By Rositta Liosi – EMTV Online
2015 PNG Mining and Petroleum Conference
“Opportunities in Challenging Times”
Here are some key takeaway points from Wapu Sonk, Managing Director for the National Petroleum Company of PNG, when he addressed: “LNG and other Gas Developments – Future Opportunities for Kumul Petroleum.”
The National Petroleum Company of PNG became known as Kumul Petroleum Holdings Limited (KPHL) after the Kumul Petroleum Authorisation Bill was passed on the floor of parliament this year. Kumul Petroleum will hold the country’s oil and gas interests and has strategic development partnerships with its competitors to assist in the development of KPHL in order to create value and opportunity for PNG and its people. Kumul Petroleum Holdings Limited initiatives include:
Kumul Petroleum’s Power Generation Initiative:
- A power generation initiative which makes gas available for power generation. An MOU was signed between KPHL and PNG Power Ltd to work in partnership. Strong proponents for a small proportion of the nation’s gas to be provided from other projects force the step change in electrification which is required. Support the concept of trading of the supply of domestic gas, so the burden to supply domestically is carried evenly.
Kumul Academy Life Gas Plant:
- The school will give Papua New Guineans the opportunity to be trained as Petroleum Engineers. The college will be situated at the world-class state-of-the-art training facility at the Port Moresby Technical College.
Petrochemical/Methanol Project:
- KPHL and Sojitz Corporation have formed a joint venture to assess the potential benefits of constructing a methanol plant in PNG. The joint venture will seek a source for the required gas and look for a location for the plant. The intent is to generate local industrial activity and employment.
Other opportunities for KPHL which are currently being reviewed, include:
Maximising LNG Participation above the nominee rights
- Exercising rights for increased equity made available as a JVP
- Participating in licenses before PDLs (and nominee rights) are granted
- Considering early participation in unconventional developments, such as mini LNG
Participating in Exploration and Development Opportunities
- Already started by commercially entering into PRL9, PRL14 and PDL3
- Will increasing consider taking on acreage we believe has potential.
Strongly considering common carrier or tolling pipelines
- Consolidating small fields in remote areas could lead to local industrial development
- Better return for explorers would encourage greater exploration (which is good for KPHL)
- Competition from buyers good for sellers and encourages development
You can watch more from Wapu Sonk on Resource PNG, with the episode date TBA.
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