenditure would be around US$135 million (K475.3m).
On the tail of a worldwide epidemic, he added, these drilling efforts will be a huge boost for the sector and economy, as Santos looks to expand its resource portfolio.
“In addition to progress being made on the Angore Development project, we have seen strong performance from the Agogo and Moran fields.
“A coiled tubing campaign commenced in the fourth quarter of last year in those fields, which will deliver incremental production in 2022,” he said.
“Papua LNG, a project that has the potential to be nation shaping for decades to come, continues to progress technical and commercial, regulatory, social, and environmental activities.
“These pre-FEED activities remain on track in support of a FEED-entry decision that is targeted to be made by the end of this year.”
Mr. Darley stated that, given the present supply shortage in the global LNG market, initiatives like Papua LNG are becoming increasingly important for global energy security and affordability.
“We are continuing to work hard with our joint venture partners to progress this project which will create local jobs in Papua New Guinea, drive economic development, and create revenues for the government.
“The other growth project that we are working hard on is P’nyang, with the P’nyang Gas Agreement being successfully executed between the PRL3 joint venture partners and the PNG government earlier this year,” he said.
“We are working hard on the integration of the Oil Search business, on delivering on our commitments, and on ensuring the growth project and opportunities that are so important to PNG to continue on schedule and on budget.”
Reference: Post-Courier (1 June 2022). “Angore Development A Plus For PNG, Says Santos Boss”.
PNG Business News - February 15, 2021
PM Says LNG Project is Moving in the Right Direction
After the signing of the fiscal stability agreement, Prime Minister James Marap said that the Papua LNG project is going in the right direction. He gave confidence to the investors that PNG has an active democracy. “We appreciate very much that this project has now been moved,” he said. “The Government will ensure that all necessary support is procured for this project to be moved as our project developer moves into the FEED phase. Our country is moving into exciting years ahead. Let me sound this out to our investors: Today is a testament to what democracy in PNG is all about, irrespective of the politics that is at play. Our economy is in a very vibrant democracy. Our rule of law prevails, our judiciary always presides over matters that are in conflict. Our country has not terminated any project agreement during the life of the contract.”Apologising to investors that the government had caused them too much stress, he said, “The Government provides the social licensing, provides the security also. It needs to ensure that all ticks that need to be ticked are ticked, with respect to the laws that we have.”
PNG Business News - February 15, 2021
Oil Search Happy with Papua LNG Progress
Oil Search Ltd is happy to see the progress of the US$12 billion (K41.38 billion) Papua LNG project.According to Oil Search managing director Dr Keiran Wulff, “We are pleased to see further progress achieved on the Papua LNG. This milestone highlights the commitment from the Government towards Papua LNG and is a significant step in de-risking the project. It also demonstrates increasing alignment between the Government and the joint venture partners. We look forward to progressing the Papua LNG and announcing further milestones consistent with our strategic review announced last November.”Total, the operator of the project signed the agreement - together with ExxonMobil and Oil Search - signed an agreement with the government early this week. This is seen as a final step under the Papua LNG gas agreement to proceed with the project fiscal stability. Total managing director, meanwhile, Jean-Marc Noiray said that they welcome the “whole stabilisation of the project”.“The Feed (front end engineering design) itself will last between 15 and 18 months, from the moment we reach the final investment decision,” he said. “And from final investment decision to first gas, we have about four years of construction. It’s a long journey before we get to the first gas, and the first revenues for the developers and the country.”
PNG Business News - February 26, 2021
Oil Search Shows Strong Performance
Oil Search has brought a strong financial year in 2020 with a core net profit after tax of US$22.0million (K77m), also reported to a full-year production of 29.0 mmboe and the strongest safety performance since assuming operatorship in 2003.The financial results were significantly lower realised hydrocarbon prices in 2020 as compared to 2019, which resulted in a full-year net loss of US$320.7 million (K1.1bn). This includes a post-tax impairment charge of US$260.2 million (K908.7m) that had been recognised in the interim financial results.For managing director Dr Keiran Wulff, “Oil Search emerged from 2020 stronger and more resilient as a result of its response to the Covid-19 pandemic, demand collapse and oil price downturn. Despite the material challenges, Oil Search achieved three important records for the year. The first is the strongest safety performance in PNG since becoming the operator of the PNG oil fields in 2003, with a total recordable incident rate of 0.78 per million hours worked, and no Tier 1 process safety events.”According to Wulff, the second is the strongest production reliability from its operations in PNG since the 2018 earthquake and, the delivery of record annual production from the PNG LNG project.He said that the company brought down some decisive actions. “We also undertook a major strategic review to prioritise activities and capital spend for a low carbon future,” he said. “This resulted in streamlining our portfolio and incurring a non-recurring, post-tax impairment charge of US$260.2 million (K908.7m). We are a more focused, leaner and lower cost resilient business in a strong position to commercialise our world-class resource base and leverage the oil price. We will continue to focus on maximising operating cash flow and delivering material growth projects which will be underpinned by resilient operations and disciplined capital management. We have set up a dedicated transformation team to embed a high-performance culture across the business.”
Place your Ad Here!
PNG Business News - June 24, 2022
Creating decent income-earning opportunities for rural communities in Papua New Guinea under road maintenance programme
EU Funded UN Joint STREIT PNG Programme, as part of its mission to support efforts towards reducing rural poverty, is engaging local communities with a focus on struggling single parents as a support workforcefor maintenance of 18 selected farm-to-market roads in the Sepik region. Led by the International Labour Organization (ILO), the creation of these employment opportunities in remote communities where there are limited income-generating activities because of lack of accessible roads to markets is a relief to many disadvantaged households. This month the ILO team visited some of these beneficiaries who are employed in the Road Maintenance Groups (RMGs) working on a 17.7km-long Walkasa Mai-Wanwan road and an 8km-long Yiminum-Wilbowe road in the Nuku District of Sandaun Province. For the beneficiaries, this is a lifetime opportunity for a regular and steady income to support their and their families' everyday needs, and one important concern for the struggling families is paying for their siblings' and kids' school fees and associate costs. Among the struggling families are some widows like Marathia, aged 59, from Yiminum Village, who works on the Yiminum-Wilbowe road. "My husband died, and we were really struggling because our families have their own problems to take care of. Now, I'm very happy with this job which I joined last year. It helps with school fees for my children," said Marathia. Marathia was left with five children to support, including one who is attending final year studies at a vocational training nearby. With the income as an RMG, she was able to pay PGK 500 school fee last year and early this year she paid PGK 250. She said the community is also happy to see her contribution in a job they usually see as for men only. For youths like Jena Suwa this employment opens a new window to their life. She was not able to complete her studies after year 10 in 2018. "I'm very happy today because I was doing nothing in the house. I will now save some money to prepare to go back to school to become a nurse," said Jena. Sony Apo is another youth who completed Grade 8 in 2015 and is looking forward to some money to upgrade. He dreams of becoming a carpenter to continue the legacy of his late 'big daddy'. "Big daddy was the only skilled man we had in the family, and now I'm ready to become a carpenter as well," he said. The main works that encompass the road routine maintenance aspect to be undertaken by the RMGs include pothole patching, vegetation clearing, drainage and general cleaning along the road in preparation for engagement of a contractor to perform specific maintenance on these farm-to-market access and feeder roads. Safety gears and road maintenance tools like boots, gloves, vests, safety helmets, spades, hoes, wheelbarrows were also among the tools and equipment provided and distributed by the EU-STREIT PNG Programme among the RMGs' members. During the visits, the Programme's Community Facilitator, Rachel Bowie also shared with the RMGs to demonstrate commitment in their work to take ownership in the routine maintenance of these roads because it will serve them, their families and their fellow community members. The mission also conducted a drone survey of a 14km-long Nanaha-Tau LLG access road in the Ambunti-Drekikier District, East Sepik Province. In consultation with Ward Members, locals, including youths and women, were also recruited to form RMGs to conduct routine maintenance for this road that will also service Drekikier Secondary. Under the Programme selection criteria, one RMG comprises six members that must have at least two females. The group must also have representation from youths, single parents whose partners have died or have deserted them and traditional owners of land the road passes through. The Programme, in partnership with MiBank, a local financial institution, is implementing cashless transactions and banking for rural farmers by opening bank accounts for these RMGs, and their payment is deposited directly at the end of every month. This arrangement encourages rural farmers to save and grow their earnings, which can be used to access small loan benefits. Under this rural agriculture development programme, 18 rural roads in the Sepik region totalling close to 300 km in length are being maintained or upgraded with the help of RMGs to support the market access initiative implemented by the EU-STREIT PNG Programme for rural and farming communities to boost agriculture production and agribusiness activities pertaining to three targeted cocoa, vanilla and fisheries agri-food value chains for an improved income and cash flow for the rural communities. The roads will also support other agricultural, business, social and community activities and facilities like schools, aid posts and health centres that are in dire need of better accessible roads. The EU-STREIT PNG Programme, being implemented as a UN Joint Programme (FAO as the leading agency, and ILO, ITU, UNCDF and UNDP as partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. The Programme aims to help improve the lives of the people from East Sepik and Sandaun provinces, by focusing on increasing sustainable and inclusive economic development of rural areas through improved economic returns and opportunities from cocoa, vanilla and fishery value chains while strengthening and improving the efficiency of value chain enablers, including the business environment, and supporting sustainable, climate-proof transport and energy infrastructure development.
PNG Business News - June 24, 2022
Santos welcomes new apprentices in higher-level program
Photo: Leon Buskens, Santos Country Chair PNG meeting the 25 new apprentices in Port Moresby before their departure to the Institut Teknologi Petroleum Petronas (INSTEP) in Malaysia. Joining Mr Buskens and the apprentices are members of the Santos Training and People & Culture Teams. Santos is helping to equip Papua New Guinea’s next generation of oil and gas technicians with international qualifications. Ten females are among 25 novices who have joined the Santos 2022 Apprenticeship Program following a rigorous selection process which will see them train at the Institut Teknologi Petroleum Petronas (INSTEP) in Malaysia – 900 applications were received for the 2022 Program. Upon completion of the technician training at INSTEP, the apprentices will earn a Pearson Business Education Technology Council Level 2 and Level 3 UK qualification. Santos Country Chair for PNG, Leon Buskens when welcoming the apprentices, said: “You have joined at an exciting time following the merger between Oil Search and Santos. As the inaugural batch under the merged entity, there are greater opportunities for you to advance in all aspects of your career both in PNG and abroad. I encourage you to do your best and importantly, maintain a positive attitude and uphold your values - this is what will take you far on this journey. “This is the beginning, but you should be proud of yourselves as we are of you for making it this far. Congratulations and welcome to Santos.” Joining Mr Buskens to address the new cohort were pioneering trainees Cornelius Soagai, Senior Government Affairs Manager and Lydia Warubi, Deputy Occupational Health & Safety Manager. Mr Soagai went on to become the first national Production Manager in the Operations and Maintenance Department while Ms Warubi made waves as the first national female process technician to work at the Central Processing Facility. Both leaders encouraged the apprentices to maximize on the career development opportunities available to them at Santos. Among the cohort was Judy Sasa who completed the Company’s pre-apprentice program at the Kumul Petroleum Academy (KPA) in 2020. Judy finished at the top of her class and attained an honourable achievement award. A grateful Judy thanked Santos for a further opportunity to broaden her knowledge in oil and gas production. “My dream is coming true as I have always wanted to work in this industry,” Ms Sasa said. The 25 apprentices along with the Santos training team departed PNG for Malaysia last weekend. Two permanent employees were also part of the travelling party to INSTEP where they will train to become dual Electrical & Instrumentation tradesmen. Article courtesy of Santos
PNG Business News - June 23, 2022
PM Marape says East Sepik can become ‘economic powerhouse’ of PNG
Photo: PM Marape addressing the crowd in Maprik Prime Minister Hon. James Marape says East Sepik has the potential to become the “economic powerhouse” of Papua New Guinea. He said in Maprik recently (June 22 2022) that because of this potential, and in memory of founding Prime Minister the late Sir Michael Somare, the next Government would be formed in East Sepik. Present with the Prime Minister were East Sepik Governor Hon. Allan Bird (National Alliance), Angoram MP Hon. Salio Waipo (National Alliance), Maprik MP and Minister for Agriculture and Livestock Hon. John Simon (Pangu) and Pangu candidate for Wosera-Gawi Ronald Asik. Sir Michael was instrumental in the formation of both Pangu and National Alliance “East Sepik has the potential to become the ‘economic powerhouse’ province of our country,” PM Marape said. “This is why I will bring Government formation to here: Firstly, in memory of Sir Michael, and secondly, in memory of Sir Pita Lus. “This will be the 11th Parliament, and the first Parliament without Sir Michael and Sir Pita being alive. “This will be symbolic that the nation is now being passed on to the next generation.” PM Marape said formation of the new Government in East Sepik would also inspire the new generation of leaders to hold on to the lofty ideals of the founding fathers like Sir Michael and Sir Pita. He said his Government, over the last three years, had passed major laws to fight corruption and promised the people of Papua New Guinea that some prominent leaders would be prosecuted after the elections. These include the Independent Commission Against Corruption (ICAC), Whistle Blowers’ Act and Undisclosed Wealth Act. “What would be the point of Allan Bird and I growing the economy of the country when corruption is still prevalent?” PM Marape said. “We have managed to stifle corruption in the big way with passage of the three bills during the last term of Parliament. “Over the last three years, we have spent over K56 billion, which has grown the economy by K30 billion.” PM Marape said East Sepik’s economic powerhouse potential was in agriculture, through the vast Sepik Plains, and challenged the province to start growing rice on a large scale to reduce the huge K900 million rice import bill. “Over the next few years, and into the future, we want to grow our own rice for domestic consumption as well as export to Phillipines, Indonesia and the rest if the region,” he said. “Sir Michael, before his passing, said he had helped groom me up and asked me not to forget East Sepik into the future. “The way to achieve this is through economic independence. “I want every Papua New Guinean to have money in their pockets: Grow rice, grow cocoa, grow vanilla, look after cattle, bring in tourists, stop consumption of home brew, stop marijuana and other bad habits. “We are ready to take the country to the next level. “I want East Sepik to be an economic powerhouse no longer dependent on Waigani. “This is why I ask the people of East Sepik to send Allan Bird, John Simon, Salio Waipo and my Wosera-Gawi candidate Ronald Asik, Ambunti-Dreikikier candidate Richard Rafa and Wewak candidate Jim Simitab to Parliament. “ Article courtesy of PM JAMES MARAPE News Page