PNG LNG | Do You Know ExxonMobil Can Recover Development Cost Under 5 Years

This analysis is based on the Prime Minister of Papua New Guinea (PNG) response to series of questions from the Opposition. Including latest report from the nation’s television broadcaster EMTV news on Liquefied Natural Gas (LNG) production in the country.

Many Papua New Guineans thought the US$19 billion earmarked for PNGLNG development was a huge investment. The amount actually spent was less.  A report from EMTV revealed that ExxonMobil saved over US$8 billion during construction phase.



To date over 42 shipments have left PNG shores.The Prime Minister, Peter O’Neill, when responding to Deputy Opposition leader questions about the shipments of LNG products, said a shipment was valued at US$50, 000, 000 on average. 

Expenditure margin has been reduced when ExxonMobil moved from development to production. Perhaps it is important to consider the savings of US£8 billion - a savings of 30% . Another good news for shareholders is that the company is likely to recover all the development costs – US$11 billion – in just 5 years.

For clarity: if 42 shipments worth on average US$50 000 000 each, ExxonMobile has made US$2.1 billion in six months. Double it to give US$4.2 billion in one year. So, in 5 years if oil price averages at the current rate, the project would have made US$21 billion.

So what does that mean? That means that the every shareholder would enjoy the fruit of their investments. What is not so right is the fact that PNG Government has borrowed heavily to partake in this business.


So, who is going to benefit from PNG LNG project?


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Alternative PNG Prime Minister | Will Peter O'Neill Be Forced to Step Down?


L-R: O'Neill, Parkop, Kua, Namah [Google Images]
In light of the recent developments (referral of Prime Minister Peter O’Neill  to the Leadership Tribunal and pending arrest warrant for criminal charges), there may have been internal forces emerging, mounting and drumming up for who should take over the leadership into the 2017 election or until PO is cleared.


The most probable event will be that the PM will not step aside, unless asked to, as documented in his press release. But, his latest referral and pending criminal charges may have already created frictions within his regime resulting in breakdown in the Coalition Partners. 

Signs of disagreements were evident when Mr O'Neill sacked Sinesine-Yongomugl MP Kerenga Kua and Kandep MP Don Polye, two senior members of his cabinet. Other senior members are also not at ease, yet too afraid to  speak up unless opportunity presents itself. Hence, a change of leadership within PNC party or coalition partners is inevitable.

Either way, the government MPs (including those of the ruling PNC party), the middle bench and opposition may have to think strategically if the unexpected happens. They must think about the best way forward if (and when) Peter O’Neill is forced to step aside.

If he is pressurised from within his government or from the masses or by a Leadership Tribunal, most likely he would relinquish the prime ministership to another PNC member. Government MPs who can act sensibly and responsibly can regroup to change the leadership. In the best interest of the nation, a change must be without destabilising economic, political, social or any development. What is important here is stability and good governance.  

The opinion widely held by the public is that there is no one credible person/MP in the ruling PNC party to take over the prime ministership.

The 'would be' candidates may include:

1. Leon Dion – was made a deputy PM under the circumstances and not someone vibrant enough and decisive to lead.

2. Nick Kuman - who is rather soft and out-dated (not vibrant and dynamic),

3. Richard Maru - may be an enterprising state minister but may not master the parliamentary support for leadership.

4. Other PNC members including Marape, Zeming, Pato, etc are all rudimentary and not so prominent and promising candidates for PM.

Other coalition partners:

1. Ben Micah - has the popularity but diluted and disgraced himself on many fronts and further, he is a PPP man,

2. Bire Kimisopa - his leadership is diminished when he has been numb and dumb on issues of national concern and corruptions. He is lately trying to create media attention but he is already written off in the minds of the people,

 3. Don Polye - his party has been fragmented and destroyed. To regroup and re-gather has to be a move from not only his party but has to be supported by majority of the ruling PNC party which is highly unlikely, 

4. Patrick Pruhaitch – his integrity is already tarnished, not a decisive leader.

5. Kerenga Kua – though he is not a party leader, he briefly displayed maturity and confidence. Thereafter he has disappeared from the scene. He is credible but needed to do more to earn the parliamentary support,

6. Former  PMs are all back sitters

7. Powes Parkop - he is enterprising, innovative and serving backed by his vision. PP only problem is his close alignment with PO which he got mud over his face. Secondly, PP’s party in the government is minority. He really needed to persuade the ruling PNC party to back him if he ever needed to become the PM.


Opposition Members

Belden Namah, Sam Basil and Allen Marat are credible and prominent, principle-driven and unwavering. The Opposition Leader is no nonsense, firm, bold and is still a credible material for prime ministership. The only problem here is no government MPs would want to join the opposition.

Potential prime-ministerial candidates to take over from Mr O’Neill  are Powes Parkop, Belden Namah, and Kerenga Kua. 

Within the coalition political parties NCDC Governor Powes Parkop remains to be a better candidate for prime minister leading to 2017. 



- Guest Article, Adapted -

O'Neill Referred | 3 Allegations Of Misconduct By Prime Minister of Papua New Guinea

Peter O'Neill [Google Pics]
Referral of the Prime Minister to a Leadership Tribunal was confirmed. The news was a ‘Breaking News’ on Sharp Talk. It was interesting to note that people close to the prime minister didn’t know.

Yet, this particular referral process has taken three months. Ombudsman Commission (OC) referred Peter O’Neill on Tuesday 12th of August, 2014. 


According to the Public Prosecutor the initial referral did not contain sufficient evidence, credible to request the Chief Justice to appoint a Leadership Tribunal. OC has now provided cogent evidence, convincing to see this judicial process through.

Peter O’Neill referral is based  on 3 allegations reported in the Post Courier on 13th August 2014:

The Prime Minister failed to comply with administrative and financial processes including the normal overseas borrowing process in the approval of the K3 billion loan from the Union Bank of Switzerland AF (Australia Branch);

The leader having made a media release on the sacking of Mr Don Polye as the Minister for Treasury by saying that Mr Don Polye caused instability in the Government, when the actual reason was to do with Mr Polye’s refusal to sign the UBS Loan deal which the Prime Minister had unilaterally approved on March 6, 2014; and

The leader made a misleading statement on EMTV that he had obtained advice from the state agencies including Bank of Papua New Guinea on the UBS loan to purchase Oil Search shares, which was contrary to the evidence received.

Until Friday 14th 2014, no one has thought the Public Prosecutor would have made this bold move. To request Chief Justice to call for a Leadership Tribunal is a step in the right direction. The tribunal will deliberate on the process and transparency surrounding the K3 billion loan from Union Bank of Switzerland, the UBS.

Has the Prime Minister, Peter O'Neill, complied with due process? Has he sacked Don Polye for the right reason? Has he obtained advise from appropriate institutions before signing off the loan? Those questions will be tested against the OCs evidence. 

Facing the evidence is what Peter O'Neill has dreaded. That's his great phobia. He must subject himself to this referral.  He can only proclaim his innocence by proving to the contrary any evidence provided to a Leadership Tribunal by the OC. 

Sir Peter Barter Passed On His Legacy Lives On

Sir Peter Barter dies in Cairns: The family of former Papua New Guinea cabinet minister Sir Peter Barter has announced his death on Wednesday at Cairns Hospital, Queensland.

Sir Peter spent 55 years in PNG, after going there to work as a pilot for the Divine Word missionaries.

He later became a prominent businessman involved in tourism, running a resort and ships, and later served three terms in parliament, becoming minister of Provincial Affairs and Health.

Sir peter barter passes on 2022
Sir Peter Barter          Courtesy SMH


SOCIETY, MEDIA AND SOCIAL MEDIA 

Democratic good governance depends on public debate – a debate which is based on fact, honestly and openly held views, and willingness to engage with participants who hold quite different positions. 

The Internet provides fresh – and exciting – opportunities for just such debates on important public issues. Unfortunately, however, it often falls short as some participants make ill-founded claims, or simply resort to labelling those with whom they happen to disagree. 

In complex and contested environments, such as those experienced at times in some parts of Papua New Guinea, such conduct has the potential to publicize mere assertions, even untruths, or, particularly when labelling is involved, personal abuse. 

In doing so, it may add or give rise to tensions on the ground.

Sir Peter Barter work as Minister for Bougainville Affairs

As Minister for Bougainville Affairs, the challenges I faced included working to build trust not only in government but between ex-combatants on different sides of the previous conflict, and within and between communities around Bougainville. 

Similar challenges arose when the 2002 elections in Southern Highlands failed. 

My responsibilities included rebuilding the trust which is basic to peace, democracy and good governance on the ground. 

Media must contribute to informed debate 

Anyone who values the free exchanges which are vital to democracy must, surely, appreciate the opportunities that blogs and other sites on the Internet provide. 

However, the ways in which some participants make unfounded assertions or simply ‘slag off’ at those with whom they disagree must, surely, be cause for concern. In doing so, they do not contribute to the informed debate or help build the trust and mutual confidence in government and the wider community which are basic to public order and development. 

What Sir Peter Barter said about PNG Social Media

In this regard, contributors to social media would be well advised to bear in the wider – social – context in which they are expressing themselves, and that the role of media is to transmit what they say to a much wider audience which may not be aware of the immediate issues or context in which they are expressing themselves, or have ready access to other sources of information and opinion. 

In short, freedom of expression should be accompanied by an appropriate sense of responsibility.

Autonomous Region of Bougainville

Having been privileged to serve as the Minister with primary responsibility for the Bougainville Affairs for eight years, I continue to maintain a keen interest in the progress that is being made in the Autonomous Region of Bougainville. 

In doing so, I remain in personal contact with the President of the Autonomous Bougainville Government, Hon. Dr John Momis and other Bougainvillean leaders, as well as students at the Divine Word University (where I have the honour of being a Council Member).

Without wishing to dwell on the past, I would like to make it clear that the negotiations which produced and then gave legal effect to the Bougainville Peace Agreement by amending the National Constitution and enacting the Organic Law on Peace-Building in Bougainville involved Bougainvillean leaders on all sides of the previous conflict, support by the United Nations, Australia, New Zealand, and other countries, and, most importantly, the active participation of the churches, individuals like the late Theodore Miriung, as well as women and men around Bougainville. 

These efforts led to the making of the Bougainville Constitution, the formation of the Autonomous Bougainville Government (ABG), and, now, the work underway to bring about restoration and development on the ground, the transfer of functions and powers to the ABG, and preparations for the guaranteed referendum on Bougainville’s political future (due to be held, when good governance and weapons disposal have been achieved, between 2015 and 2020).

Sir Peter Barter and his work on the Autonomous Region of Bougainville

As Minister for Bougainville Affairs, I saw my immediate task to help make and build peace on the ground, and secure the resources required to provide essential services to the people. Australia, New Zealand, Japan, the European Union, and other aid donors provided generous support.

Aware of the sensitivities among local communities, in particular, I did not encourage discussion about the future of mining at Panguna. 

However, I did make public my view that, in order to be truly autonomous, or become independent following the referendum, Bougainville would need to have an economy and become less reliant on donor aid. 

This is clearly a prime concern of the ABG and the people of Bougainville. They want Bougainville to be autonomous, and, in the event the people vote for independence and the National Parliament agrees, they do not want to be beggars.

Throughout my time as Minister, I had to deal with the sensitivities of the various factions, and endeavour to establish an environment in which the peace process could keep moving ahead - as it has, in fact, done. Though there may be people who disagree, I am confident that significant progress has been made, and that this will continue if we can harness the resources we have available now and in the future.

2002 Southern Highlands failed elections

In addition to my responsibilities as Minister for Bougainville Affairs, I had to deal with the failed elections in the Southern Highlands and, ultimately, the establishment of the Hela and Jiwaka Provinces. 

I used many of the same processes learnt in Bougainville to help bring back some semblance of law and order and ensure an environment in which elections could take place. 

An important lesson I learnt is that you cannot wave a magic wand to bring about peace; peace can only occur if everyone wants peace; peace begins in the hearts of those who want peace!

Freedom and diversity of the views expressed in social media

Many of us appreciate the freedom and diversity of the views expressed in social media concerning Bougainville and other important issues and parts of Papua New Guinea. 

However, in doing so, we cannot help but be concerned at the ways in which some participants behave and express themselves as if they have the licence to say whatever they choose, however sarcastically and disrespectfully they seek to express themselves and even impose their views. 

Errors of fact, exaggerations, deliberate untruths and the application of unwarranted and unwelcome labels to other individuals, groups or organizations may cause offence, even hurt, to those who are targeted, including people who are innocent or, perhaps, unaware of the allegations being made or slurs being cast. 

True democratic debate in PNG

Truly democratic debate is a matter of honesty, openness and trust in the integrity of other participants and the process as a whole. 

It is accordingly important that participants in blogs and other social media recognize the importance of these values, the role they are playing, and the need to behave in ways which are consistent with – and so help to reinforce – the very democratic values on which they rely.

Like every other country, Papua New Guinea cannot claim to be perfect. Amid our diversity, we have impressive – including some quite unique - national strengths. 

We also have important national challenges to address and overcome. While criticism can be vital to inform national debate in a democracy, ridicule and abuse are not; they frequently represent an abuse of free speech that would be condemned elsewhere, including the countries from which some of it originates.

Papua New Guinea development  dilemma

Papua New Guinea needs improvements in health, education, employment and other opportunities for youth, which would help to reduce temptations to crime and reduce our reliance on foreign aid. 

A more self-reliant society and economy are important keys to a sustainable future. 

While it is not the only way forward, these are precisely the issues being addressed and the reasons why mining is receiving increasing attention in Bougainville. 

It is vital both to democratic good governance and to Bougainville’s future that participants in the discussions in Bougainville are not labelled in derogatory ways, or subjected to abuse or ill-founded accusations. 

Like participants in other democratic debates, they are entitled to be treated with honesty and respect. While they have the right to freedom of speech, contributors to social media should recognize the responsibilities that participation in the social and media aspects of their activities entails.

Papua New Guinea is an independent country. We have come a long way. Anyone who knows or cares for Papua New Guinea can only be impressed with the development that has taken place while recognizing that much still needs to be done. 

Sir Peter Barter balanced comments


My comments concerning social media are not directed against any specific person(s) or organization(s). 

My aim is simply to ensure that Papua New Guinea keeps moving ahead – towards what I believe are shared national objectives of more equitable distribution of wealth, more employment, and sustainable self-reliance based on agriculture, manufacturing, tourism and a responsible approach towards mining and resource development that will bring about improved services to the people of Papua New Guinea.

I, therefore, call on users of social media, both in-country and overseas, to adopt – and on their audiences to encourage - and promote a positive, respectful and optimistic approach when discussing issues in and affecting Papua New Guinea. 

The word ‘optimism’ comes from the Latin word ‘optimus’, meaning "best". An optimistic approach is one which leads one to look for the best in any situation, whether or not it is really welcome. While self-awareness and self-criticism are important, slagging off at our country or particular national actors is unlikely to lead to positive outcomes. The key to a successful future is mutual and self-respect, and an optimistic approach towards the opportunities and challenges we face.



Oct 10, 2014

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