Showing posts with label LNG proceeds. Show all posts
Showing posts with label LNG proceeds. Show all posts

PNG LNG GAS PROCEEDS: How Much Has Been Made Within 5 months?

On 26th May 2014 there was report of first liquefied natural gas (LNG) shipment . Within 5 months, over 12 shipments have arrived at their destination, Japan.

The LNG project built at a cost of about USD$19 billion. Estimated to produce for 30 years!

Calculation: These are based on Prime Minister Peter O’Neill’s response (see video below) to questions regarding the proceeds from the sales of 12 LNG shipments.

*Calculations are based on responses from the Prime Minister, Peter O’Neill, when questioned Don Polye and Sam Basil. 

O'Neill said over 12 shipments have gone out of the country. That means that there is more than US$600 million of proceeds from PNG LNG sales to date.

The Irregularities in O'Neill's Response: Two obvious contradictions worth re-iterating. First media outlets and Exxon Mobile have been saying that the project has a 30 year duration, but the prime minister mentioned 20 years when giving his response. Well, 10 years difference means a loss of a third of projected revenue. Second, PNG government Hansard, pointed out by Sam Basil, has record of treasurer boasting an undisclosed amount of government's cut parked in Trust Accounts earlier in a parliament debate. Yet, the prime minister contradicted him - watch the video.

What is the PM implying to international community and stakeholders when he concocted a different story to his treasurer?

O'Neill also said the revenue will start to come to the government's coffers from 2015 on wards. That is a decision usually made by company's board of directors, not O'Neill or his government.

End: We are clear that there are now US$600 million (that is PNGK1.5 billion) in proceeds in the bank. Misinformation and irregularities when dealing with billions of country's Kina must be avoided at all cost. There should be NO room for error.