THE Somare Government should be commended for establishing Petromin Holdings under an Act of Parliament (Petromin Act) to become a vehicle that will manage the State’s net equity interests in mining and hydrocarbon projects.
Like any oil and mining company, Petromin has the right to venture into exploration and development, including downstream processing.
The petroleum and mining industries are the most powerful industries in the world because of their diabolic cash flow strengths and their ability to shake and shape economies, nations and politics.
Of these two sister industries, the petroleum industry from a global perspective, is the single most powerful industry in this modern era because it is inextricably intertwined to global energy and economic issues.
In terms of cash flow, it is so big that it outweighs the combined cash flows of many industries, including the mining industry.
Countries like US, UK, Norway and Malaysia have become very successful and attained high living standards because they have well managed their respective petroleum industries and oil revenues.
PNG needs to learn from Malaysia, our close regional neighbour, and its success story through Petronas, one of the most successful State-owned oil companies in the world today.
It is important that the management of Petromin must appreciate the dynamics of the petroleum and mining industries in order to take the company to a higher level.
This includes the type of people it recruits to top jobs.
Petromin should not become another State entity to provide jobs for the boys.
For the growth and success of the company, it must focus on recruiting the best talents, which includes young nationals who are highly qualified with adequate industry experience, and who have the ability to articulate both verbally and written.
I am somewhat shocked to hear the names of some people Petromin has recruited as managers.
I have over 10 years of experience in the petroleum industry and possess a masters degree in a reputable international petroleum university, so I know what I am talking about.
Petromin needs to get its priorities right from the outset.
Otherwise, the State needs to seriously reconsider the future of this entity because the nation simply cannot afford to lose potentially billions of petroleum and minerals revenues through an entity that cannot manage itself.

Southern Highlander
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