PNG Gas to Napanapa-sorry NO Gas to Queenland

PNG Gas to Napanapa-sorry NO Gas to Queenland

Peaceful Heart
Peaceful Heart

July 26th, 2006, 6:22 am #1

Been away for long time and I am back with a topic.

I believe InterOil's current drilling activity in their Elk 1ST1 well is potentially going to be a huge discovery. Only few meters of the target reservoir (Puri limestone) has been drilled and given the enormous pressure with which the gas is comming out and quickly converting itself into Oil at surface (due to pressure differences) we are in for another round of excitment of exploration in the Papuan Foreland basin.

Personally I don't like the current Gas to Queensland deal between PNG govt and the Oil companies involved as PNG will be the biggest looser at the end.

If ELK 1ST1 is tested and appraisal wells are drilled into the structural traps around the area and they prove to be more bigger than Hides (or like Hides gas field), I know for sure that PNG Gas Project to Queensland will never take place. Sore tru, but a much better deal would be a 'Gas Pipeline to Napanapa' instead. Connecting Hides to Kerema and all the way to Napanapa Pom. We refine everything at Napanapa, create more jobs, sell end products in both PNG and overseas...how's that for a start? With the govt's plan of making the area around the Fairfax harbour into an Industrial Park, the Elk discovery at Kerema may kick start a new turn of development around the Fairfax harbour more sooner than expected.

With the current gas discovery by Austral Pacific at their Douglas 1 well, Gas to Queensland from my oppinion will not go ahead. All the Gas will now end up at Napanapa as InterOil is into LNG processing as well. In my own oppinion, this would be a better project(at least) for the govt to support than Gas to Queensland.

Over to you for your comments.

Regards,
Peaceful Heart



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Anonymous
Anonymous

July 26th, 2006, 8:07 am #2

Peaceful Heart,

So are we finally getting our LP gas cylinders from napa napa instead of from Singapore? Do you know that for a fact? It's impossible to tell from the price, since InterOil is allowed to charge for its refined products as if they had been transported from Singapore - that's what's in the 30 year agreement that Malalo Moi put together with the Texas tycoons of InterOil.

More info welcome!
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Anonymous
Anonymous

July 30th, 2006, 5:24 am #3

Anon, could you give more details on the '30-year contract?
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Anonymous
Anonymous

July 30th, 2006, 8:18 am #4

This has been talked about before on this board.

Our government gave InterOil the right, for 30 years-

* to charge world market prices for fuel sold to PNGeans even though more than enough oil comes out of PNG ground to satisify our need AND most other oil exporting contries subsidise the cost of fuel to their citizens to reduce hardship.

* to charge Papua New Guineans for fuel as if the oil came from Singapore (like it used to) instead of from Kutubu. In other words, when diesel or kero comes from napanapa and is sent to Lae, InterOil is allowed, for 30 years, to charge not only the transport costs from Kikori to Napanapa, and then from Napanapa to Lae, but also can add an additional charge AS IF the oil had come all the way from Singapore.

That guarantees that InterOil will make lots of money off the backs of hard working Papua New Guineans not just for 1 or 2 years, but for the next 30.



PNG's government goes out of its way to help foreign oil companies, whereas most Middle Eastern countries, as well as Venezuala and now Bolivia have nationalised their oil industries putting it firmly into the hands of their own citizens, and sometimes charging as little as toea per litre for fuel as a direct subsidy to their citizens.
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Anonymous
Anonymous

August 4th, 2006, 8:26 am #5

Peacefull Heart, with the announcement of state of emergency in the SHP, an Aussie MP has called to stop the PNG-Queensland pipline project.

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ManMountain
ManMountain

August 6th, 2006, 7:22 am #6

Been away for long time and I am back with a topic.

I believe InterOil's current drilling activity in their Elk 1ST1 well is potentially going to be a huge discovery. Only few meters of the target reservoir (Puri limestone) has been drilled and given the enormous pressure with which the gas is comming out and quickly converting itself into Oil at surface (due to pressure differences) we are in for another round of excitment of exploration in the Papuan Foreland basin.

Personally I don't like the current Gas to Queensland deal between PNG govt and the Oil companies involved as PNG will be the biggest looser at the end.

If ELK 1ST1 is tested and appraisal wells are drilled into the structural traps around the area and they prove to be more bigger than Hides (or like Hides gas field), I know for sure that PNG Gas Project to Queensland will never take place. Sore tru, but a much better deal would be a 'Gas Pipeline to Napanapa' instead. Connecting Hides to Kerema and all the way to Napanapa Pom. We refine everything at Napanapa, create more jobs, sell end products in both PNG and overseas...how's that for a start? With the govt's plan of making the area around the Fairfax harbour into an Industrial Park, the Elk discovery at Kerema may kick start a new turn of development around the Fairfax harbour more sooner than expected.

With the current gas discovery by Austral Pacific at their Douglas 1 well, Gas to Queensland from my oppinion will not go ahead. All the Gas will now end up at Napanapa as InterOil is into LNG processing as well. In my own oppinion, this would be a better project(at least) for the govt to support than Gas to Queensland.

Over to you for your comments.

Regards,
Peaceful Heart


This is all working in favour of Phil Mulacek and InterOil.

A visionary....good on him.

M.M
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Traim Tasol
Traim Tasol

August 7th, 2006, 9:09 am #7

People,

Did you know it is cheaper to ship something from Singapore to Lae then it is to ship something from Pom to Lae? By the same token, a ship sailing direct from Singapore to Port Moresby could land fuel in Pom cheaper than the Napanap refinery.

So the fuel we are buying from Napanapa is more expensive then if it was shipped from Singapore to PNG. I know because I have been in the export/import business for the last 7 years. Put it this way, the freight from Singapore to Lae (or Pom) is about 25% of the cost of shipping from Pom to Lae. I have argued about this with Consort many times and I know. I can ship a full 20' FCL from Madang to Florida for around K10,000, the same container will cost K12,000 + handling charges to ship from Madang to Port Moresby!
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M.M
M.M

August 8th, 2006, 12:09 am #8

Been away for long time and I am back with a topic.

I believe InterOil's current drilling activity in their Elk 1ST1 well is potentially going to be a huge discovery. Only few meters of the target reservoir (Puri limestone) has been drilled and given the enormous pressure with which the gas is comming out and quickly converting itself into Oil at surface (due to pressure differences) we are in for another round of excitment of exploration in the Papuan Foreland basin.

Personally I don't like the current Gas to Queensland deal between PNG govt and the Oil companies involved as PNG will be the biggest looser at the end.

If ELK 1ST1 is tested and appraisal wells are drilled into the structural traps around the area and they prove to be more bigger than Hides (or like Hides gas field), I know for sure that PNG Gas Project to Queensland will never take place. Sore tru, but a much better deal would be a 'Gas Pipeline to Napanapa' instead. Connecting Hides to Kerema and all the way to Napanapa Pom. We refine everything at Napanapa, create more jobs, sell end products in both PNG and overseas...how's that for a start? With the govt's plan of making the area around the Fairfax harbour into an Industrial Park, the Elk discovery at Kerema may kick start a new turn of development around the Fairfax harbour more sooner than expected.

With the current gas discovery by Austral Pacific at their Douglas 1 well, Gas to Queensland from my oppinion will not go ahead. All the Gas will now end up at Napanapa as InterOil is into LNG processing as well. In my own oppinion, this would be a better project(at least) for the govt to support than Gas to Queensland.

Over to you for your comments.

Regards,
Peaceful Heart


Qld oil firm poised to challenge gas project

By FREDDY GIGMAI
THE Papua New Guinea Gas pipeline project is facing another challenge Down Under, this time from a leading Australian coal-seam gas producer, Queensland Gas Co.
The company announced yesterday that it was moving to double its proven and probable reserves to 1,000 petajoules by ramping up production and appraisal at its Berwyndale South development and near-field exploration.
This announcement comes just a week after Western Australian premier Alan Carpenter took advantage of the current security issues surrounding the K9.2 billion Papua New Guinea gas project in Southern Highlands province by calling for a transcontinental pipeline linking WA’s vast gas supplies with the east coast market.
QGC unveiled a A$59.7 million (K138.7 million), share-based rights issue to help boost production and reserves in order to lock in more major customers before the proposed PNG-Queensland pipeline comes on-stream.
Managing director Richard Cottee said within 12 months, the company aimed to have confirmed reserves large enough to meet eastern Australia’s gas needs for many years from a very low cost base.
According to pngindustrynews, Cottee argued that the costs of building major pipelines were rising rapidly and he believed QGC could provide cheaper gas than PNG, adding that QGC was developing its gas production facilities around the Surat Basin’s Undulla Nose geological structure, which he believed could prove to be a world-class gas resource.
Last week Mr Carpenter claimed that the declaration of a state of emergency in SHP was further evidence that PNG carries risks but Petroleum and Energy Minister Sir Moi Avei nailed the WA premier labelling his criticism of the gas project as “ill informed”.
Mr Avei took to task Mr Carpenter’s criticism, saying that “as far as he was aware the premier had never visited PNG and had not been briefed on the gas project.
Meanwhile, a group of leaders comprising former national politicians and local level government presidents from the Hela region and Nipa-Kutubu electorate of SHP have reassured the PNG Government and Oil Search that the state of emergency declared in their province would not disturb the oil and gas projects.
The leaders said the projects belonged to the people of PNG and should be left to continue their normal operations but asked for a proper explanation from the Government on the declaration of the state of emergency.
___________________________
Just watch these turn of events; PNG Gas will never go to Australia.
I believe a devine intervention.
Some of us have been hoping this would happen, and it will happen.

ManMountain
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