Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Friday, 29 March 2019

Late Simon Korua's journey as a businessman mirrors the growth of a nation's economy

PAPUA New Guinea's Highlands Business magnate Simon Korua (1957 – 2014) was born in the stone-age of the highlands of Papua New Guinea and would live through the space age and into the advent of the internet. 

His story in many ways mirrors the journey PNG as a nation and her people have taken from being bare-breasted, loin cloth wearers to a rising economic and political power in the Pacific.

Born from a bloodline of battle-hardened warriors, the cold crisp air of the highlands of Papua New Guinea wouldn’t dampen the spirits of bare chested highlands boys who caddied at the old Mount Hagen golf course.


His story in many ways mirrors the journey PNG as a nation and her people have taken from being bare-breasted, loin cloth wearers to a rising economic and political power in the Pacific.

Born from a bloodline of battle-hardened warriors, the cold crisp air of the highlands of Papua New Guinea wouldn’t dampen the spirits of bare chested highlands boys who caddied at the old Mount Hagen golf course.

In 1971 whilst in grade six Simkor would caddy at the golf course. He and his cousin John Kupp would sometimes sit and admire a Range Rover owned by Peter Howard, a coffee plantation owner. 

One day, Simkor’s curiosity got the better of him and he decided to physically inspect the Range Rover as his mates watched.

Howard spotted Simkor touching the Range Rover. He and his mates immediately received an earbashing. This event would send ripples through his psyche and shape his destiny. 

Affected by the scolding, Simkor told John that one day when he became a multi-millionaire he would buy a red Range Rover. Even as a teenager, he was specific down to the minute detail about what he wanted in life.

The question now remained as to how he would become a multi-millionaire and buy a red Range-Rover.

Simkor understood one thing; education was the key to success. Whilst this may sound like a cliché to many contemporary Papua New Guineans, it was a revolutionary insight for a teenage boy in primary school during the 1970s, having come from a remote part of the Western Highlands Province,.

Simkor’s people had just under 20 years of interaction with western civilization. His people had in some sense just returned from the Great Highlands-Sepik patrol that colonized the final frontiers of the Highlands of Papua New Guinea in the 1950s and were settling into colonial rule under the Australian administration.

“Education will take us across the mountain ranges to Kagamuga airport,” he once told his friends. Many didn’t understand his “Tok Pisin blong Hagen” (figure of speech). But there was a sense of urgency in his prophetic voice. 

What he meant was that education would help them to one day fly out of Kagamuga to opportunities beyond the blue mountain ranges of Mount Hagen.

In 1972 he attended Fatima College (Fatima Catholic Secondary School today) and completed Form II (grade 8) the following year. In 1974, a year before the Bird of Paradise would fly on the flag poles of a new nation; Simkor would fulfil his own prophecy of flying out of Kagamuga airport. 

He flew to Port Moresby, the emerging capital of a new nation where he would do Forms III & IV (Grades 9 and 10) at Idubada Technical College (known then as POM Tech ).

The fact that Simkor had chosen this route highlights once again his sense of urgency. There wasn’t much time with-in which he could achieve his dream of being a multi-millionaire. Whilst at technical college he also took up additional courses in accounting and business studies.

Following technical studies he landed a job with Dunlop in Lae. Those who visited him at the his flat recall distinctly how frugal he was. In his fridge were only three items – a can of bully beef, packet of long grained rice and water. He was a man on a mission and was very conscious about his spending.

A few years later he left Lae and joined the Commonwealth Bank in Mt Hagen. By now he had established a small trade store in his village trading as Simkor Trading. 

And by the late 1970s Simkor moved into trucking initially beginning with one truck then growing the fleet to 10 vehicles.

There was a certain discipline and business sense that Simkor had that his peers admired. Whilst in the trucking business, for instance, he drove one of the trucks himself and set a very high standard for the drivers he employed.

On one occasion, cousin John hitched a ride with him from Lae to Mount Hagen. As they drove along the dusty highlands highway, John hoped that they would stop at Kundiawa or Goroka to take break and have a bite.

Simkor instead drove past the towns and stopped instead at Kainantu where he bought two bottles of soft drinks and two tinned cake rolls. John wasn’t impressed and later as they drove on asked him why he had done so.

Simkor’s reply was perhaps a good-lesson for many aspiring Papua New Guineans to reflect on.

Firstly, he didn’t want to be stuck in a queue at a shop in Kundiawa or Goroka. This was a waste of time and time was money.

Secondly, he didn’t want to be caught up in debates with stranded wantoks looking for a free ride or free handouts.

Finally, stopping at Kainantu meant he didn’t have to deal with delays and wantoks and also he could build a business relationship with the lone trade store owner who had customers few and far between.

Post 1979 he had established several companies including Simkor Didiman Supplies, Monpi Coffee, Simkor Engineering, Maps Tuna, Chemica Chemicals, New Guinea Energy and Spectra Industrial.

By the mid-1980s Korua had made his millions and was purchasing property in Queensland. He introduced several PNG investors to a strip of land in Gold Coast which now bears the name Mt. Hagen road. He had sold his trucking business and moved into selling chemicals and agriculture supplies.

By the 1990s Simon built a magnificent mansion back in his village, Tondmong. Even to this day, many believe Simon’s mansion in his village remains an unrivalled piece of architecture comparatively for rural PNG.

In 20 years he had gone from a penniless mountain boy to the peaks of economic power in the country. Simon then set his eyes on National politics, contesting the 1992 and 1997 general elections.

He also bought himself a red Range Rover signifying his coming of age as an economic powerhouse in PNG.

Simkor Didiman Supplies became a household name throughout the highlands and to this day many would remember the trademark Simkor stockfeed bags.
Simon’s entry into politics was about public service. 

He had already become a successful multi-millionaire – a self-made man. What he saw through politics was the potential to empower and uplift many Papua New Guineans.

His lack of success in entering politics didn’t deter him from actively engaging in party politics, first under Wingti’s People’s Democratic Movement(PDM) and recently with the ruling People’s National Congress(PNC). 

We see Simkor’s han mak (legacy and influence) in how the PDM and PNC governments have pushed for universal primary education.

In his own way he also wanted young Papua New Guinean to make the proverbial journey to Kagamuga. Education was in his opinion the enabler of opportunities for those who were hungry for success.

Simkor developed a diverse investment portfolio. He held various directorships in Air Niugini, The National newspaper, Barclay Bros, New Guinea Energy and Pacific Capital.

At the time of death he was a director of several companies including Bowmans Glass, Monpi Coffee, Chemica Chemicals, PNG Microfinance, and MRDC.

Underlying his success was a visionary man with the discipline to realize his dreams through wise spending and saving, time management and hard work. 

He was always conscious about time realizing how little time there is to do everything. In some sense he had mastered the western concept of linear time and the sense of urgency associated with that as opposed to the Melanesian world view of circular time. 

This indeed may be important lessons for those who wish to emulate Simkor.

*Eagles Times magazine wishes to acknowledge the generosity of Mr John Kupp in providing information for this article. John is Late Korua’s first cousin and has business interests in Lae and Mount Hagen. He is also a Pastor with PNG Christian Fellowship.
____ ______
Extracted from Eagle Times Magazine.






The legend and multi-millionaire late Simon Korua's self made PNG success story from Nenga Tribe just outside Mt Hagen to built and lived in this beautiful Spanish style mansion in his village. 

Probably the best PNG property even today in a village setting. 

The landscape and its setting perched on top of the plateau overlooking Nebilyer valley to Southern Highlands with towering Mt Giluwe in the distant front and the imposing Mt Hagen in the background in this montage forestry backdrop and high altitude grassland is magnificent.

The lush green lawns and rose garden are the main attraction. 

This is what our politicians can emulate in their own villages instead of wasting good money building overseas.

It is at Late Simon Korua's home village Tondmong. Photo courtesy of Tom Kotupi.





Thursday, 1 September 2016

Former Prime Minister Sir Micheal Somare implicated in Singapore laundering case

FORMER Prime Minister Sir Michael Somare has been implicated in a money laundering case in Singapore.

The Straits Times reports that in 2010 a married couple laundered US$3.6 million which had been meant to set up community colleges in PNG - then gave US$784,000 of it to Sir Michael, the country's prime minister at the time.

Singaporean woman Lim Ai Wah, was given five years' jail while her American husband, Thomas Doehrman, got five years and 10 months - both found guilty on falsification of accounts and charges of transferring the benefits of crime.

Doehrman had been the trustee of a fund set up by the PNG government to set up community colleges in the country.

In their police statements, Lim and Doehrman said bribes had to be paid to Sir Michael in order to get business from PNG.

Deputy Public Prosecutor Alan Loh said the fact that some of the laundered money was traced to Sir Michael's bank account in Singapore will cause public disquiet.


Sir Micheal Somare.

VIDEO: Papua New Guinea's founding father, Grand Chief Sir Michael Thomas Somare, tells of his great journey towards PNG's independence in 1975.  He recalls vividly those present during that time, and Sir Michael is pleased with achievements of the country, since independence. 
Source: Radio New Zealand

Friday, 26 August 2016

Special Mining Lease Application submitted for the Wafi-Golpu project

by PETER KINJAP

PAPUA New Guinea's Wafi-Golpu Joint Venture has submitted an application for a Special Mining Lease (SML) with the Mineral Resources Authority (MRA).

Project Director Bryan Brailie said the lodgment sees a crucial milestone in the progressing the Wafi-Golpu Project.

“We look forward to work with the government, landowners and other stakeholders,” Mr. Braillie said.

The application follows the review earlier this year by the Board of Directors of both Newcrest Mining Limited and Harmony Gold Mining Company of a project feasibility study and pre-feasibility study.

The SML application includes a proposal for development, which incorporates the feasibility study report and supporting documents such as a national content plan, which underpins land ownership study, sets out the proposed approach to workforce and supplier development and community investments including potential employment and local business opportunities.

It is anticipated that, if developed, the project will make a substantial positive impact to Papua New Guinea’s economy at both a national and provincial level. It will be the first major large-scale resource project in the Morobe Province since the Hidden Valley mine commenced operations in 2009.

"The Landowner communities would benefit from royalty streams, compensation and community development projects which focus on skills development, local business opportunities, agribusiness, health and education. Key milestones An Environmental Impact Statement is being prepared for the Project and is expected to be lodged with the Conservation and Environment Protection Authority (CEPA) in the near future," the statement said.

Any future development of the Project will be subject to the grant of an SML and obtaining all other necessary permits, approvals and agreements required from the Government, landowners and other stakeholders, and ultimately approval by the Board of Directors of both Newcrest and Harmony.

The Wafi-Golpu deposit is located approximately 65 kilometres south-west of Lae in the Morobe Province of PNG. Lae is the second largest city in PNG. Newcrest and Harmony each currently own 50% of the Wafi-Golpu Project through the WafiGolpu Joint Venture. The Independent State of Papua New Guinea retains the right to purchase, at a price pro-rata to the accumulated exploration expenditure, up to a 30% equity interest in the Wafi-Golpu Project, at any time before the commencement of mining. If the State chooses to take up its full 30% interest, the interest of each of Newcrest and Harmony will become 35%.

Executive team with the document for submission.

Wednesday, 17 August 2016

Leaders continued to mislead money as a catalyst to address issues, Parliament told.

Parliament was told that leaders continued to mislead themselves with a perception that money was a catalyst for addressing issues the resource owners had been advocating for.

Opposition Leader Don Polye today in Parliament debated it otherwise when arguing on a paper presented by the Prime Minister Peter O’Neill on increasing equity share for resource owners, especially in the Bougainville Copper Mine Limited.

Mr Polye has called on the Prime Minister and his government to learn about the real issues the resource owners have been fighting for.

“They never ask for money. They were talking about their environment and livelihood. Let us learn from the history and guide the future.
“Because President John Momis has come out against the equity share so are we quickly coming up with equity thing here to make him and his people happy? This is not the issue. They are talking about their economy, integral human development and livelihood,” he said.

Even if their resource ownership equity share is increased, he said, integral human development issues will still be outstanding.

“Have we delivered the MOU funds of K100 million annually to the people of Autonomous Region of Bougainville? Let the ABG run and manage its own affairs. Don’t use them like robots from Waigani. Let us talk about their MOU grands which have not been committed to them before talking about equity.

“Let us not do it for them. Let them do it themselves. I don’t see a unity among the ABG MPs in PNG Parliament and the ABG government as the Prime Minister has only resourced the MPs the latter at the expense of the ABG,” said Polye.

Meanwhile, Mr Polye said the resource owners in Hela and Western provinces have not also advocated for the release of their royalties or their equity share.
“No, they haven’t. Money is always there. It is not an issue. They have been fighting about their environment destruction. There is more to it than meets the eyes.

“If we continue to mislead ourselves with money being the solution to all the issues, later we will find out that the problems which we thought we have solved already, are still there,” he said.

He said the future leaders would learn that their leaders today had not solved the real issues but they had only created additional ones for them.

“When we strive for empowerment of our people through resource ownership, we must also address their issues customarily, environmentally and economically. This is the way forward,” he said.
Opposition Leader Don Polye.
Source: Media Release / PNG Opposition Team / 2016

Air Niugini name Forker 70 Aircraft "ALOTAU" to boost tourism

 AIR Niugini in a ceremony today named one of its Fokker 70 aircraft as 'Alotau'.

The aircraft is the third of the total nine F70 aircraft expected to be delivered to Air Niugini by 2017. The first aircraft was christened Mt Hagen, followed by Hoskins and now, Alotau.

Air Niugini Board Chairman, Sir Frederick Reiher in his address said the name Alotau is in recognition of the important role being played by Alotau and MilneBay in terms of tourism development.

He said MilneBay Province is developing into one of the main tourism hubs in the country and Alotau is an important port in Air Niugini’s operation.

Sir Frederick said “ Our services to Gurney airport are well supported by the people, and the businesses of the Province and increasingly by tourists from within Papua New Guinea and overseas, who want to experience the outstanding tourism adventures MilneBay offers.”

He added Air Niugini appreciates that support and will continue to help, meet the travel needs of the province. Air Niugini operates daily flights into Gurney airport, that’s a total 7 flights per week.

Apart from that, there are regular cruise ship visits to Alotau, which are now a regular feature of the growing tourism industry of Milne Bay province, with thousands visiting annually

Sir Frederick thanked the Minister for National Planning and Member for Alotau, Charles Abel for the strong political support for Air Niugini’s regional operations, particularly the subsidizing of the second Japan service and the proposed seasonal flights between Alotau and Brisbane.

A Fokker 70 aircraft is faster, more efficient with superior passenger comfort and will enable Air Niugini to improve domestic services to key regional centres.

Air Niugini so far has a total 25 aircraft in its fleet including Boeing aeroplanes, Fokker 100s, Q400s and now the F70s. Air Niugini leases 7 Dash 8 aircraft to its subsidiary company, Link PNG.

Sir Frederick together with Minister Abel, MilneBay Governor Titus Philemon, Minister for Tourism-Tobias Kulang, Air Niugini CEO Simon Foo and other invited guests proceeded to the air site where they did the unveiling to mark the christening of the aircraft. 




Source: MEDIA RELEASE / Corporate Affairs Department / Air Niugini
Wednesday 17th August, 2016

Sunday, 14 August 2016

Air Niugini and Nambawan Supper enter agreement to improve frequent flyer discount program for NSL members

IT's a good news for 160,000 members of Nambawan Super Limited (NSL) - they can now enjoy greater discounted airfares, thanks to a joint partnership with Air Niugini.

The two organizations recently signed a two year agreement from July 2016 to July 2018 which enables contributing NSL members up to a 15 percent and members of the Retirement Savings Account (RSA) , 45 percent discounted air fares on Air Niugini.

Air Niugini General Manager, Customers and Markets Dominic Kaumu who was present for the signing said the discount fares apply to both ANG’s domestic and international routes and allow NSL members the chance to travel on affordable airfare fares.

He said “ Most NSL members are public servants who have contributed a lot to the development of this country therefore, Air Niugini sees this as an opportunity to help these people to continue to travel after retirement as well as the contributing members.”

The discount fares are a special fare so NSL members are urged to preplan and purchase tickets in advance to take advantage of the discounts. 

Members intending to purchase tickets within 3 days before departure may lose out on the offer as Air Niugini has regulations and internal policies it needs to comply with including balancing loads and managing yields. Therefore, it is best that NSL members enquire about the discounts, make bookings and purchase tickets a week or more in advance of departure dates.

Members seeking discounted air fares have to comply by showing their valid NSL ID cards, members’ statements listing their beneficiaries, and valid ID cards for beneficiaries such as passports, acceptable by Air Niugini to utilize the discounts.

NSL’s Chief Manager Member Services, Charlie Gilichibi on behalf of Nambawan Super members acknowledge Air Niugini Board and Management for the generous discount offer.

He said “Our RSA members will be delighted to know they can now fly using their retirement savings. In many cases their RSA account is the Member’s only source of money, so having access to special offers like Air Nuigini’s 45% discount can make a real difference in their retirement.”

Gilichibi said, “ The discount agreement also caters for 4 beneficiaries indicated on the Nambawan Super database. Nambawan Super members need to ensure they update their BIO DATA with the Fund to take advantage of this enhanced discount offer.”

He also explained that the members’ eligibility based on their classification either under Retired Senior Citizens and Contributing Members and that the discounted airfares are based on specific fare basis, which have conditions applied.

Nambawan Super will be staging member conferences to educate members on the new and revamped discount offer from Air Niugini. 


Air Nuigini's Coporate Affairs and NSL staff at the signing of the agreement. Image: Supplied.

Source: Air Niuigini's Corporate Affairs Department / Media Release/2016 

Saturday, 13 August 2016

MRDC's meeting with disgruntled landowners to review their petition did not go down well: Meeting to be continued tomorrow.

THE PNG LNG landowner's petition for PDL 1 landowners have been reviewed yesterday in a meeting chaired by Mineral Resources Development Company (MRDC) Managing Director Augustine Mano. Those present in the meeting were A/Secretary Department Petroleum and Energy David Manau, Community Affairs Manger Kumul Petroleum Ian Maru and other officials. Discussions to continue on Monday.

No positive outcome through this meeting on Saturday (13/08/16) in Port Moresby. 


Meanwhile, since 2014 the usual maximum LNG flow rate from PNG LNG Marine Terminal in Port Moresby to ships has been reduced from 12,000 cubic meters/h to 6,000 m3/h as of yesterday (Friday 12/08/16) when loading for the 221st shipment. When asking this reduction in half gas export, the marine supervisors at the terminal said its due to closing down of valves by Landowners at Hides resulting in reducing the flow rate.

Company officials were tight-lips on this fact due to maintaining Exxonmobil's global image of good social corporate responsibility. Although the company suffers greatly, it plans to shift this cut to stakeholders including PNG Government and landowners.

It was reported that the valves stations were not closed in media but it is confirmed by landowners in Hides PDL1-7 valves are shutdown until a good respond is given.

In the meeting, there was no new item was discussed, rather the same old things discussed in Hides last week with the Government delegate lead by senior ministers. 

In Hides yesterday, a State team visited again to reopen the valves while negotiations take place in Port Moresby but failed.

Larry Andagali in the meeting yesterday. Image: Supplied.

Augustine Mano chairing the meeting in Port Moresby to review the landowner petition. Image: Supplied. 

Augustine Mano chairing the meeting in Port Moresby to review the landowner petition. Image: Supplied.

Friday, 12 August 2016

Student calls on the Government to establish a Food Quality Control Laboratory: To test food imports and exports

A PNG Master’s student studying Food Technology abroad has called on the PNG Government to be more affluent and well versed with its inspection of food quality control in importing and exporting.
Ms. Esther Paiela studying food technology (engineering) at Sardar Patel University in India has said PNG does not have a national food quality control laboratory that can test to standard foods to import and export.
“PNG is rich with natural food products. We can make new food products out of them and we can export them overseas. Its one main source of boosting our country's falling economy and a better way of creating a lot of job opportunities,” she said. It's better for the government to sit back and emphasize on such tangible development strategies to bring to fruition the vision 2050.
“The government should decide now to build a National Food Quality Control laboratory, a lot of food engineering students are stuck in those food manufacturing companies. Make use of them and they can help achieve the country's productivity goals in terms of food products,” Ms Paiela said.
“From a simple food engineer's view point, I would like to propose to the Government of the day if PNG can establish a National Food Quality Control Laboratory to work along with other existing statutory bodies to conduct quality check of imports and exports,” he said.
 She said latest speculations about Fiji's restrictions on PNG made goods especially food products is simply because PNG does not have a proper quality control by the Government. Most of the manufacturing companies operating in PNG are profit-oriented and they can at times cheat. They only do tests on very good products and keep records for later as evidences for auditing purposes.
“Countries like Fiji and other Western countries are very strict with food rules and laws. If our food products fail to meet the ISO standards, soon our food products will be rejected and we will become an unproductive country. These countries have very strict quarantine system to stringently screen goods and food products. If they find bacterial or physical or chemical contamination while doing quality analysis in their own country, they will put an end from buying PNG made food products,” she added.
Esther hails from Aipus village in Enga Province and she went to study in Anand Gujarat, India on an Indian Council of Cultural Relations Scholarship (ICCR).  
Esther Paiela

Esther Paiela
Esther Paiela
Photos: Esther Paiela/Supplied/2016.

Thursday, 11 August 2016

PNG-Fiji trade impasse need close dialogues: PNG on politics while Fiji looks at standards - who is right?

PNG’s Trade, Commerce and Industry Minister Richard Maru has accused Fiji for not keeping the Melanesian Spearhead Group (MSG) free trade agreement between the two countries. Mr. Maru said Fiji has been refusing to allow imports such as Ox & Palm, Trukai Rice and other PNG products into Fiji for over a decade.

 “We have allowed Fiji to have a trade surplus with PNG for a long time and trade volumes are increasing,” he added.

However, he said there have been many occasions for Fiji to cooperate and provide satisfactory explanation but Fiji has not done so, compelling PNG to take action.

Following Minister Maru’s talks with PNG’s Agriculture Minister, Tommy Tomscoll, PNG will not allow the entry of Fiji poultry products into PNG.

Maru said if countries like Australia and Singapore with higher biosecurity measures can allow the entry of PNG’s tinned product Ox & Palm, Minister Maru cannot see why Fiji has an issue with it.

PNG has given Fiji 14 days to respond favourably, before resorting to further action.

Meanwhile, Fijian Attorney General and Minister for Economy Aiyaz Sayed-Khaiyum said trade in certain goods between Fiji and PNG has temporarily ceased.

“If we are serious about promoting trade between Pacific island countries, then we need competent agencies to look at issues when they arise and this should not be done in a tit-for-tat manner,” he said.


“At the moment, we have a bit of an issue with PNG regarding the export of our chicken and, they (PNG), regarding the export of their corned beef to us.”


While Sayed-Khaiyum didn't elaborate on the issues that led to the trade impasse, he said Fiji had never engaged in a retaliatory manner when such issues arose with other countries.


“For example, when New Zealand had issues with some of the vegetable exports from Fiji, we did not turn around and place a ban on their potato exports into the country,” he said.

He said the temporary ban is based on trade standards, not politics. “I think in order to have a free flow of goods and services, it should not be seen from a retaliatory perspective. It needs to be based on standards. So if you have various quarantine standards, the exporting countries must meet those standards.


“Similarly, if you are importing, you need to be able to know standards that you have placed on them are being met, so there's free flow of goods and services within the region.”

Questions sent to the PNG government regarding the trade impasse remain unanswered.


“With respect to the PNG’s corned beef, our biosecurity authority sent recommendations to PNG and they were supposed to follow those recommendations,” Fiji Minister for Industry and Trade Faiyaz Koya said. “We have been declining the importation of that particular product of corned beef to Fiji,” he said.

While PNG’s Maru said his ministry has send a letter to his Fiji counterparts to uplift the temporary ban on Ox & Palm and other PNG goods, Fiji’s Sayed-Khaiyum says Fiji has send a set of recommendations to PNG by its Biosecurity Authority for standard checks. Sayed-Khaiyum denied any political impasse saying it’s all about standard requirements.     

Both countries seem to be waiting for each other to respond on each of their subjects of communication. PNG issued a 14-day ultimatum with a threat to ban Fiji’s dairy products into PNG if the temporary ban is not uplifted.

Who is saying the truth and who is to listen to who?  

On a mutual basis, both countries need a closer dialogue to see where they are and what need to be done on a win-win basis. It is unhealthy to pull strings at this stage; rather it requires a round-table discussion and to amicably reach what need to be done next. The fear is that it might have spread-over ramifications on the MSG tree trade agreements and that can also affect other Melanesian Spearhead brothers.
 


PNG's Trade Minister Richard Maru. Image: Supplied/2016.

Fijian Attorney General and Minister for Economy Aiyaz Sayed-Khaiyum. Image: Supplied/2016.

Monday, 8 August 2016

PNG LNG shuts down: Opposition warns Government not to use security force to resolve as it might go out of hand

Aggrieved landowners from Hides area in the Hela Province has forced ExxonMobil to shutdown the gas conditioning plant and wellheads in the PDL-17 area. Sources from ExxonMobil in Komo confirmed this after that the LNG condensation plant is confirmed shutdown of its six (6) valves along the main 292km pipeline from Hides to Omati landfall. All entrance into the plant site is completely chained/locked. More trees cut down along the pipeline corridor starting from well pad B-G and the entire pipeline corridor is definitely closed and forced all wellhead operators back to the main camp.

Landowners had given the 2hrs to ExxonMobil to shutdown control room and flare and if ExxonMobil don't want to corporate with them, they are prepared to go in and shut the control room themselves. Temporary shelter erected at the four (4) corner just in front of the gate entrance into the plant site and wellheads.

Meanwhile, Opposition leader Don Polye in a media statement released this afternoon warn the Government not to use the security force to resolve the issues, rather create dialogue and resolve in an amicable manner.  

Mr. Polye urged the Prime Minister Peter O’Neill to visit the disgruntled landowners on site and address the shutdown issue.  

Prime Minister Peter O’Neill and his key economic ministers are being urged to travel to the LNG project site in Hela for talks with the aggrieved landowners.

Upon learning the government plans to use police and army, Opposition Leader Don Pomb Polye made the call.

“The insensitive Prime Minister, Finance Minister James Marape, Planning Minister Charles Abel and Treasury Minister Pruaitch must not use the disciplined forces to contain the situation.

“Their engagement will not solve any problem. It will exacerbate the situation,” said Mr Polye.

He said shutdown of the Hide gas plant by angry landowners over delay in LNG project related funds reflected the government’s incompetency.

“I call on the Prime Minister and his key economic ministers to deal with landowner issues honestly and justly.

“When I was in government, I handled their grievances with care and prudence.

“Hence, I avoided shutdowns,” he said.

The shutdown of the LNG Project stems from a demand by prominent businessman and landowner leader of Hides PDL 1, Larry Andagali, whom have supported the calls by Hides PDL 7 landowners to shut down the LNG project indefinitely.

Mr. Andagali said PDL 1 landowners will join as well because he claims the Government has taken six-and-a-half years, since the signing of the final LBBSA agreement (Dec 7, 2009), to kick-start the PNG LNG Project.

Andagali says the Government has turned a “blind eye” on its people through the slow clan vetting and landowner identification process.

He said the provincial government supported an NEC-approved “beneficiary group” to negotiate and manage the 4.27 percent Kroton equity, which does not represent the PDL1 landowners’ interest.

“ExxonMobil and Oil Search must comply to our call and shut down the project. So far we have been patient and guaranteed 250 loads of LNG cargo, which is in the billions of Kina and to date, landowners have not seen our benefits,” said Andagali.

“We do not want confrontation. If this call is not adhered to, then you face the full force of LNG landowners and we are now calling on all landowners from Papa Lea Lea to Juha to join forces,” Andagali further said.

He says social mapping and landowner identification process is the number one procedure any developer should follow under law. He thinks the developers have failed in this project. This process will identify legitimate clans and their leadership is crucial to carrying out the following:

•Develop their future generation’s benefit management trust; 
•Develop infrastructure development plan to spend K120m per annum in IDG grants (previously called MoA funds);
•Develop proper umbrella company structure to manage 30 percent of its community investment programs from their 2 percent royalty and 2 percent free equity benefits; 
•Develop proper ILG cash distribution processes so that 40 percent cash component of royalty and equity benefits are paid direct into the clan ILGs accounts; and 
•Raise 4.27 percent Kroton equity.

The situation is tense at Komo with disgruntled landowners minding the gate and gas valves in Hides and Komo areas, reportedly with firearms.


 A landowner representative making the final call this afternoon to shut down the valves stations and condensation plant at Hides and Komo. Image: Supplied/2016.

Main entrance into ExxonMobil camp in Komo area being closed this afternoon. Image: Supplied/2016.
Opposition warns Government not to use security forces (police and defense) to solve the issue s it might not turn right. Don Polye calls on Peter O'Neill to negotiate in a amicable manner. Image: Supplied/2016.
PNG LNG condensation plant in Port Moresby that the gas flows from Hides and Kutubu well-pads through a onshore 292km pipeline and into the sea from Gulf Province to Port Moresby. Before being shipped, it is condensed here in Port Moresby. Image: Supplied/2016. 

PNG LNG ship that  takes away the final gas to energy markets in Asia, Europe and Amerca. The ship is specifically build to shipping gas from PNG. Image: Supplied/2016.